Swisscom Ag · SIX:SCMN
Swisscom — Debt Investor Presentation (May 2024)
31 slides from Swisscom's debt investor presentation, May 2024
Slide 1: Bond Investor update May 2024
Bond Investor update May 2024
Slide 2: Agenda
Agenda 1. Swisscom at a glance p. 3 2. Swisscom strategy p. 4 3. Financial highlights FY 2023 p. 10 4. Acquisition of Vodafone Italia p. 17 5. Q1 2024 performance p. 22 6. Wrap-up p. 26 Appendix p. 28 2
Slide 3: Swisscom at a glance
1 Swisscom at a glance Swisscom is… Key financials (FY 2023) #1 in the Swiss Telecoms market with the Net debt / Employees Revenue EBITDA margin Net Income EBITDA FCF (FTEs) strongest brand Leading challenger in Italy with continuous growth CHF 11.1bn 41.7% CHF 1.7bn 1.5x CHF 1.5bn 19'729 for over 1
Slide 4: Swisscom strategy
isscom strategy Sw AANA iv perenne \\
Slide 5: The Swisscom group story
2 1 The Swisscom group story Our Purpose Empowering the digital future Our Vision Innovators of Trust The most trusted Swiss tech innovator creating unique customer experiences with positive impact for society. Our Values 5 trustworthy, committed, curious
Slide 6: The Swisscom group goals
2 The Swisscom group goals Our business and financial ambitions 2024 Trusted leader Rock-solid Outstanding Pioneer in High- in digital life and financials in innovation sustainability performing business reliability teams • Number 1 in • Long-term value • Innovative growth • Net-zero emissions • Bes
Slide 7: The Swisscom group strategy
2 The Swisscom group strategy Delight Innovate Achieve more Perform customers for growth with less together Create unique Deliver digital products Drive transformation Develop ourselves customer and at pace with AI, and our experiences services of digitalization collaboration every day the future an
Slide 8: The Swisscom strategy for Switzerland and Italy
2 The Swisscom strategy for Switzerland and Italy How we achieve our vision Delight Innovate Achieve more Perform customers for growth with less together Strong brand play and quality Future-proof networks with High efficiency driven by AI and Performance culture through positioning through enhanced
Slide 9: Committed to sustainability for a quarter of a century
2 Committed to sustainability for a quarter of a century Successful in performance and ambitious in targets Our achievements Our strategy Our journey to net-zero CDP Sustainalytics Climate change rating ESG risk rating Industry Top-rated A Rating 16.8 (low risk) Environment People Digital Society Ne
Slide 10: Financial highlights FY 2023
3 1 Financial highlights FY 2023 10
Slide 11: Achievements FY 2023
3 1 Achievements FY 2023 Another successful year with many highlights along our group goals Delivered Strong delivery again in innovation Satisfying operational results and financial Launch of several next generation services and targets achieved non-stop investments in future-proof network Leading
Slide 12: Operational performance FY 2023
3 1 Operational performance FY 2023 Satisfying results with total RGU base being stable in Switzerland and growing in Italy Swisscom Switzerland Fastweb Net adds in k Fixed +108 +422 +190 +129 +13 -21 -34 -82 -96 Postpaid Broadband TV Fixed voice Wholesale Mobile Broadband Wholesale RGUs1 5'275 1'53
Slide 13: Financial results FY 2023
3 1 Financial results FY 2023 Rock-solid financial performance with higher EBITDA, free cashflow and net income Key figures EBITDA in CHF mn, YOY in CHF mn, YOY Revenue EBITDA EBITDA in % EBITDAaL EBITDA 4'406 2022 11'072 4'622 41.7% 4'334 +4.9% +1.8pp Swisscom +0.2% +5.2% +8 Switzerland CAPEX CAPEX
Slide 14: Free cash flow
3 Free cash flow Solid FCF generation, slightly higher compared to 2022 in CHF mn FY 23 (+9.7%) 4’622 -288 4'334 -2'292 2'042 -133 -31 -77 -313 -8 1'480 Δ +216 -2 +214 +17 +231 -69 -80 -17 +65 +1 +131 1 2 3 FY 22 4’406 -286 4'120 -2'309 1'811 -64 +49 -60 -378 -9 1'349 EBITDA Lease EBITDAaL CAPEX OpF
Slide 15: Capital expenditures
3 Capital expenditures Group CAPEX in line with FY guidance of CHF ~2.3bn Group CAPEX FY 2023 in CHF mn (YOY) Group CAPEX of CHF ~2.3bn reaches 21% of revenue, with investments in: o Wireless network (incl. investments in 5G+ coverage Swisscom extension) Fastweb o Wireline network (incl. Fiber roll-
Slide 16: Swisscom committed to sound financial profile
3 Swisscom committed to sound financial profile Well balanced and diversified maturity profile Net debt development FY 2023 (in CHF mn) Leverage 1.5x (-0.2x)2 as of FY 2023 7'374 1'140 63 7'071 -26 -1'480 Credit S&P: A positive (FY 2023) ratings3 Moody's: A1 stable (FY 2023) Net debt FCF Dividends M
Slide 17: Acquisition of Vodafone Italia
4 1 Acquisition of Vodafone Italia 17
Slide 18: A unique opportunity to create a leading converged challenger in Italy
4 A unique opportunity to create a leading converged challenger in Italy Swisscom to acquire Vodafone Italia for EUR 8.0bn EV and combine it with Fastweb • Acquisition of 100% of Vodafone Italia, fully consolidated and controlled as of closing Transaction • Purchase price of EUR 8.0bn (EV), 100% deb
Slide 19: Combined entity will be a sizeable #2 in the market with the necessary scale
4 Combined entity will be a sizeable #2 in the market with the necessary scale … to be profitable, innovate, invest and compete effectively with the incumbent 9.2 #2 4.3 Revenue in EUR bn1 7.3 1.0 ServiceCo - Domestic Combined #1 EBITDAaL 1.8 in EUR bn1 1.3 2.42 0.3 ServiceCo - Domestic Combined CAP
Slide 20: Strategically stronger, financially rock-solid
4 Strategically stronger, financially rock-solid Transaction strengthens Swisscom's profile in Italy and adds FCF growth to its rock-solid financials Group goals Trusted Leader in Outstanding in Rock-solid Pioneer in High-performing digital life & business innovation & reliability financials sustain
Slide 21: Swisscom committed to maintain sound financial profile also after closing
4 Swisscom committed to maintain sound financial profile also after closing • "Status as the leading integrated telecom operator in Switzerland with Leverage Post-closing target: strong market shares across all segments" at 2.4x by YE 20271 Issuer Rating: A1 Outlook: • "High-quality network and stro
Slide 22: Q1 2024 performance
5 1 Q1 2024 performance 22
Slide 23: Highlights
5 Highlights The Italian transaction as key highlight Satisfying Following Growing Acquisition of Q1 results value over price with Fastweb Vodafone Italia and as expected in Switzerland in Italy and merging with Fastweb • Top line slightly lower • Operationally mixed • Growing across KPIs • Attracti
Slide 24: Operational performance
5 Operational performance Mobile growing. Fixed broadly stable in Switzerland and increasing in Italy Swisscom Switzerland Fastweb Fixed -3 +102 Fixed +53 +72 +10 +12 Net adds in k Q1 24 -15 -11 -19 -23 Postpaid Broadband TV1 Fixed voice Wholesale Mobile Broadband Wholesale RGUs 5'360 1'991 1'526 1'
Slide 25: Financial results
5 Financial results EBITDA development as expected and OpFCF lower due to seasonally higher capital expenditures Q1 24 key figures Q1 24 EBITDA development in CHF mn in CHF mn, YOY Margin Margin 42.4% Underlying -18 (-1.5%) 42.7% Revenue 2'703 1’164 +9 (-1.6% YOY) +4 1’155 (-0.8%) -19 -3 -9 EBITDA 1
Slide 26: Wrap-up
6 Wrap-up 26
Slide 27: Key credit highlights
6 Key credit highlights Innovators of trust with rock-solid financials #1 in Leading Telecoms operator in Switzerland with strong market shares across all segments Switzerland Leading challenger in Italy Continuous growth in Italy where it is a leading challenger High-quality network, strong brand a
Slide 28: Appendix
Appendix 28
Slide 29: Key financials
Key financials In CHF mn FY 2022 FY 2023 YOY Revenue 11'051 11'072 +0.2% EBITDA 4'406 4'622 +4.9% EBITDA adjusted1 4'558 4,638 +1.8% Net income 1'603 1'711 +6.7% Free Cash Flow 1'349 1'480 +9.7% CAPEX 2'309 2'292 -0.7% Net debt 7'374 7'071 -4.1% 29 1) Adjusted for provisions for regulatory litigatio
Slide 30: 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 30
Slide 31: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to buy or acquire any securities of Swisscom AG (“Swisscom”) or any of its subsidiaries in any jurisdiction or an