Swisscom AG · SIX:SCMN
Swisscom — UBS Best of Switzerland Conference 2016
22 slides from Swisscom's conference presentation, Sep 15, 2016
Slide 1: Company presentation
Company presentation UBS Best of Switzerland Conference, Wolfsberg Urs Schaeppi, CEO 15 September 2016
Slide 2: Swisscom profile
Swisscom profile The best in the networked world – everywhere and all the time 2 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Best network (UBB and LTE) Leading Strong Switzerland, a synonym of quality, stability and solidity Strong market positions in mobile, fixed- Telco & ICT mac
Slide 3: Leading telco in Switzerland
Leading telco in Switzerland Stable market position over many years in Switzerland 3 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Technology leader Innovation leader Market leader 3.3 mn New remote 2.3 mn +43% with voice 66% 66% recognition 59% 59% o/w 12% wholesale Ultra broadband (>50 M
Slide 4: Leading attacker in Italy through Fastweb
Leading attacker in Italy through Fastweb Outstanding track record in demanding Italian market 4 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook UBB connections by YE 151 Consumer segment by YE 152 Corporate segment by YE 152 12% 6% Others 9% 46% 5% 27% Others 10% 16% 50% 11% 53% 39% 16% > O
Slide 5: Swisscom Switzerland
Swisscom Switzerland The main FCF contributor 5 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Markets Financial results 30.6.2016 Mobile voice and data Fixed voice and broadband ENTPRISE Revenues: CHF 1,308mm ICT CUSTOMERS Contribution Margin: CHF 417mm + Markets Revenues: CHF 679mm
Slide 6: Group financials
Group financials More or less stable since years 6 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook 4'477 4'302 4'413 4'354* ~4’250 11'384 11'434 11'703 11'678 >11’600 Net revenue EBITDA 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E 2’529 2'396 2'436 2'409 1'948 1'977 1'945* ~2’400 1'90
Slide 7: Swisscom strategy
Swisscom strategy We keep our proven strategic direction 7 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook
Slide 8: Best infrastructure
Best infrastructure Building a performant, secure and efficient Swiss infrastructure 8 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Ambition > Expand 4G LTE coverage and Ambition performance > Extend FTTS/H coverage and > Guarantee operational uptake Ultra Infra- stability and security >
Slide 9: Best experiences
Best experiences Delivering superior customer experiences 9 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Ambition Ambition > Extend service leadership > Continue service excellence > Create better experiences > Increase cross channel (e.g. personalised) capabilities & self service > Stren
Slide 10: Best growth opportunities
Best growth opportunities Exploit growth potential in core business, ICT and Fastweb 10 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Ambition Ambition > Master big data capability > Develop infinity, Vivo > Expand core business bundles & TV 2.0 Internet Telco core with digital services >
Slide 11: Continued focus on our five priorities 2016
Continued focus on our five priorities 2016 Execution well on track to deliver on our five priorities 11 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook a b c d e Maximise Operational Develop Growth core business excellence Fastweb focus Transformation > Defend market > Focus on cost, > Prov
Slide 12: Maximise core business
Maximise core business Differentiate through quality in infrastructure, services and products 12 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook > 3.3 mn lines with ultra broadband (>50 Mbps) o/w 70% with newest fibre technologies (FTTH, FTTS or Vectoring) > Goal 2020: 85% homes and business
Slide 13: Operational Excellence
Operational Excellence Cost reduction program on track to achieve CHF 50 mn savings in 2016 13 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Increasing benefits > Efficiency increases FTE Swisscom Switzerland * – Optimisation of sites: reduction Decreasing costs of call centres from 14 to
Slide 14: Develop Fastweb
Develop Fastweb Enhanced FTTH plan secures Fastweb’s competitive UBB advantage 14 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Fastweb strategy further boosted by FTTH deployment Continuous infrastructure development as key competitive advantage FY 2012 - FY 2016 FY 2016 - FY 2020 FY 2016
Slide 15: Growth focus
Growth focus Leverage existing corporate customer base with tailored ICT solutions 15 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook > Significant growth contributor > New cloud architecture: In-house > New deals won (e.g. dorma+kaba development focuses on personalised Group, Sanitas, Valia
Slide 16: Transformation
Transformation H1 2016 with +200k connections migrated to All IP 16 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook All IP product portfolio >60% of transformation completed # connections in mn Residential Customers: Swisscom Line basic and plus, Vivo, Internet SME: Retail * My KMU Office, 1
Slide 17: H1 2016 highlights
H1 2016 highlights Swisscom continues to deliver on its targets 17 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook Sound financial performance: EBITDA up by 4% YOY thanks to exceptional items and cost focus Positive mobile net adds in Q2 (total +8k, postpaid +19k), Natel infinity 2.0 take-up
Slide 18: H1 2016 market performance
H1 2016 market performance Satisfying RGU development in Q2 18 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook in k Q1 net adds Q2 net adds H1 RGUs (YOY in %) Voice lines -47 2'518 -6.6% -64 Switzerland Swisscom Broadband +10 +10 1'978 +2.9% TV +36 +33 1'400 +13.1% Mobile -10 +8 6'623 +0.5%
Slide 19: H1 2016 financials
H1 2016 financials Revenue stable, margin improved despite softer underlying Q2 19 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook in CHF mn Q1 Q2 H1 2015 2,893 + 2,865 = 5,758 Net revenue Underlying Δ -2 +1 -1 Exceptionals* -6 +18 +12 * +0.2% 2016 2,885 + 2,884 = 5,769 2015 1,051 + 1,082 =
Slide 20: Guidance 2016
Guidance 2016 Net revenue CHF >11.6 bn, EBITDA CHF ~4.25 bn, CAPEX CHF ~2.4 bn 20 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook EBITDA upgraded due CAPEX outlook revised to to exceptional income reflect ongoing high level of from litigation UBB investments in (Fastweb) Switzerland +256 ∼ -
Slide 21: Dividend 2016
Dividend 2016 Predictable distribution 21 1 Profile 2 Strategy 3 Priorities 4 H1 Update 5 Outlook in CHF per share Par value reduction Special dividend 2 8 8 8 21 22 22 22 22 22 22 19 20 17 18 15 16 13 14 11 11 11 12 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 22: Cautionary statement
Cautionary statement Regarding forward-looking statements 22 “This communication contains statements that constitute “forward-looking statements”. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations