Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — FY2014 Earnings Presentation

34 slides from Sunrise Communications Ag Class A's earnings presentation, Mar 26, 2015

  1. Slide 1: FY 2014 Financial Results

    Sunrise Communications Holdings S.A. FY 2014 Financial Results Sunrise Communications Group AG Update post IPO

  2. Slide 2: 2014 Highlights

    2014 Highlights • Delivering growth on the back of innovative product launches and strong improvements in network quality and customer experience • 4.9% growth of mobile postpaid customers (+61.9k, with +16.4k net adds in Q4'14) • Turnaround in internet broadband subscriber development with first qu

  3. Slide 3: Agenda

    Agenda Sunrise Communications Holdings S.A. 1 Sunrise 2014 – Delivering growth Libor Voncina (CEO) 2 Results FY 2014 Andre Krause (CFO) Sunrise Communications Group AG 3 IPO and Refinancing Andre Krause (CFO) 4 Market Update Timm Degenhardt (CMO) 5 Outlook Libor Voncina (CEO) 6 Q&A © Sunrise 26.03.2

  4. Slide 4: 2014 – Delivering Growth

    2014 – Delivering Growth +61.9k Postpaid net additions1 ~37% Freedom customers Innovative offering +32.8k IPTV net additions1 Turnaround Broadband with Revenue: +1k net additions in Q4’14 +3.1% growth1 to CHF 2’084 CHF 356 million peak investment into million Network: Awarded Adjusted 99.9% GSM/EDGE

  5. Slide 5: 2014 – Successful brand positioning with Roger Federer as Sunrise Ambassador

    2014 – Successful brand positioning with Roger Federer as Sunrise Ambassador Accelerates brand awareness with a partnership that makes sense Ideal match as Roger Federer stands for Sunrise corporate values: √ Fairness √ Transparency √ Customer Orientation Builds trust and awareness associating our b

  6. Slide 6: Successful IPO and Refinancing

    Sunrise Communications Group AG Successful IPO and Refinancing First day of trading on the SIX Swiss Stock Exchange on February 6th, 2015 Primary proceeds of CHF 1.36 billion used to strengthen the balance sheet Highly successful refinancing Remaining gross debt refinanced in two tranches, one in pa

  7. Slide 7: Agenda

    Agenda Sunrise Communications Holdings S.A. 1 Sunrise 2014 – Delivering growth Libor Voncina (CEO) 2 Results FY 2014 Andre Krause (CFO) Sunrise Communications Group AG 3 IPO and Refinancing Andre Krause (CFO) 4 Market Update Timm Degenhardt (CMO) 5 Outlook Libor Voncina (CEO) 6 Q&A © Sunrise 26.03.2

  8. Slide 8: Mobile subscriptions and ARPU momentum

    Mobile subscriptions and ARPU momentum Mobile subscriptions (‘000) Blended ARPU (CHF) 2,494 2,491 2,477 2,487 2,496 2,465 2,137 2,142 41.0 41.9 39.6 1,233 1,202 1,199 1,193 1,145 36.5 37.0 35.8 1,261 34.9 35.4 941 925 36.8 37.5 36.2 33.0 31.5 31.9 33.7 32.3 1,067 1,078 1,090 1,104 1,120 1,045 1,049

  9. Slide 9: Prepaid subscriptions development

    Prepaid subscriptions development Pro-forma prepaid subscriptions Prepaid subscriptions - 3 month rule - - 12 month rule - -48 -24 • For transparency 1,233 1,202 1,199 2,016 1,994 1,965 1,193 reasons, prepaid 1,936 1,912 1,145 subscriptions based on a 12 month activity rule are provided • 3 month ac

  10. Slide 10: Landline internet subs. and ARPU momentum

    Landline internet subs. and ARPU momentum Subscriptions (‘000) Internet and Sunrise TV ARPUs (CHF) +3.5 (+8%) 348 340 +1.0 330 326 327 (+3%) 46.4 47.2 47.2 45.3 43.7 39.0 39.7 39.9 39.3 38.3 274 257 241 229 220 89 97 107 74 83 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Internet only

  11. Slide 11: Revenue and EBITDA growth

    Revenue and EBITDA growth Revenue and EBITDA 1 (CHFm) Impact of Freedom on gross profit (CHFm) Reported growth 62.3 26.5 17.6 +3.1% +4.3% +2.8% +4.7 2’084 Pre-Freedom Post-Freedom 2’021 (0.3) 640 0.0 614 620 638 (5.3) (5.4) (7.9) (9.5) (9.5) (9.8) (11.1) (12.6) (12.3) (14.3) Q1’13 Q2’13 Q3’13 Q4’13

  12. Slide 12: Overview of results – P&L

    Overview of results – P&L Financial Results FY 2014 FY 2013 Q4'2014 Q4'2013 CHF million Mobile 1'358 1'266 368 323 Landline Services 521 558 138 143 of which hubbing 163 149 47 39 Landline Internet 204 198 51 51 Total revenues 2'084 2'021 556 517 % yoy growth 3.1% 7.6% Revenues (excl. hubbing) 1'921

  13. Slide 13: Overview of results – Cash Flow

    Overview of results – Cash Flow Cash Flow FY 2014 FY 2013 Q4'2014 Q4'2013 CHF million EBITDA 640 614 167 151 Change in net working capital (53) 67 30 51 Movement in pension and provisions (3) (7) (1) - Interest (paid) / received, net (163) (172) (77) (79) Corporate income and withholding tax (paid)

  14. Slide 14: Capital expenditure breakdown

    Capital expenditure breakdown CAPEX 2014 vs. 2013 (CHFm) CAPEX split (CHFm) +75 (+26.7%) 356 356 Extra-ordinary 281 281 ~126 investments 213 Mobile ~60 187 Normalized ~221 ~230 investments 119 Landline 64 IT, Shops & 30 24 Other 2013 2014 2013 2014 • Peak spending year for Capex investments • Extra-

  15. Slide 15: Net debt and leverage ratio

    Net debt and leverage ratio Net debt Dec 31, 2014 Dec 31, 2013 CHF million Senior Secured Notes 746 755 Senior Secured Notes issued July 2012 520 523 Floating Rate Notes issued July 2012 201 205 Senior Unsecured Notes 675 689 Utilized RCF 73 95 Total cash-pay borrowings 1 2'215 2'267 Fair value of c

  16. Slide 16: Agenda

    Agenda Sunrise Communications Holdings S.A. 1 Sunrise 2014 – Delivering growth Libor Voncina (CEO) 2 Results FY 2014 Andre Krause (CFO) Sunrise Communications Group AG 3 IPO and Refinancing Andre Krause (CFO) 4 Market Update Timm Degenhardt (CMO) 5 Outlook Libor Voncina (CEO) 6 Q&A © Sunrise 26.03.2

  17. Slide 17: Successful IPO and Refinancing

    Sunrise Communications Group AG Successful IPO and Refinancing First day of trading on the SIX Swiss Stock Exchange on February 6th, 2015 • 33.4m shares free float, out of 45m shares • CVC ownership reduced to ~25% Highly successful refinancing • Refinancing completed within one week after IPO • Con

  18. Slide 18: Group Structure

    Sunrise Communications Group AG Group Structure Sunrise Listed and group Communications Group reporting entity AG from Q1’15 (CH) 100.0% Mobile Challenger Intermediate Group S.A. (Lux) 100.0% Sunrise Senior Secured Notes Group reporting Communications CHF 500m 2.125% entity until Q4’14 Holdings S.A.

  19. Slide 19: Change and impact of new capital structure

    Change and impact of new capital structure Pro-forma post IPO net debt (CHFbn) Interest cost impact (CHFm) Reported ND / EBITDA (x) 4.6x 2.7x 2.905 ~(170) (~-79%) 215 (1.181) 1.747 23 Impact of pre-IPO leverage WACD: and interest cost ~7.1% ~62 ~45 WACD: 2.4% Q4’14 Deleveraging Cash Jan-Feb’15 Pro-f

  20. Slide 20: Capital structure post IPO

    Capital structure post IPO Pro-forma capitalization post IPO and Refinancing Margin / Current Call Facility CHFm Maturity Call Price Call schedule Coupon price date RCF (CHF200m) 0 C+2.0% Feb’2020 Term Loan B 1’360 C+2.5% Feb’2021 CHF Fixed Rate SSNs 500 2.125% Feb’2022 NC Mar-18 101.063%, 100.531%,

  21. Slide 21: Agenda

    Agenda Sunrise Communications Holdings S.A. 1 Sunrise 2014 – Delivering growth Libor Voncina (CEO) 2 Results FY 2014 Andre Krause (CFO) Sunrise Communications Group AG 3 IPO and Refinancing Andre Krause (CFO) 4 Market Update Timm Degenhardt (CMO) 5 Outlook Libor Voncina (CEO) 6 Q&A © Sunrise 26.03.2

  22. Slide 22: During 2014 we delivered an innovative portfolio with focus on operational excellence

    During 2014 we delivered an innovative portfolio with focus on operational excellence and customer experience …with strong focus on customer service An innovative portfolio “that makes sense”... driving… …significant improvements in main customer experience touch points • New MTV Mobile & Home: MTV

  23. Slide 23: In 2015 we continue to deliver innovative and customer oriented services

    In 2015 we continue to deliver innovative and customer oriented services Customers looking for…. Q1 2015  Shared Data with Sunrise Freedom, a mobile plan for smartphone and tablet  Yallo Postpaid: Dedicated offer for the • Fairness ethnic segment  Hot from USA: The latest season of best rated sho

  24. Slide 24: Shared Data – Freedom, a mobile plan for smartphone and tablet

    Shared Data – Freedom, a mobile plan for smartphone and tablet Sunrise focused on offering the best data Sunrise Freedom – Shared Data plan • Network strategy focused on providing a  Fair: high-speed network everywhere and • Share the data volume of the mobile tariff ensuring best-in-class customer

  25. Slide 25: Yallo Postpaid – Positioning yallo as the leading Swiss provider

    Yallo Postpaid – Positioning yallo as the leading Swiss provider for best-value international mobile calls Yallo Postpaid … …leveraging on three different offers A response to customer’s demand: • International minutes with highest relevance • Demand for higher data usage • Success and high acceptan

  26. Slide 26: B2B – Well positioned with good momentum

    B2B – Well positioned with good momentum Good positioning – good momentum Full offering range of Business Products SoHo/Small Enterprise Internet/ fixed Mobile Devices • Only alternative full service provider to Cloud Swisscom • Strong reputation for high quality services, Carrier personalised solut

  27. Slide 27: Agenda

    Agenda Sunrise Communications Holdings S.A. 1 Sunrise 2014 – Delivering growth Libor Voncina (CEO) 2 Results FY 2014 Andre Krause (CFO) Sunrise Communications Group AG 3 IPO and Refinancing Andre Krause (CFO) 4 Market Update Timm Degenhardt (CMO) 5 Outlook Libor Voncina (CEO) 6 Q&A © Sunrise 26.03.2

  28. Slide 28: Outlook

    Outlook • 2014 marked an inflection point for Sunrise as evidenced by the return to growth since Q2'14 • Significant investments in network quality, customer experience and innovative product portfolio led to strong commercial momentum • Current trading shows continued momentum in line with our expe

  29. Slide 29: Agenda

    Agenda Sunrise Communications Holdings S.A. 1 Sunrise 2014 – Delivering growth Libor Voncina (CEO) 2 Results FY 2014 Andre Krause (CFO) Sunrise Communications Group AG 3 IPO and Refinancing Andre Krause (CFO) 4 Market Update Timm Degenhardt (CMO) 5 Outlook Libor Voncina (CEO) 6 Q&A © Sunrise 26.03.2

  30. Slide 30: Contact information

    Contact information Investor Contact Media contact Sunrise Communications Group AG Sunrise Communications Group AG Uwe Schiller Stefan Kern Head of Investor Relations Head of Corporate Communications uwe.schiller@sunrise.net stefan.kern@sunrise.net +41 58 777 96 80 +41 58 777 76 66 Thank you for you

  31. Slide 31: Appendix

    Appendix

  32. Slide 32: Pro-forma Equity Free Cash Flow

    Pro-forma Equity Free Cash Flow Group 3 Cash Flow MCIG Group 3 SCH 1 MCIG 2 pro-forma 4 FY 2014 pro-forma pro-forma adjustments CHF million EBITDA 640 (1) 639 - 639 Change in net working capital (53) 1 (52) - (52) Movement in pension and provisions (3) - (3) - (3) Interest (paid) / received, net (16

  33. Slide 33: 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

  34. Slide 34: Thank you

    Thank you

Sunrise Communications Group — FY2014 Earnings Presentation on 6ix