Sunrise Communications Ag Class A · SIX:SUNN
Sunrise Communications Ag Class A — FY2010 Earnings Presentation
20 slides from Sunrise Communications Ag Class A's earnings presentation, Mar 24, 2011
Slide 1: Financial Results January – December 2010
March 24, 2011 Sunrise Communications Holding S.A. Financial Results January – December 2010
Slide 2: Key messages
Key messages Sunrise achieved strong financial results according to guidance given: • Revenue increased to CHF 2'052m or + 2.9%. • Significant EBITDA growth from CHF 498m to 542m (+ 8.8%) thanks to accelerated growth of mobile customer base, margin improvements and tight cost controls. • Mobile post
Slide 3: Overview of results
Overview of results Income statement Year to date Quarter to date [CHFm] 2010 2009 Q4'10 Q4'09 Mobile 1'233 1'151 324 294 Landline Services 643 660 156 170 of which hubbing 203 188 51 52 Landline Internet 177 183 45 46 Revenues 2'052 1'994 525 510 % growth 2.9% - 2.9% - EBITDA 542* 498 121 136 % mar
Slide 4: Revenue and Gross profit development
Revenue and Gross profit development Comments Revenue Gross Profit in 1'000 CHF 1'800 1'900 2'000 2'100 2'200 1'000 1'100 1'200 1'300 1'400 2009 +1'994 +1'242 Postpaid +43 +41 Mobile: Higher customer base leads to revenue Prepaid -3 +5 growth. Lower termination prices allow better gross profit margi
Slide 5: Operating Free Cash Flow
Operating Free Cash Flow Operating free cash flow Comments [CHFm] 2010 2009 EBITDA 542 498 EBITDA: The growth in EBITDA of 8.9%, from 498 CHFm % margin 26.4% 25.0% to 542 CHFm is stemming from higher revenues due to % margin (excl. Hubbing) 29.0% 27.5% net customer gain and savings on cost of sales
Slide 6: Operational Trends
Operational Trends © Sunrise March 24, 2011 6
Slide 7: Operational Trends: Mobile
Operational Trends: Mobile Comments ‘000 Subscriber ARPU (CHF) Mobile subscribers up 8.2% YoY driven 8.2% by especially by strong intake of 2‘015 postpaid. -4.9% 1‘863 Sunrise launched its iPhone offering at 46.7 44.4 the end of July, 2010 and could benefit from the introduction in Q4-2010. 995
Slide 8: Mobile: Successful iPhone sales
Mobile: Successful iPhone sales Comments New customer acquisition Customer reception was very positive, and 100% accounted for Sunrise’s data network quality. On new customer acquisitions, the share of other smart phones was only slightly impacted. Sale to new customers has improved and is now sligh
Slide 9: Mobile: Marketing spend and quality of customers gained
Mobile: Marketing spend and quality of customers gained Comments Postpaid Mobile Total Customer Value The increase in marketing spending for the iPhone last 4 month of the year resulted also in an increase in customer contract value due: Increasing customer base Increasing share of 24 month cont
Slide 10: Operational Trends: Landline Retail Bundles (ADSL and retail Voice)
Operational Trends: Landline Retail Bundles (ADSL and retail Voice) Comments ‘000 Subscriber ARPU/AMPU (CHF) Double play connections (landline retail voice 2.9% -1.9% and ADSL) have grown 2.9% YoY driven by 350 340 82.6 81.1 Attractive bundle prices including line rental, voice services and xDSL
Slide 11: Operational trends: Landline Retail Voice
Operational trends: Landline Retail Voice Comments ‘000 Subscriber ARPU (CHF) Low margin CPS Voice customers – -10.1% mostly acquired as part of the Tele 2 acquisition - continue to churn to double 635 1.6% play products, off the Sunrise network or 571 are substituting their service with mobile 44
Slide 12: Net Debt at 31. December 2010
Net Debt at 31. December 2010 Pro-forma post Transaction close 31. Dec. 2010 million CHF million CHF Term Loan A 500 500 Term Loan B 321 312 Senior Secured Notes 808 765 Total Senior debt 1,629 1,577 Senior Notes 769 704 Total debt 2,398 2,281 Fair value of cross currency swaps (22) 95 Adjusted debt
Slide 13: Market Updates
Market Updates © Sunrise March 24, 2011 13
Slide 14: CEO Agenda – Objective 2014
CEO Agenda – Objective 2014 Sunrise aims for achieving a clear positioning and sound performance around Customer Excellence, Excellence in Operations and Entrepreneurial culture Sunrise – customer focused, agile & young, responsive, service and quality oriented, innovative Excellence in Customer Exc
Slide 15: Market Updates
Market Updates Sunrise retail outlet stores Sunrise will extend its current retail outlet stores from 81 to about 100 Sunrise centers in 2011. This strategy increases the importance of this sales channel even further. Business Sunrise – a new brand of Sunrise Launched in Q1’2011 to emphasize the foc
Slide 16: Status of Mobile License Award Procedure
Status of Mobile License Award Procedure • 30 November 2010: Publication of the invitation to tender • All current Sunrise licenses won’t be changed or affected: GSM/UMTS 900 and 1800 MHz will be valid until end of 2013, UMTS 2100 MHz until end of 2016 • LTE spectrum will be partially available afte
Slide 17: Backup
Backup © Sunrise March 24, 2011 17
Slide 18: Pro-forma cash flow versus IFRS cash flow for 2010
Pro-forma cash flow versus IFRS cash flow for 2010 Pro-forma 2010 cash flow is not representative of the Sunrise‘s future cash flow generation due to: • Pro-forma is based on the assumption that the transaction took place 01.01.2009. • Intercompany payments to previous shareholder and dividends have
Slide 19: Disclaimer
Disclaimer This Presentation and any materials distributed in connection herewith (the "Presentation") include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, S
Slide 20: Thank you
Thank you © Sunrise March 24, 2011 20
Sunrise Communications Holding — FY2010 Earnings Presentation on 6ix