Sunrise Communications Ag Class A · SIX:SUNN
Sunrise Communications Ag Class A — Sunrise Communications A — Q3 2024 Earnings Presentation
33 slides from Sunrise Communications Ag Class A's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 Financial Results 30 October 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 Offer t
Slide 3: Today's agenda
Today’s agenda STRONG COMMERCIAL MOMENTUM 1 • • Commercial actions and campaigns further strengthened premium positioning with new bundle offers Net Adds momentum accelerated with increased activations and lower churn, reaching strong postpaid Net Adds in Q3 2024 Q3 FINANCIALS ON TRACK AND IN LINE W
Slide 4: Strong commercial momentum
Strong commercial momentum Sunrise Q3 2024 Results | 30 October 2024 4
Slide 5: Q3 Highlights – B2C Main Brand
Q3 Highlights – B2C Main Brand Further strengthening premium positioning, customer loyalty and innovation Speed Upgrade New Campaign More for More Pricing • Upgrade of Sunrise’s owned HFC • Sunrise launched sequel of its • “Swiss Travel+” price plan network to 2.5 Gbit/s downstream successful spring
Slide 6: Q3 Highlights – B2C Main Brand
Q3 Highlights – B2C Main Brand Flex Premium Bundle offers unique value proposition for our new and existing customers With Flex Premium Bundle always the latest smartphone and your mobile subscription at an unbeatable price forever • For everyone: New and existing customers • Always the newest smart
Slide 7: Q3 Highlights – B2C Flanker Brand
Q3 Highlights – B2C Flanker Brand yallo with continued strong growth and focus on quality Continued Momentum Increased Presence Enhancing Full Telco Positioning • Milestone of 1m RGUs surpassed • Footprint expansion with new • Highest quarterly Internet NPS in 18 • Stable level of competitive prime
Slide 8: Q3 Highlights – B2B
Q3 Highlights – B2B Continued customer wins while new quality awards underpin our strong offering Continued customer wins Certified Quality Cycling World Championships 2024 • Various renewals and new • Sunrise achieved ISO 22301 • Sunrise supported the 2024 customer wins in Q3 across mobile certific
Slide 9: Q3 Commercial Highlights
Q3 Commercial Highlights Commercial momentum reflected in strong net additions 48 27 27 23 29 Strong Inflow Momentum on the back of an attractive Product Offering and New Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Postpaid 10 Product Launches 7 Additions1 2 5 in k Internet -4 Focus on Customer Rete
Slide 10: Q3 financials on track and in line with updated FY 2024 guidance
Q3 financials on track and in line with updated FY 2024 guidance Sunrise Q3 2024 Results | 30 October 2024 10
Slide 11: Q3 Financial Highlights
Q3 Financial Highlights Slight revenue decrease compensated by higher profitability and acceleration in cash flows Key Financials in CHFm, YoY Q3 2023 Q3 2024 Δ 9M 2023 9M 2024 Δ • Modest YoY decrease in Q3 2024 revenue as decline in Main Brand is partly compensated by Revenue 759 749 (1.3%) 2’240 2
Slide 12: Revenue and Adj. EBITDAaL
Revenue and Adj. EBITDAaL Revenue decline offset by Opex savings, leading to slightly increasing adj. EBITDAaL YoY Revenue Adj. EBITDAaL1 in CHFm, YoY in CHFm, YoY (10) +1 (1.3%) +0.4% 759 273 (3) 274 749 Consumer Residential 10 (1) (25) 2 B2B & WHS (16) 13 Infra & Support 10 Q3 2023 Q3 2024 Q3 Gros
Slide 13: Adj. EBITDAaL less P&E Additions and Adj. FCF
Adj. EBITDAaL less P&E Additions and Adj. FCF Lower Capex including Cost-to-Capture phase-out, leading to strong cash flow generation Adj. EBITDAaL less P&E Additions Adj. FCF in CHFm, YoY Δ in CHFm, YoY Δ (CHF / %) (CHF / %) Adj. EBITDAaL 391 +21 / +5.3 412 Adj. EBITDAaL 273 1 / 0.4 274 Less P&E Ad
Slide 14: Guidance 2024
Guidance 2024 On track and in line with updated FY 2024 Guidance on all metrics 2023 Reported (pre-rebasing for 2024) 2024 Guidance (IFRS, rebased) Revenue CHF 3,035m Broadly stable Stable to low-single digit Adj. EBITDAaL1 CHF 1,030m growth Capex / revenue 17.7% of revenue 16 - 18% of revenue CHF 3
Slide 15: Spin-off on track for listing in November 2024
Spin-off on track for listing in November 2024 Sunrise Q3 2024 Results | 30 October 2024 15
Slide 16: Expected Spin-off timetable
Expected Spin-off timetable Listing on SIX Swiss Exchange expected on 15 November 2024 First day of trading of First day of trading of Distribution Record Date Class A shares on SIX Class A ADSs on Nasdaq Swiss Exchange 31 Oct 2024 12 Nov 2024 14 Nov 2024 22 Nov 2024 04 Nov 2024 13 Nov 2024 15 Nov 2
Slide 17: Debt Structure post capital injection
Debt Structure post capital injection Targeted leverage of 4.5x at year end • Gross debt reduction of ~CHF1.2bn (incl. related derivative Leverage post capital injection (in CHFm)1 terminations resulting in reduction of swap liabilities) will be effected as of 31 October 2024, funded by a capital co
Slide 18: Key Takeaways
Key Takeaways 1 STRONG COMMERCIAL MOMENTUM Q3 FINANCIALS ON TRACK AND IN LINE WITH 2 UPDATED FY 2024 GUIDANCE 3 SPIN-OFF ON TRACK FOR LISTING IN NOVEMBER 2024 Sunrise Q3 2024 Results | 30 October 2024 18
Slide 19: Q&A
Q&A Sunrise Q3 2024 Results | 30 October 2024 19
Slide 20: Appendix
Appendix Sunrise Q3 2024 Results | 30 October 2024 20
Slide 21: Q3 Bridge from Liberty Global to Sunrise Non-Financial Disclosure
Q3 Bridge from Liberty Global to Sunrise Non-Financial Disclosure Q3 24 NFI Bridge Liberty Global reporting to Sunrise reporting Q3 24 Liberty Global Reported Bridge to Sunrise Reported Q3 24 Sunrise Reported • Broader inclusion of 2nd Sim Cards counted as RGUs Postpaid, Net Additions in k 43 • Timi
Slide 22: Quarterly P&L and Cash Flow
Quarterly P&L and Cash Flow Financials - P&L 2023RB 2024RB CHF millions 2021RB Q122 Q222 Q322 Q422 2022RB Q123 Q223 Q323 Q423 2023RB Q124 Q224 Q324* (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 1’484.3 749.0 Growth % (0.0%) (1.7%) (1.0
Slide 23: Quarterly segment split
Quarterly segment split Financials - Revenue split 2023RB 2024RB CHF millions 2021A1 2022A1 Q123 Q232 Q323 Q423 2023RB Q124 Q234 Q324 (H1) (H1) Revenue 3’035.7 3’035.2 747.4 733.3 1’480.7 759.1 795.4 3’035.2 746.8 737.5 1’484.3 749.0 Growth % (0.0%) (1.7%) (1.0%) (0.9%) 2.5% (0.2%) (0.1%) 0.6% (1.3%
Slide 24: Quarterly segment split (cont'd)
Quarterly segment split (cont’d) Financials - P&L 2023RB 2024RB CHF millions 2023RB (YTD) 2024RB (YTD)* (Q3) (Q3) Revenue 759.1 749.0 2,239.8 2,233.3 Growth % (1.3%) (0.3%) Residential Customers 564 539 1,668 1,619 Business Customers & Wholesale 194 207 569 609 Infrastructure & Support Functions 2 3
Slide 25: Operational KPIs – Customer relationships
Operational KPIs – Customer relationships Customer Relationships 2021 2022 Q123 Q232 2023H1 Q323 Q423 2023H2 2023 Q124 Q224 2024 H1 Q324 Fixed Customer Relationships represent the number of customers who receive at least one of Sunrise’s broadband internet, TV or fixed-line telephony services, witho
Slide 26: Operational KPIs – Base RGUs
Operational KPIs – Base RGUs Base RGUs1 2021 2022 Q123 Q232 2023H1 Q323 Q423 2023H2 2023 Q124 Q224 2024 H1 Q324 Internet Subscribers are homes, residential multiple dwelling units or commercial units that receive fixed Broadband Internet broadband internet services over Sunrise’s fixed or mobile net
Slide 27: Operational KPIs – ARPU Residential
Operational KPIs – ARPU Residential ARPU (Residential) 2021 2022 Q123 Q232 2023H1 Q323 Q423 2023H2 2023 Q124 Q224 2024 H1 Q324 Subscription Revenue CHFm 1,956 1,934 469 468 937 486 474 959 1,896 460 459 919 457 Fixed CHFm 1,125 1,080 263 260 522 263 258 521 1,043 253 250 502 246 Mobile CHFm 832 855
Slide 28: US GAAP to IFRS Reconciliations
US GAAP to IFRS Reconciliations Three months ended September 30, 2024 Nine months ended September 30, 2024 Three months ended September 30, 2023 Nine months ended September 30, 2023 Revenue Revenue Revenue Revenue Asset Asset Asset Asset Cloud Sports Rights Cloud Sports Rights Cloud Sports Rights Cl
Slide 29: Rebase Information (1)
Rebase Information (1) 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-related, transaction-related,
Slide 30: Rebase Information (2)
Rebase Information (2) 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-related, transaction-related,
Slide 31: Rebase Information (3)
Rebase Information (3) 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-related, transaction-related,
Slide 32: Non-IFRS Reconciliations
Non-IFRS Reconciliations Nine months ended Three months ended Three months ended Three months ended September 30, Year ended December 31, March 31, September March 31, September December 31, March 31, September December 31, 2024 2023 2023 2022 2021 June 30, 2024 June 30, 2023 June 30, 2022 2024 30,
Slide 33: Contact Information
Contact Information Sunrise Investor Relations Thurgauerstrasse 101B investor.relations@sunrise.net 8152 Glattpark (Opfikon) +41 58 777 61 00 Switzerland
Sunrise Communications A — Q3 2024 Earnings Presentation on 6ix