Sunrise Communications Ag Class A · SIX:SUNN
Sunrise Communications Ag Class A — Investor Day (September 2024)
123 slides from Sunrise Communications Ag Class A's investor day presentation, Sep 9, 2024
Slide 1: Switzerland’s premium and scaled challenger – primed for growth & cash returns
Switzerland’s premium and scaled challenger – primed for growth & cash returns Capital Markets Day 9 September 2024 1
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only in connection with the spin-off (the “Transaction”) by Liberty Global Ltd. (“Liberty Global”) of the businesses of its Swiss telecommunications provider into a separate publicly traded company Sunrise Communications AG (“Sunrise”). No O
Slide 3: Opening remarks
Opening remarks André Krause – CEO 3
Slide 4: Highly experienced management team leading Sunrise’s next growth chapter
Highly experienced management team leading Sunrise’s next growth chapter 13 26 11 11 12 22 15 25 <1 26 ANDRÉ JANY CHRISTOPH STEFAN THORSTEN KRAUSE FRUYTIER RICHARTZ FUCHS HAESER Chief Executive Officer Chief Financial Officer Chief Consumer Officer Chief Consumer Officer Chief Business Officer Main
Slide 5: Agenda
Agenda OPENING REMARKS SUSTAINABILITY André Krause – CEO 4 AND GOVERNANCE Mike Fries – CEO Liberty Global André Krause – CEO RE-INTRODUCING SUNRISE 1 André Krause – CEO Q&A BUSINESS OVERVIEW Christoph Richartz – CCO Main Brand FINANCIAL OVERVIEW 2 Stefan Fuchs – CCO Flanker Brand 5 Jany Fruytier – C
Slide 6: Introduction by the Chairman
Introduction by the Chairman Mike Fries – CEO Liberty Global, Sunrise Chair
Slide 7: Introducing the Board
Introducing the Board THOMAS INGRID CATHERINE ADAM MEYER DELTENRE MÜHLEMANN BIRD LUTZ ENRIQUE MIKE SCHÜLER RODRIGUEZ FRIES (CHAIRMAN) 7
Slide 8: Re-Introducing Sunrise
Re-Introducing Sunrise André Krause – CEO 1
Slide 9: Spin-off: The next step in Sunrise’s growth story
Spin-off: The next step in Sunrise’s growth story Spin-off of Sunrise expected in Q4 2024 with listing on the SIX Swiss Exchange Sunrise’s evolution post 2020 acquisition by Liberty Global Spin-off rationale Well-positioned for growth post Establish fully-distributed valuation successful merger inte
Slide 10: Sunrise is the premium and scaled challenger in Switzerland
Sunrise is the premium and scaled challenger in Switzerland with strong positions in mobile, broadband and TV Strong financial profile (2023A CHFbn) Fixed 35% Revenue ~3.0bn ~1.0bn ~0.5bn ~0.4bn split1 Revenue Adj. EBITDAaL Adj. EBITDAaL Adj. FCF B2B 34% margin less P&E Additions ~12% revenue Mobile
Slide 11: Attractive & progressive shareholder returns
Switzerland’s premium and scaled challenger – primed for growth and cash returns A Favourable Swiss macro environment B Attractive telecom market Attractive C Premium and scaled challenger & progressive D High quality and future-fit networks shareholder E Stable business and compelling returns cash
Slide 12: Switzerland benefits from strong macro fundamentals and a stable political environment
A Switzerland benefits from strong macro fundamentals and a stable political environment Highly affluent and growing economy Low cost of capital and low tax Consistently low inflation 2023A nominal GDP per capita (CHF ‘000) 10yr government bond yields (%)1 Compounded annual CPI 2017-2023A (%) GDP CA
Slide 13: Attractive ~CHF8.1bn telecom market providing fertile ground
B Attractive ~CHF8.1bn1 telecom market providing fertile ground for Sunrise’s continued success story One of the most technologically Focus on quality Attractive ARPU advanced telecom markets in Europe Healthy, rational Benign, ex-post Multiple growth levers 3-player market regulatory environment So
Slide 14: Premium and scaled challenger across mobile, broadband and TV
C Premium and scaled challenger across mobile, broadband and TV Clear #2 in mobile Clear #2 in broadband Clear #2 in TV Regional utilities / providers 18% Others 18% 48% 56% 24% 40% 5% CHF4.3bn1 CHF2.2bn1 CHF1.6bn1 5% 26% 28% 31% 2 2 2 Source: Ampere Analysis Note: Market shares % (based on RGUs); v
Slide 15: Best-in-class, future-fit networks enabling forward growth
D Best-in-class, future-fit networks enabling forward growth Most comprehensive fixed network access delivering the highest One of the best mobile networks in Europe gigabit coverage in Switzerland 2024 Connect network test results, points on a scale of 1,0001 Dwellings coverage (%) and max speeds (
Slide 16: Delivering stable top-line throughout the Sunrise UPC integration while increasing cash flows
E Delivering stable top-line throughout the Sunrise UPC integration while increasing cash flows Revenue (CHFm) 3,042 3,042 3,035 Stable topline on the back of volume related growth partially offset by customer churn related to brand 1,484 integration and price increases 2021RB 2022RB 2023RB H1 2024R
Slide 17: Multiple levers of growth across our strategic verticals
F Multiple levers of growth across our 3 strategic verticals… BUSINESS STABILISATION AND CONTINUED GROWTH GROW MARKET SHARE RETURN TO GROWTH IN DIGITAL FIRST IN UNDERPENETRATED IN MAIN BRAND BRAND B2B MARKET 17
Slide 18: Unlocking digitalisation and AI capabilities
F …further fuelled by unlocking digitalisation and AI capabilities B2C B2B NETWORK ML/AI-powered GenAI-supported Energy-efficient Customer Care as managed services, network leveraging AI a Service replacing cloudification of SMEs Powerstar1 without legacy telephony and workplace compromising on appr
Slide 19: Robust FCF growth and an attractive progressive dividend policy
A robust FCF growth and an attractive progressive dividend policy going forward Targeted progressive Adj. FCF guidance (CHFm) dividend per share policy ~16% De- Tax impact >4102 ≥CHF240m leveraging Dividend to be paid Capex efficient in 20253 Opex Clear growth plan optimisation May 2025 360-3701 1st
Slide 20: Business overview
Business overview Christoph Richartz – Main Brand Chief Consumer Officer Stefan Fuchs – Flanker Brands Chief Consumer Officer Thorsten Haeser – Chief Business Officer 2
Slide 21: Our strategy is underpinned by well-defined targets
Our strategy is underpinned by well-defined targets to deliver Sunrise’s long-term vision GAIN MARKET SHARE DEVELOP MORE RGU’S DEVELOP NEW IN CORE SEGMENT & EXTRA OPTIONS ADJACENT SERVICES PER CUSTOMER FOR FURTHER GROWTH Leading Gross adds, FMC, Value-added fully-converged multi-mobile services chal
Slide 22: Strong portfolio of brands supports leading challenger position
Strong portfolio of brands support leading challenger position, strategically addressing each market segment Our multi-brand strategy targets different segments of the market Brand proposition % Estimated % of market1 High • Main brand - strong challenger of Swisscom • Well-established premium posit
Slide 23: Three strategic pillars define our differentiated growth engine
Three strategic pillars define our differentiated growth engine Business Main consumer brand Digital consumer brand Stabilisation and return to growth Continuation of growth Acceleration of market share growth ⚫ Premium product based on state-of- ⚫ Smart shopper positioning offering ⚫ Win market sha
Slide 24: Business overview – Main Brand
Business overview – Main Brand Christoph Richartz – Main Brand Chief Consumer Officer 2a
Slide 25: Three strategic pillars define our differentiated growth engine
Three strategic pillars define our differentiated growth engine Business Main consumer brand Digital consumer brand Stabilisation and return to growth Continuation of growth Acceleration of market share growth ⚫ Premium product based on state-of- ⚫ Smart shopper positioning offering ⚫ Win market sha
Slide 26: Multiple levers to continue gaining market share
Sunrise has multiple levers to continue gaining market share and improving customer preference ⚫ Innovative product portfolio based on r emium product state-of-the art networks P positioning ⚫ Reinforced Sunrise brand with high-profile sponsorships & prominent brand ambassadors ⚫ Expand portfolio of
Slide 27: Strong core product portfolio complemented by innovative adjacencies
Strong core product portfolio complemented by innovative adjacencies with a clearly defined growth outlook Premium Strong and diversified product portfolio… offering Core portfolio -edge cybersecurity Cutting Innovative adjacencies proposition Access agnostic S internet portfolio, in-h Uniq aa om ue
Slide 28: Device as a Service: Tangible opportunity for growth
Device as a Service: Tangible opportunity for growth Premium DaaS overview Developed an exceptional DaaS framework in less than two years… offering Offering tailored to customer needs… Device variety Flexibility DaaS Sustainability Scalability …already delivering outstanding results and creating gro
Slide 29: Partnerships and sponsorships reinforce premium positioning
We have invested in unparalleled partnerships and sponsorships to reinforce our premium positioning Premium offering 29
Slide 30: Exclusive experiences rewarding customer loyalty
We continue to engage with our customers through exclusive experiences, rewarding their loyalty Premium offering Exclusive platform bringing relevant content and unique offers enhancing unparalleled customer experiences Concerts, events & festivals Sports Football Hockey Skiing 30
Slide 31: Multiple levers to continue gaining market share
Sunrise has multiple levers to continue gaining market share and improving customer preference ⚫ Innovative product portfolio based on r emium product state-of-the art networks P positioning ⚫ Reinforced Sunrise brand with high-profile sponsorships & prominent brand ambassadors ⚫ Expand portfolio of
Slide 32: Multi-brand strategy delivers strong customer inflows despite higher churn
Our multi-brand strategy delivers strong customer inflows despite temporarily higher churn related to UPC integration and price increase Customer retention 2021 2022 2023 2024 Key Phase out UPC brand Price rise High churn levels generated developments 1 by several headwinds: Full telco launch • Migr
Slide 33: Clear actions to strengthen customer base and improve churn
We have taken clear actions to strengthen our customer base, significantly improving from the temporarily elevated 2023 churn Customer Blended churn1,2 retention Q2-23 Q2-24 UPC customer migration to Further FMC / Sunrise multi-RGU expansion Operational improvements across UPC and Sunrise base Histo
Slide 34: Successful merger integration – UPC customer migrations behind us
Successful merger integration – heavy lifting of UPC customer migrations behind us Customer Accounts by category evolution (former UPC customer base)1 retention 100% 80% 60% 40% 20% 0% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Today Dec-24 At UPC (out of contract customers) UPC custome
Slide 35: Improving customer satisfaction and investing in customer experience
We have focused on improving customer satisfaction, and we continue investing in customer experience Customer retention Relational net promoter score development • Sunrise and UPC post-merger integration • Price increases in 2023 NPS ambition to become industry rNPS benchmark evolution Jan-23 Today
Slide 36: Multiple levers to continue gaining market share
Sunrise has multiple levers to continue gaining market share and improving customer preference ⚫ Innovative product portfolio based on r emium product state-of-the art networks P positioning ⚫ Reinforced Sunrise brand with high-profile sponsorships & prominent brand ambassadors ⚫ Expand portfolio of
Slide 37: Increased share of customer wallet via FMC and multi-mobile
Increased share of customer wallet expected via FMC and multi-mobile cross/up-selling, enhanced by adjacent services SoW expansion Adjacent services Multi-mobile/ ⚫ Innovative, high-quality product and Value-added-services service additions ⚫ Recent developments: FMC ⚫ “Multi-mobile benefit”: Increa
Slide 38: Sunrise B2C key takeaways
Switzerland’s Sunrise B2C key premium takeaways and scaled challenger – primed for growth and cash returns Strong position in the premium segment underpinned by long-term brand 1 investments Successful merger integration with heavy lifting behind, strengthened customer 2 base 3 Improved retention th
Slide 39: Business overview – Flanker Brands
Business overview – Flanker Brands Stefan Fuchs – Flanker Brands Chief Consumer Officer 2b
Slide 40: Three strategic pillars define our differentiated growth engine
Three strategic pillars define our differentiated growth engine Business Main consumer brand Digital consumer brand Stabilisation and return to growth Continuation of growth Acceleration of market share growth ⚫ Premium product based on state-of- ⚫ Smart shopper positioning offering ⚫ Win market sha
Slide 41: Yallo on a clear growth pathway with full telco proposition
Yallo is on a clear growth pathway underpinned by full telco proposition and a digital-first, price-competitive offering Full telco proposition ⚫ Price-competitive converged offerings ⚫ Outperforming peers leveraging a best-in- class mobile, fibre & HFC infrastructure Smart shopper positioning ⚫ Awa
Slide 42: Yallo’s attractive price / value offering versus competing brands
Yallo brings highly attractive price / value offering compared with competing brands in smart shopper and budget segment Strong Flanker brand with superior position to MVNOs vs. vs. Smart Budget Medium shopper segment Smart • Life-time, smart promotions shopper Price segment • Limited back-book expo
Slide 43: Full telco proposition and no-frills strategy enable Yallo to win
Full telco proposition and no-frills strategy enable Yallo to win in the smart shopper segment Full telco launch in 2022 to continue growth trajectory Full telco operator 2020 2021 Mobile Internet TV • No-frills product portfolio focusing on core customer needs • High performance with 5G on mobile a
Slide 44: Doubling down on fixed boosted the internet base in 2023
Doubling down on fixed boosted the internet base in 2023 – showcasing more growth potential ahead via FMC proposition Insights from Fixed launch Tangible future opportunities in the Fixed market… Customer base evolution 1 Further increase market share & cross-sell to mobile base 2 Defend & attack in
Slide 45: Digital-first telco provider driving effective and efficient operations
Digital-first telco provider driving effective and efficient operations Digitally driven go-to-market Relentless focus on simplicity ⚫ Product & process design for online first (e.g. conversion-friendly checkout) ⚫ Fast adaptation and time to market Physical ~30% Productive ways of working ~70% Digi
Slide 46: Yallo key takeaways
Sunrise Yallo keyB2B takeaways key takeaways Strong position in Smart shopper segment with continued inflow momentum 1 through compelling price / value offering Full telco converged proposition with FMC growth ahead, supported by best-in- 2 class mobile, fibre & HFC infrastructure 3 Attractive margi
Slide 47: Business overview – B2B
Business overview – B2B Thorsten Haeser – Chief Business Officer 2c
Slide 48: Three strategic pillars define our differentiated growth engine
Three strategic pillars define our differentiated growth engine Business Main consumer brand Digital consumer brand Stabilisation and return to growth Continuation of growth Acceleration of market share growth ⚫ Premium product based on state-of- ⚫ Smart shopper positioning offering ⚫ Win market sha
Slide 49: Headroom to expand B2B through our competitive offering
Headroom to expand B2B through our competitive offering Gain Core market share ⚫ Grow underrepresented B2B presence vs. Sunrise B2C market share ⚫ Strong portfolio of products and services strengthened by Sunrise & UPC merger Exploit fast-growing value-added ICT services ⚫ New revenue opportunities
Slide 50: Large opportunity to continue gaining market share in our core segment
Large opportunity to continue gaining market share in our core segment B2B Core telco market share1 Sunrise B2B market share (%) +2.2pp Sunrise core B2B market 3 ,0 00 .00 share growth ’22A-’24E 29% 27% 2 ,8 00 .00 25% 2 ,6 00 .00 23% 21% 2 ,4 00 .00 21.1% 19% 19.3% 2 ,2 00 .00 18.9% 17% 2 ,0 00 .00
Slide 51: Growing ICT market representing an opportunity of ~9x the core market
At the same time, we are entering the growing ICT market representing an opportunity of ~9x of the core market Large opportunity to access value-added ICT services market B2B Telco market including ICT market1 CHFbn 1.2 2.5 1.0 14.5 1.7 9.1 CAGR ’23A-’27E ~10% 22.4 +9x 16.0 3.2 3.3 2023A 2027E Fixed
Slide 52: Broad offering of integrated IT and communications solutions
Broad offering of integrated IT and communications solutions enabled by a strong partner ecosystem Value-added ICT services Cybersecurity Industrial & Cloud enabled solutions automation solutions Comprehensive ICT service portfolio digitizing organisations MDR NEW, 5G SA MPN NEW SaaS, IaaS NEW SCiON
Slide 53: Case study – Migros: winning the largest retailer in Switzerland
Case study – Migros: we have won the largest retailer in Switzerland with our competitive offering Ubiquitous presence across Switzerland Serving the biggest retailer and largest private employer in Switzerland… St. Gallen ✓ >2.2k sites & >2.5k stores Basel Baden ✓ Structured in regional “cooperativ
Slide 54: SMEs to drive market share growth in coming years
SMEs to drive market share growth in coming years – Sunrise is targeting the high value medium segment Well-defined strategy focused largely on the underpenetrated SME segment Medium segment acceleration program focuses on 5 key pillars B2B Swiss market Building 1 Indirect / Partner channel a plan f
Slide 55: Sunrise B2B key takeaways
Sunrise B2B key takeaways key takeaways Tangible opportunity to grow underrepresented B2B market share 1 (vs. Sunrise B2C) 2 Highly competitive FMC product portfolio strengthened by Sunrise-UPC merger Expansion to fast growth value-added ICT services strengthened by prime partner 3 ecosystem Well-de
Slide 56: Business overview key takeaways
Switzerland’s Business overview premium key takeaways and scaled challenger – primed for growth and cash returns Main brand stabilisation and return to growth via a premium product positioning, 1 focus on customer retention and share of wallet expansion Yallo continues growth momentum thanks to full
Slide 57: Q&A
Q&A 57
Slide 58: Break
Break 58
Slide 59: Network & IT
Network & IT Elmar Grasser – Chief Technology Officer Anna Maria Blengino – Chief Information Officer 3
Slide 60: Network
Network Elmar Grasser – Chief Technology Officer 3a
Slide 61: Most comprehensive fixed network access and highest Gigabit coverage in Switzerland
Sunrise is strongly positioned with the most comprehensive fixed network access and highest Gigabit coverage in Switzerland HFC Fibre DSL Key takeaways 55% 27% 1 & utilities Dwellings Exclusive HFC coverage1 ~60% ~40% ~95% network 13% Partners 6% 2 Full access to FTTH & DSL Sunrise Pilot through net
Slide 62: Hybrid strategy ensures cost optimization and strategic optionality
Sunrise’s hybrid strategy ensures cost optimization and provides continued strategic optionality Maximize usage of own HFC & FWA networks Secure & optimize fibre wholesale access Retain optionality for own FTTH build Owned HFC & FWA in total share of base / inflow Average wholesale cost per access l
Slide 63: Future-proof 2.5 Gbps enabled HFC network
Future-proof 2.5 Gbps enabled HFC network, providing excellent customer experience Continuous modernization over years extending network life Delivering tangible customer satisfaction with strong NPS Max download speed (Gbps) Total NPS2 – on similar level Current progress Future potential1 Comparabl
Slide 64: State of the art, fully ducted fibre rich HFC network
State of the art, fully ducted fibre rich HFC network 1 Sunrise’s backbone comprises ~25k km fibre cables and ~40k km coaxial cables Complete fibre-based backbone and transport network with Basel Koblenz St.Gallen Baden significant investments Olten Zürich Wintherthur Wil St.Margrethen already secur
Slide 65: Off footprint, Sunrise leverages its mobile network for Gigabit speeds via FWA
Off HFC/fibre footprint, Sunrise leverages its outstanding mobile network to offer Gigabit speeds through FWA Coverage continuously Significant market opportunity Compelling alternative to DSL improving Number of dwellings without fibre/HFC (mm) Maximum speed (Gbps) 2x ~1.6 1.0 ~1.0 0.51 ~75% Outdoo
Slide 66: Latest innovative in-home technologies providing great customer experience
Latest innovative in-home technologies providing great customer experience State-of-the-art in-home gateways in all Top speed in every corner with Customer satisfaction and continuous access footprints WiFi6 Connect Pods improvement of reliability Reliability NPS1 Internet TV Preparation ongoing for
Slide 67: Robust mobile infrastructure
Robust mobile Sunrise 5G network outdoor coverage infrastructure 4G outdoor 99.9% population coverage 5G basic coverage 98.8% 5G highspeed ~75% coverage Average download ~73 speed Mbps 67
Slide 68: A highly rated mobile network with further improvements to come
A highly rated mobile network with further improvements to come One of the best mobile networks in Europe … …constantly striving to improve 2024 Connect network test results, points on a scale of 1,000 1 1 Less than 2 pp. to #1 Future traffic growth Rated as outstanding by Connect largely on 5G, whi
Slide 69: Well invested 5G network with growth investments already completed
Well invested 5G network with growth investments already completed Number of macro sites (5G/other) 4G/5G data traffic downlink (TB)1 Other sites 5G sites ~18% (CAGR 20’-23’) ~3% (23’-24YTD) 4G +104% ~3.0k ~3.1k ~3.1k ~3.2k ~2.5k 40% 63% 74% 79% 5G ~1.2k 60% 37% 26% 21% 2020A 2021A 2022A 2023A 2020A
Slide 70: Sunrise with sufficient share of spectrum for future growth
Sunrise with sufficient share of spectrum for future growth Sunrise holdings in Mhz and spectrum usage1 Key takeaways % band share2 Expiry Suitability 5G 4G 3G 1 Strategically well High band positioned for ~34% 3500 TDD 100Mhz 2034 ✓ ongoing migration to 5G 2600 FDD 50Mhz 2028 ✓ 2 Mid band 2100 FDD
Slide 71: Benefitting from strong partnerships in Network and IT delivery
Benefitting from strong partnerships in Network and IT delivery Key partners • Fully utilised tower deal with 56% of total • Long-term supplier partnership for Sunrise’s antenna sites accessed through a long term MSA mobile network and a part of its fixed network • Initial term of 20 years until 203
Slide 72: IT
IT Anna Maria Blengino – Chief Information Officer 3b
Slide 73: Sunrise-UPC IT business roadmaps successfully merged and consolidated
Sunrise-UPC IT business roadmaps were successfully merged and consolidated, while maintaining operational stability Business roadmap delivery1 Merger Consolidation Transformation to open architecture 2021 2023 Built in modular services, allowing standard interoperability Synergies Employees Digital
Slide 74: IT strategy supports seamless execution of our business strategy
Our sophisticated and well-designed IT strategy supports a seamless execution of our business strategy INTEGRATION HIGHLY STABLE AND CONSOLIDATION FUTURE-PROOF, AND RESILIENT OF IT LANDSCAPES FIT FOR PURPOSE IT ENVIRONMENT SUCCESSFULY IT ARCHITECTURE WITH A SHORT TIME COMPLETED TO MARKET 74
Slide 75: Network and IT key takeaways
Switzerland’s Network and ITpremium key takeaways and scaled challenger – primed for growth and cash returns Most comprehensive fixed network access and largest Gigabit coverage 1 in Switzerland Future-proof 2.5 Gbps enabled HFC network providing excellent customer 2 experience Complementary hybrid
Slide 76: Sustainability and Governance
Sustainability and Governance André Krause – CEO 4
Slide 77: Sunrise’s strong sustainability achievements
Sunrise’s strong sustainability achievements… ISO 27001 ISO 14001 certified1 CDP2 Sustainability- Improved linked rating from financing3 D to B INAUGURAL SUSTAINABILITY RECOGNISED GLOBALLY REPORT PUBLISHED IN 2024 FOR OUR COMMITMENT Note: 1 International Organization for Standardization (ISO) certif
Slide 78: Clearly defined sustainability targets as part of its strategy
…and clearly defined sustainability targets as part of its strategy PEOPLE PLANET PROGRESS GOVERNANCE Share of women in Reduction of Scope 1 and 2 Maintaining a very high ISO 27001 certification leadership roles ≥25% GHG emissions by 51%, network availability every year4 by 20301 Scope 3 by 30% by 2
Slide 79: Sunrise Board of Directors represents a strong mix of Swiss nationals and strategic leaders
Sunrise Board of Directors represents a strong mix of Swiss nationals and strategic leaders from telecom and media sectors 40 30 25 34 MIKE FRIES ADAM BIRD INGRID DELTENRE THOMAS D. MEYER SUNRISE CHAIR DIRECTOR DIRECTOR DIRECTOR CEO and Co-founder Senior Partner and Global Lead Formerly CEO of Forme
Slide 80: Q&A
Q&A 80
Slide 81: Financial overview
Financial overview Jany Fruytier – Chief Financial Officer 5
Slide 82: Ready to unleash full value-creation potential
Premium and scaled Swiss national challenger – ready to unleash full value-creation potential Outlook Present Past Clear growth plan and Setting up for successful cash flow generation Successful merger spin-off and growth integration • Improved brand positioning • Growth re-acceleration and organiza
Slide 83: Successful merger integration with heavy lifting completed
Successful merger integration with heavy lifting completed and only few milestones left Price Customer increase Brand migration Implemented in 2023 strategy New organiza- tional design Majority done resulting Well set-up with most in an attractive and commercial stable base Synergies investments mad
Slide 84: Sunrise delivered stable performance throughout the UPC base integration
Sunrise delivered stable performance throughout the UPC base integration Key P&L metrics and overview on integration-related costs Highlights CHFm 2021RB 2022RB 2023RB 2022 Revenue 3,042 3,042 3,035 • Stable full year revenue while executing on key Growth (%) - (0.2%) integration milestones Opex 968
Slide 85: Leveraging progress on non-financial KPIs in recent quarters
Leveraging progress on non-financial KPIs in recent quarters to unlock further potential Mobile (postpaid) (#k) Internet (#k) Continued traction from 7 Flanker Brands growth Return to growth driven Net additions 29 23 and Main Brand by churn reduction improvement (1) Q1'23 Q2’23 Q3’23 Q4’23 Q1’24 Q2
Slide 86: Stronger quarterly results with integration efforts largely complete
Stronger quarterly results on the back of operating tailwinds and with integration efforts largely complete All metrics as growth year-over-year in % on rebased basis 2.5% 0.6% Revenue profile peaking in fourth quarter Revenue with strong promotional activity, with latest (0.1%) (1.7%) (1.0%) (0.8%)
Slide 87: Expected 2024 Adj. FCF to improve driven by various factors
Expected 2024 Adj. FCF to improve driven by various factors Adj. FCF (CHFm) Capital Capital Spin-off COGS management related costs Operational savings spend 360-370 Top-line improvements stabilization 353 ✓ Sunrise brand ✓ Phase-out of ✓ Program- ✓ Migration- ✓ Reduced One-off churn restructuring
Slide 88: FY2024 financial guidance reconfirmed but adjusted for one-off costs
Previously communicated FY2024 financial guidance under US GAAP reconfirmed but adjusted for one-off costs Significant Change in US GAAP IFRS (Rebased) adjustments FY 2024 guidance? Revenues Broadly stable No changes Broadly stable (none) Operating lease Stable to low-single Stable to low-single Adj
Slide 89: Sunrise and Liberty Global remain strategic partners on arm’s length terms
Sunrise and Liberty Global will remain strategic partners on arm’s length terms Recurring ~CHF76m Support on wider core network and IT with CHF55m in Opex related elements as well as access to Technology1 and CHF20m in Capex latest pan European entertainment and (reflected in historical connectivity
Slide 90: Solid capital structure pre-spin with clear deleveraging path
Solid capital structure pre-spin with clear deleveraging path post spin-off Target leverage ratios Impact going forward 5.9x Reduced interest payments from lower external debt 4.5x Lower tax shield from reduced interest expense 3.5-4.5x Incremental FinCo tax expense based on new perimeter Leverage L
Slide 91: Path to accelerated cash flow and attractive returns to shareholders
Path to accelerated cash flow post spin-off and deliver attractive returns to Sunrise shareholders Growth Stable Opex Capex efficient Deleveraging Tax impact FCF growth acceleration base 1 2 3 4 5 Stabilization of Stable and efficient Improved Capex Positive net impact Full tax paying Solid FCF grow
Slide 92: Growth acceleration expected from each of the three growth engines
Growth acceleration expected from each of the 1 three growth engines Revenue and customer growth on the back of multi-brand strategy and strong value propositions Revenue Stable to low- B C B2B A single digit growth 2024E Mid-term A ✓ Churn reduction through premium B ✓ Continue market share momentu
Slide 93: Adj. EBITDAaL growth benefiting from scale and stable Opex base
Adj. EBITDAaL growth benefiting from scale 2 and stable Opex base Adj. EBITDAaL margin improvement from leaner organizational design, digitalization and automation efforts Adj. EBITDAaL1 Operational Low-single digit Gross profit B A improvement growth development 2024RB1 Mid-term A ✓ Modest gross pr
Slide 94: Improved Capex profile post integration and 5G investment completion
Improved Capex profile post integration and 5G 3 investment completion Lower P&E additions as % of revenue due to well invested fixed and 5G mobile networks as well as growing top-line P&E additions Baseline 16-18% Lower B Lower A CPE migration ~15% CtC1 product & enablers 2024E Mid-term target A ✓
Slide 95: Impacts from deleveraging, tax and working capital
4 5 Impacts from deleveraging, tax and working capital Deleveraging Tax Working Capital ⚫ Deleverage to expected 4.5x during ⚫ Full tax paying expected from 2028 ⚫ Positive working capital effect in 2024 FY24 via Liberty Global cash injection onwards ⚫ 2025 expected to benefit from positive ⚫ ~17% e
Slide 96: Attractive Adj. FCF profile underpinned by key drivers
Attractive Adj. FCF profile underpinned by 4 key drivers Strong Adj. FCF generation with a robust growth profile over time Adj. FCF (CHFm) 3 Capex 4 Deleveraging 5 Tax impact Stable >410 Growth 2 efficient 1 Opex base 360-370 acceleration 2024E Mid-term target 1 ✓ Stabilized Main Brand 2 ✓ Efficient
Slide 97: Outlook summary
Outlook summary 2024 2025 Mid-term targets Revenue Broadly stable Broadly stable Stable to low-single digit growth Stable to low-single digit Stable to low-single digit Adj. EBITDAaL Low-single digit growth growth growth Capex / revenue 16-18% of revenue 15-16% of revenue ~15% of revenue Adj. FCF1 C
Slide 98: Financial overview key takeaways
Switzerland’s Financial overview premium key and takeaways scaled challenger – primed for growth and cash returns Successful merger integration with strong performance throughout 1 and heavy lifting completed 2 Solid operational set-up in place evidenced by recent quarterly results 3 Clear levers to
Slide 99: Transaction overview
Transaction overview Alex Herrmann – Vice President Investor Relations 6
Slide 100: Transaction overview and timing
Listing on SIX Swiss Exchange Transaction Sunrise incorporated and headquartered in Switzerland overview • Class A: nominal value of CHF0.10 per share listed on SIX Swiss Exchange and timing Two Sunrise • Class B: nominal value of CHF0.01 per share not listed on any exchange1 share Classes1 • One vo
Slide 101: Summary of envisaged distribution
Summary of All Liberty Global shareholders on the envisaged Detailed timeline will be spin-off record date are entitled to receive communicated in due course shares of Sunrise on the effective date distribution Shareholders can either hold US- (See appendix and F-4 for further details) Shareholders
Slide 102: Q&A
Q&A 102
Slide 103: Closing Remarks
Closing Remarks André Krause – CEO 7
Slide 104: Attractive & progressive shareholder returns
Switzerland’s premium and scaled challenger – primed for growth and cash returns A Favourable Swiss macro environment B Attractive telecom market Attractive C Premium and scaled challenger & progressive D High quality and future-fit networks shareholder E Stable business and compelling returns cash
Slide 105: Appendix
Appendix 105
Slide 106: Summary of the envisaged distribution
Transaction overview Financial Operational Glossary Summary of the envisaged distribution Shareholder friendly distribution via ADSs to facilitate efficient settlement mechanics Envisaged distribution structure All Liberty Global shareholders on the spin-off Record Date are entitled to participate i
Slide 107: Rebase Information
Transaction overview Financial Operational Glossary Rebase Information Rebase results, which are non-IFRS measures, are presented as a basis for assessing growth rates on a comparable basis. Rebase information is provided to show the results of the business without the impact of certain acquisition-
Slide 108: Rebase Information – continued
Transaction overview Financial Operational Glossary Rebase Information – continued 108
Slide 109: Rebase Information – continued
Transaction overview Financial Operational Glossary Rebase Information – continued (1) Represents the pre-acquisition revenue, Adjusted EBITDAaL and Adjusted EBITDAaL less P&E additions of Elektra Baselland Telecom (EBLT), which was acquired by Sunrise during 2023, to the same extent that the revenu
Slide 110: U.S. GAAP to IFRS Reconciliations
Transaction overview Financial Operational Glossary U.S. GAAP to IFRS Reconciliations 110
Slide 111: U.S. GAAP to IFRS Reconciliations – continued
Transaction overview Financial Operational Glossary U.S. GAAP to IFRS Reconciliations – continued 111
Slide 112: U.S. GAAP to IFRS Reconciliations – continued
Transaction overview Financial Operational Glossary U.S. GAAP to IFRS Reconciliations – continued 112
Slide 113: U.S. GAAP to IFRS Reconciliations – continued
Transaction overview Financial Operational Glossary U.S. GAAP to IFRS Reconciliations – continued 113
Slide 114: U.S. GAAP to IFRS Reconciliations – continued
Transaction overview Financial Operational Glossary U.S. GAAP to IFRS Reconciliations – continued U.S. GAAP to IFRS Adjustments: Leases: Finance leases are presented as part of right-of-use assets under IFRS whereas finance leases are presented as part of property and equipment, net under U.S. GAAP.
Slide 115: Non-IFRS Reconciliations
Transaction overview Financial Operational Glossary Non-IFRS Reconciliations 115
Slide 116: Non-IFRS Reconciliations – continued
Transaction overview Financial Operational Glossary Non-IFRS Reconciliations – continued 116
Slide 117: Non-IFRS Reconciliations – continued
Transaction overview Financial Operational Glossary Non-IFRS Reconciliations – continued 117
Slide 118: Quarterly P&L
Transaction overview Financial Operational Glossary Quarterly P&L Quarterly P&L 2023A 2024A CHF millions 2021RB Q122 Q222 Q322 Q422 2022RB Q123 Q232 Q323 Q423 2023RB Q124 Q224 (H1) (H1) Revenue 3,042.4 760.1 740.4 765.7 775.7 3,041.9 747.4 733.3 1,480.7 759.1 795.4 3,035.2 746.8 737.5 1,484.3 Growth
Slide 119: Quarterly Revenue split
Transaction overview Financial Operational Glossary Quarterly Revenue split Quarterly Revenue split CHF millions 2021RB 2022RB Q123 Q232 2023A (H1) Q323 Q423 2023RB Q124 Q234 2024A (H1) Revenue 3,042.4 3,041.9 747.4 733.3 1,480.7 759.1 795.4 3,035.2 746.8 737.5 1,484.3 Growth % (0.0%) (1.7%) (1.0%)
Slide 120: Operational KPIs – Customer relationships
Transaction overview Financial Operational Glossary Operational KPIs – Customer relationships Customer Relationships 2021 2022 Q123 Q232 2023H1 Q323 Q423 2023H2 2023 Q124 Q224 2024 H1 Fixed Customer Relationships represent the number of customers who receive at least one of Sunrise’s broadband inter
Slide 121: Operational KPIs – Base RGUs
Transaction overview Financial Operational Glossary Operational KPIs – Base RGUs Base RGUs1 2021 2022 Q123 Q232 2023H1 Q323 Q423 2023H2 2023 Q124 Q224 2024 H1 Internet Subscribers are homes, residential multiple dwelling units or commercial units that receive fixed broadband Broadband Internet inter
Slide 122: Operational KPIs – ARPU Residential
Transaction overview Financial Operational Glossary Operational KPIs – ARPU Residential ARPU (Residential) 2021 2022 Q123 Q232 2023H1 Q323 Q423 2023H2 2023 Q124 Q224 2024 H1 Subscription Revenue CHFm 1,956 1,934 469 468 937 486 474 959 1,896 460 459 919 Fixed CHFm 1,125 1,080 263 260 522 263 258 521
Slide 123: Glossary
Transaction overview Financial Operational Glossary Glossary 5G SA MPN 5G Standalone Mobile Private Network FTTH Fibre to the Home MVNO Mobile Virtual Network Operator ARPU Average Revenue Per User FTE Full-time Equivalent NPS Net Promoter Score B2B Business to Business FWA Fixed Wireless Access QoE
Sunrise Communications — Investor Day (September 2024) on 6ix