Swisscom Ag · SIX:SCMN
Swisscom — FY2021 Earnings Presentation
90 slides from Swisscom's earnings presentation, Feb 3, 2022
Slide 1: Swisscom FY 2021 results
Swisscom FY 2021 results Analyst and investor presentation February 3rd, 2022
Slide 2: Welcome and agenda
Welcome and agenda Achievements 2021 Urs Schaeppi, CEO Swisscom Swisscom 2025 Urs Schaeppi, CEO Swisscom #1 in Switzerland Urs Schaeppi, CEO Swisscom Leading challenger in Italy Alberto Calcagno, CEO Fastweb Rock-solid financials Eugen Stermetz, CFO Swisscom Wrap-up Urs Schaeppi, CEO Swisscom Q&A Al
Slide 3: Achievements 2021
Achievements 2021 Urs Schaeppi, CEO Swisscom 3
Slide 4: 2021 in a nutshell
2021 in a nutshell Strong operational performance and financial results Highest Outstanding NPS ICT position. and Leading in Cloud and best converged Several test wins Managed Security confirming Swisscom's network undisputed leadership in in Switzerland best customer experience Climate neutral Soun
Slide 5: Market performance in Switzerland and Italy
Market performance in Switzerland and Italy Overall solid operational results with a strong focus on value customers Swisscom Switzerland 1 Fastweb Reported net adds in k RGUs in k Market share 2 2'750 2'037 -6 +3 +7 50% 16% +3 Broadband +18 -1 +9 -15 Q1 Q2 Q3 Q4 FY 20 -6 Broadband -18 +4 1'592 +1 +
Slide 6: Financial results 2021
Financial results 2021 Underlying EBITDA increased thanks to strong operational results and lower indirect costs in CHF mn Underlying EBITDA growing in 2021 in CHF mn Net EBITDA Net revenue income Reported +96 (+2.2%) 11'183 4'478 1'833 Underlying +95 (+2.2%) (+83, +0.7% YOY) (+96, +2.2% YOY) (+305,
Slide 7: Swisscom 2025
Swisscom 2025 Urs Schaeppi, CEO Swisscom 7
Slide 8: Swisscom uniquely positioned …
Swisscom uniquely positioned … Steady investments reflected in best customer experience and strong shareholder return Attractive Leading service Strong #1 NPS UBB footprint revenue shares TSR track record >100 Mbps coverage 1 NPS comparison 2 Mobile market share 3 Total Shareholder Return 4 in % of
Slide 9: … in an environment with continuous challenges
… in an environment with continuous challenges Swisscom's business and ecosystem impacted on several dimensions Market Customers Stakeholders • Ongoing service revenue pressure • Price sensitivity up • ESG relevance increasing in Switzerland • Requirements changing • Higher number of cyber attacks •
Slide 10: Swisscom with solid strategy and ambitious goals 2025 …
Swisscom with solid strategy and ambitious goals 2025 … … to empower the digital future #1 in Leading Rock-solid Committed to Outstanding in Switzerland challenger in financials corporate innovation & Italy responsibility reliability • Market leader in Telco • Largest converged • Sound profitability
Slide 11: Focus 2022
Focus 2022 Push digital momentum (digital shift, digital first proposition) and further 2 3 Consequent execution on efficiency measures. Continuous focus on costs develop Fastweb into an 'infrastructured OTT' 1 Defend market shares 4 Find solutions supported by in Switzerland through differentiation
Slide 12: #1 in Switzerland
#1 in Switzerland Urs Schaeppi, CEO Swisscom 12
Slide 13: Swisscom Switzerland with outstanding results
Achievements 2021 Swisscom Switzerland with outstanding results - commercially and operationally B2C B2B Infra Several test wins Strong NPS Win of all w- tests connect shop, connect app, PC Tipp development in Switzerland hotline Several partner awards Completion of NPS leadership increased affirmin
Slide 14: Financials 2021
Financials 2021 Net revenue flat. Reported EBITDA impacted by provisions and FCF additionally by higher CAPEX Net revenue EBITDA OpFCF proxy in CHF mn (YOY) in CHF mn (YOY) in CHF mn 8'233 Net revenue YOY -0.2% Q4 2021 Others1 658 (-3) Wholesale EBITDAaL4 719 -11 776 (+17) Hardware 3'453 EBITDA 2 -0
Slide 15: Corporate responsibility: new CO2 ambitions 2025
Corporate responsibility: new CO2 ambitions 2025 Swisscom since 2020 fully climate-neutral and continues to be an industry front-runner Own direct CO2 emissions (scope 1-2) Own indirect emissions (scope 3) From fuel, thermal energy consumption and purchased electricity From supply chains, transport,
Slide 16: Corporate responsibility: results 2021
Corporate responsibility: results 2021 Swisscom continues to assume responsibility Ready for people Status 2021 • 71'806 schoolchildren, teachers, parents and senior citizens were 1 trained in the use of digital media 1'640k • Youth media protection with inclusion (+ 14% YOY) of all user groups and
Slide 17: Strategy
Strategy Proven settings for Swisscom Switzerland Best New Operational customer growth excellence experience #1 in NPS Cost savings Revenue growth Best products Digital leader Maximise core Best services Lean IT and networks Grow in Solutions Focused growth Best infrastructure Smart investments in a
Slide 18: Empowering the digital future in B2C
Empowering the digital future in B2C Maximise customer Inspire with exciting value entertainment with attractive inOne by leveraging blue and and convergent offerings launching blue 2 Increase share of Attract new subs wallet with wingo through best digital and smart promotional experience with VAS
Slide 19: Maximise customer value in saturated markets
Maximise customer value in saturated markets Convince with quality and network differentiation to upgrade customers Status inOne RGUs increase Ongoing growth with inOne and giga-tariffs InOn in k • More4More strategy with giga-tariffs e 5'092 5'300 e.g. +25% BB L tariffs with 10Gbps offerings in 202
Slide 20: Lead in FMC+ experience to protect the core
Lead in FMC+ experience to protect the core Defend ARPU and keep churn low Status FM converged FM converged postpaid value subs1 broadband subs1 FROM TO as per 31.12.2021 as per 31.12.2021 BEST ACCESS BEST DIGITAL EXPERIENCE 41% 46% stable YOY stable YOY inOne home Entertainment Smart Life FY ARPUs
Slide 21: Outstanding entertainment is key to keep and attract customers
Outstanding entertainment is key to keep and attract customers Strong attachment rate and NPS Status 1 Aggregator role to strengthen competitiveness 2 Scaling & monetising TV High attachment rate TV to broadband Smart partnership - all from 1 single source blue TV as OTT offerings • LGs , Apple TV •
Slide 22: Best digital experience driving growth in Smart Life and VAS
Best digital experience driving growth in Smart Life and VAS … … and protecting core business Status SL & VAS Security & Services revenues [indexed] Core VAS 1 Smart Life 189 196 172 Entertainment 142 2021 future 2 + 100 Core 2017 2018 2019 2020 2021 1 Up- and cross-selling 2 New growth areas Smart
Slide 23: Attack from all sides with multi-brand strategy
Attack from all sides with multi-brand strategy Record year for wingo and 3rd brands ready to attack Status Premium 2nd/3rd brands postpaid value subs POSITIONING MULTI-BRAND Price 23% CB share (+4 YOY) Budget 2nd/3rd brands Budget Value Positioning Premium broadband subs • 2nd brand with record gro
Slide 24: Smart promotional behaviour key to successfully address market dynamics
Smart promotional behaviour key to successfully address market dynamics Swisscom: focus on convergence and value. wingo: defend market share Own brand: focus on convergence and value, not on growth at any price Focus on convergence – promotions mainly as a cross-selling tool to boost convergence, ra
Slide 25: Digital push with best omni-channel experience
Digital push with best omni-channel experience Consistent shift to online while keeping best experience across all channels Status 1 Sales and care with successful shift to online … Channel share eSales Channel share eSales wireless wireline • W- eSales close to 10%, broadband growing towards 20% •
Slide 26: Empowering the digital future in B2B
Empowering the digital future in B2B Push value Foster new business differentiation opportunities through attractive thanks to 5G in modular Telco offerings combination with IoT, cloud and analytics Extend ICT leadership Lever strong market in corporate segment position in SME with organic growth, w
Slide 27: Service revenue impacted by continuous price pressure
Service revenue impacted by continuous price pressure Hold leading position in a challenging market with strong value proposition Service revenue trend unchanged in CHF mn Hold leading position with strong value differentiation 1’721 -4.9% 1'637 • Covid-19 tailwind led to • Attractive modular offeri
Slide 28: New business potential through 5G and IoT in wireless
New business potential through 5G and IoT in wireless Proven ability to combine IoT, 5G, cloud and analytics' capabilities Growth potential with selected 5G use cases Microsoft global IoT award for successful customer project Prioritised voice, data and push-to-talk • Successful combination of state
Slide 29: Extending ICT portfolio in corporate segment
Extending ICT portfolio in corporate segment Organic and inorganic initiatives combined with strong partnerships cementing Swisscom leading position Corporate Solutions Initiatives supporting ongoing IT solution growth Vertical IT Solutions Business Acquisition of JLS to strengthen digital communica
Slide 30: Lever Swisscom's strong market position in SME
Lever Swisscom's strong market position in SME Acquisition of MTF to enhance capabilities and penetrate SME-market with ICT solutions SME Solutions Initiatives for profitable growth in SME segment Internet, landline, TV Strengthen capabilities to address market needs • Support Digitalization journey
Slide 31: Cementing #1 NPS market position with best-in-class omnichannel experience
Cementing #1 NPS market position with best-in-class omnichannel experience Digital transformation as basis for high and increasing customer satisfaction Key results 2021 Outlook 2022+ • Launch of MySwisscom business portal and • One B2B portal: start migration of SME customers and migration of corpo
Slide 32: Empowering the digital future in infrastructure
Empowering the digital future in infrastructure Best mobile net in Continuous fibre-optic Switzerland investments proven by numerous key to make Switzerland test wins for many years gigabit ready and future- proof Reduce IT & network Reliable and secure complexity networks to improve efficiency, key
Slide 33: Ambitious targets to transform our IT & network infrastructure
Ambitious targets to transform our IT & network infrastructure Swisscom heavily invests in networks and technology stack simplification and modernisation 2021 2025 ambition Wireless LTE 1 99% - Swisscom enables the best customer 5G 1 99% - experiences through constant investments in new technologies
Slide 34: Winner of all Swiss mobile tests in 2021 including 5G
Winner of all Swiss mobile tests in 2021 including 5G Undisputed mobile leadership and #ready for tomorrow with the best 5G network Undisputed #1 in mobile Swisscom's factors of permanent success 1 1 1 1 1 1 1 1 1 1 1 1 • Continuous investments (steady annual CAPEX envelope of CHF ~0.3bn) • Best fre
Slide 35: Making Switzerland Gigabit-ready
Making Switzerland Gigabit-ready Swisscom targets a fibre-optic HH coverage of ~60% by 2025 – enabled by efficient P2MP approach Swisscom's fibre strategy and roadmap Swisscom's FTTH-rollout approach • FTTH rollout 2009-2015 (together with utilities): • P2MP stands for the most efficient and common
Slide 36: COMCO investigating Swisscom's P2MP fibre-optic rollout
COMCO investigating Swisscom's P2MP fibre-optic rollout Swisscom in discussions with COMCO to find an agreement on P2MP 12/ 20 01/21 10/21 11/21 02/22 Q2/22 or later FTTH Appeal FAC Appeal to FTTH Decision investigation to FAC decision Federal Court investigation to be expected into P2PM on precauti
Slide 37: Way forward to accomplish the FTTH rollout
Way forward to accomplish the FTTH rollout Dividend policy unaffected by outcome of fibre discussions Swisscom in discussions with COMCO • Aim to find an agreement on a L1 offering (based on FANS technology) - discussions ongoing • A decision expected over the next months (probably in Q2 or later) P
Slide 38: Reduce IT and network complexity for operational excellence
Reduce IT and network complexity for operational excellence We simplify - consistently and everywhere Phase-out legacy technology Consolidate / simplify networks Phase-out / cloudify applications • Prepare 3G phase out by 2025 • Radical consolidation and • Phase out 25% of applications • Accelerated
Slide 39: Reliable and secure networks key to cement outstanding trustworthiness
Reliable and secure networks key to cement outstanding trustworthiness Reliability and security are the basis of our value creation and first priority Strategic initiatives for best operations … … and strong improvements • Separate task force mandated to prevent People & Escalated major -62% major d
Slide 40: Secure wholesale value contribution
Secure wholesale value contribution Focus on core business with new access products and new access agreements Access products Access agreements • Broadband connectivity services (BBCS) on all copper & fibre technologies NEW • Fibre partnership with Salt • Access line optical (ALO) on P2P FTTH • Acce
Slide 41: Empowering the digital future in operational excellence
Empowering the digital future in operational excellence Strong execution on Simplification key cost saving ambitions to increase operational Cumulative savings of efficiency and optimise ˃ CHF 600mn since 2016 networks and IT platforms Drive digitalisation Cost control through pushing online as top
Slide 42: Strong execution on cost saving targets for many years
Strong execution on cost saving targets for many years Cost control remains essential 2016 2017 • Strong track record CHF 50mn CHF 62mn • Cumulative net savings of CHF 608mn over 6 years • Indirect cost base down by 2018 2019 CHF ~100mn p.a. on average CHF 121mn CHF 127mn • In this context the FTE n
Slide 43: Simplicity is core to increase efficiency throughout the whole organisation
Simplicity is core to increase efficiency throughout the whole organisation Push operational efficiency to the next level and optimise networks and IT platforms Operational efficiency Network / IT optimisations Data and analytics Lean / agile organisation • Streamline product portfolios • Network ph
Slide 44: Operational excellence
Operational excellence Swisscom targets to lower indirect Telco-related costs by CHF -100mn in 2022 Ahead of plan thanks to overachievements 2020-2021 in CHF mn • >80% of total 20-22 ambition ambitions 20-22 achievements of lowering indirect cost base by CHF -300mn already realised 2020 ~100 -129 •
Slide 45: Leading challenger in Italy
Leading challenger in Italy Alberto Calcagno, CEO Fastweb 45
Slide 46: Successful execution of 'infrastructure-OTT' strategy in 2021
Successful execution of 'infrastructure-OTT' strategy in 2021 Coupling superior infrastructure with flexible platforms Solid operational momentum • Increase in wireline RGUs − Preserving margins in retail − Boosting UBB lines in wholesale • Strong growth in mobile: 2nd best market performer • Streng
Slide 47: Leading to another golden year
Leading to another golden year Strong performance - operationally, commercially and financially Strong market performance • Total Net RGUs +692k (+14% YOY) • Wireline: +181k (+6% YOY) • Retail +3k (+0% YOY) • Wholesale UBB lines +178k (+113% YOY) • Mobile +511k (+26% YOY) • Enterprise Market share c
Slide 48: Financial results 2021
Financial results 2021 Continuous improvement of free cash flow contribution Net revenue EBITDA OpFCF proxy in EUR mn (YOY) in EUR mn (YOY) in EUR mn 4Q 2021 YOY 2’392 Net revenue 826 EBITDA2 (+5%) (+4%) +7 Lease EBITDAaL4 210 54 (+2) 271 (+7) Wholesale1 224 expense3 +15 (+4%) CAPEX -162 14 (+1) (+4
Slide 49: Fastweb recipe for continuous growth delivery
Fastweb recipe for continuous growth delivery Accelerate transition to a platform-based company differentiating by trust and inclusion Exploit growth areas Deliver consistent growth over time in all business segments: • Consumer Wireline • Mobile • Enterprise Expand own • Wholesale infrastructure an
Slide 50: Consumer - wireline
Consumer - wireline UBB growth thanks to OTT capabilities, infrastructure differentiation and compelling FMC offerings Highlights 2021+ Consumer operational KPIs Broadband subs in k (YOY) • Unique “Nexxt” Internet Box +0.1% • Best UBB performance everywhere through FWA 2’750 2’747 • NPS leadership i
Slide 51: Mobile - B2C and B2B
Mobile - B2C and B2B Deliver constant growth of mobile subs in B2C and enter B2B market Highlights 2021+ B2C operational KPIs • 2nd best performer in the market by numerous subs Mobile subs acquired from other operators (mobile number +26% portability) 2’472 • Extended real coverage on own 5G networ
Slide 52: Enterprise
Enterprise Continuous expansion in Cloud & Security field to stimulate further growth Highlights 2021+ B2B operational KPIs Revenues in EUR mn (YOY) Telco +8% 979 • OTT-like process digitalisation from presale to delivery • Revenues +8% 907 YOY primarily • Fully customer-tailored infrastructure solu
Slide 53: Wholesale
Wholesale Boost of UBB lines growth thanks to infrastructure light retail competitors Highlights 2021+ Operational KPIs • UBB lines growth driven by agreements and Revenues in EUR mn 1 (YOY) successful implementation with WindTre and Sky • Core up (EUR +27mn +3% YOY): growth of • Future focus wholes
Slide 54: Own infrastructure evolution
Own infrastructure evolution Pursue UBB leadership through FTTH, 5G FWA and 5G Mobile Own network coverage Network evolution with stable CAPEX envelope of EUR ~0.6bn 5G 5G FTTx FTTx Up to 2.5 Gbps FWA Mobile mn HHs & companies % outdoor cov. 5G FWA 2021 7.5 1.5 50% Up to 1 Gbps 2025 14.5 12 90% Mobi
Slide 55: Empowering the digital future
Empowering the digital future New Fastweb Purpose: help everybody to build their future with trust TU SEI FUTURO CORE FDA STEP FUTURE WEEK Core Business Operations Fastweb Digital Academy Fastweb Purpose Experience • Provide tools and • Fastweb's digital • Unique exhibition • Fastweb workforce infra
Slide 56: Wrap-up and guidance
Wrap-up and guidance Accelerate positive momentum and grow likewise in 2022 Deliver top-line growth over time • Continue sustained RGU growth • Value-based approach in Consumer wireline with innovative products and services with superior quality • Grow on mobile B2C and B2B market exploiting 5G • Sc
Slide 57: Rock-solid financials
Rock-solid financials Eugen Stermetz, CFO Swisscom 57
Slide 58: Group revenue
Group revenue Delivered. Swisscom's top line spot-on guidance of CHF 11.2bn Q1 Q2 Q3 Q4 +25 +9 +1 +1 +4 +41 +40 +10 +13 +20 +66 +74 +10 +11 +6 +7 +2 -1 -19 -9 -15 -2 -11 -3 -3 -3 -7 -13 -16 +2 -15 in CHF mn -59 Underlying +64 (+0.6%) +94 Swisscom Switzerland -17 (-0.2%) (+3.8%) +19 +83 +31 Q1: +15,
Slide 59: Swisscom Switzerland revenue
Swisscom Switzerland revenue Service revenue decline of CHF -189mn: lower than expected, also thanks to Covid-19 tailwind FY 21 revenue changes by business drivers Service revenue evolution and Q4 21 changes in CHF mn in CHF mn 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Swisscom Switzerland -17 (-0.2%) B2C -
Slide 60: Group EBITDA
Group EBITDA EBITDA up thanks to strong underlying results of Swisscom Switzerland (+1.4%) and Italy (+5.4%) Q1 Q2 Q3 Q4 +21 +45 +96 +1 +6 +2 +16 +4 +23 +20+34 +4 +6 +4 +10 +10 +9 +10 +2 +13 +0 -12 -17 -1 -6 -8 -2 -4 -33 -29 -19 -13 in CHF mn Underlying +95 (+2.2%) Q1: +9, Q2: +51; Q3: +29, Q4: -15
Slide 61: Swisscom Switzerland EBITDA
Swisscom Switzerland EBITDA Indirect cost savings on a recurring base of CHF 119mn Q1 Q2 Q3 Q4 +13 +8 +25 +25+28 +7 +9 +15 +4 +1 +10 +8 +15 +22 +1 +2 +4 -9 -8 -7 -2 -0 -9 -14 -18 -2 -22 -30 -19 -10 -36 in CHF mn -37 Underlying +48 (+1.4%) Direct cost -54 (+3.0%) Indirect cost +119 (-4.0%) +76 +6 +43
Slide 62: Capital expenditures
Capital expenditures Continuous investments in critical infrastructure of the future Swisscom Switzerland FY 2021 in CHF mn, % YOY Q4 21 FY 21 Copper access, back- Fibre Group 681 2'286 bone and transport infrastructure CAPEX (+84, +14.1%) (+57, +2.6%) 26% (-1pp YOY) 34% (+2pp YOY) Swisscom 517 1'64
Slide 63: Free cash flow
Free cash flow Lower YOY primarily due to different evolution of net working capital in CHF mn 4’478 -301 4'177 -2'286 2 1 1'513 1'891 -19 FY 21 -9 -67 -279 -4 +96 -1 +95 -57 +38 -159 -74 +2 +30 -30 -193 Δ 4’382 -300 4'082 -2'229 +140 +65 +26 1'706 1'853 -69 FY 20 -309 Lease OpFCF Change in Pension
Slide 64: Net income
Net income EPS increased by +19.7% thanks to stronger EBIT (+6.1%) and positive one-off effects in CHF mn 1 2 tax rate 1 EPS 14.8% 35.37 FY 21 4’478 -2'131 -281 2'066 -60 -44 +200 -10 -319 1'833 -1 1'832 Δ +96 +18 +5 +119 +9 +1 +238 -14 -48 +305 -3 +302 tax rate 1 EPS 15.1% 29.54 FY 20 4’382 -2'149
Slide 65: Swisscom committed to sound financial profile
Swisscom committed to sound financial profile Well balanced and diversified maturity profile Net debt development (in CHF mn) Leverage 1.7x (-0.2x YOY) 2 1.4x IFRS16 adjusted Ratings S&P: A stable Moody's: A2 stable Net debt FCF Dividends M&A Other Net debt incl. lease effects incl. lease liabilitie
Slide 66: Guidance FY 2022
Guidance FY 2022 Net revenue of CHF 11.1-11.2bn, EBITDA of CHF ~4.4bn and CAPEX of CHF ~2.3bn 2021 2022 in CHF bn reported Splits into: outlook 3 Splits into: CHF 8.6bn for Switzerland 2 CHF 8.5-8.6bn for Switzerland Revenue 11.183 EUR 2.4bn for Fastweb 11.1-11.2 EUR ~2.5bn for Fastweb 4 CHF 3.6bn f
Slide 67: Wrap-up
Wrap-up Urs Schaeppi, CEO Swisscom 67
Slide 68: Final remarks
Final remarks Well positioned Solid strategy and ambitious goals 2025 to empower the Clear digital future priorities 2022 to deliver operationally and financially Strong dividend commitment to enable a predictable shareholder remuneration 68
Slide 69: Q&A
Q&A 69
Slide 70: Appendix
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Slide 71: Ambitions 2025 - Swisscom Switzerland
Ambitions 2025 - Swisscom Switzerland Switzerland's digital backbone • Best converged network Clear market leader • Strong net reliability in Telco revenues • Net and IT consolidation • Digital 1st propositions • 5G and hybrid ICT services • New growth in adjacent businesses #1 in Switzerland Leadin
Slide 72: Ambitions 2025 - Fastweb
Ambitions 2025 - Fastweb Consistent growth with market share gains • Digital operations with OTT-like capabilities Leading • Innovative B2C product portfolio on NeXXt digital platform challenger • Push on Cloud and Security platforms Largest UBB in Italy convergent network • Exploit NGN footprint •
Slide 73: Ambitions 2025 - financials
Ambitions 2025 - financials Reliable cashflows Sound profitability • Maximise cashflows in Switzerland • Defend market shares while and grow cashflows in Italy keeping pricing discipline high • Work further on CAPEX efficiency • Consequent work on • Reasonable CAPEX/sales ratio operational excellenc
Slide 74: Ambitions 2025 - corporate responsibility
Ambitions 2025 - corporate responsibility Trusted Net-zero emissions and corporate citizen positive CO2 contributions • Improved working conditions in the supply chain Committed • Reduction of own CO2 emissions • Reduction of data breaches to corporate to net zero (scope 1-3) • Positive CO2 contribu
Slide 75: Ambitions 2025 - innovation and reliability
Ambitions 2025 - innovation and reliability Digital leader • E-sales and e-care with Highly innovative 360° interaction and products and services top digital experience • blue entertainment • One online portal • Smart life propositions in B2B • 5G mobile private network • Hybrid ICT services Outstan
Slide 76: Key financials
Key financials Reported and underlying revenue and EBITDA in CHF mn 2020 2021 Change Q/Q Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Revenue, reported 2'737 2'706 2'758 2'899 11'100 2'803 2'780 2'760 2'840 11'183 +66 +74 +2 -59 +83 Currency effect -13 -20 -2 16 -19 -13 -20 -2 +16 -19 Underlying cha
Slide 77: Swisscom Switzerland wireless ARPU and IFRS15 adjustments
Swisscom Switzerland Wireless ARPU and IFRS15 adjustments Swisscom Switzerland Swisscom Switzerland 47 44 45 43 45 43 44 43 43 42 43 42 42 42 41 40 36 35 35 34 36 35 35 34 35 34 34 34 34 34 34 33 in CHF in CHF Q1 20 Q2 Q3 Q4 Q1 21 Q2 Q3 Q4 Q1 20 Q2 Q3 Q4 Q1 21 Q2 Q3 Q4 Blended (reported) Blended (IF
Slide 78: Swisscom Switzerland: service revenue dynamics in Q4 and FY 2021
Swisscom Switzerland: service revenue dynamics in Q4 and FY 2021 Reporting framework for service revenue dynamics from Q1 2022 onwards B2C -27 (-2.8%) B2B -23 (-5.4%) in CHF mn RGU ARPU RGU ARPU RGU ARPU RGU ARPU +6 -3 -1 -2 Q4 changes 2021 -8 -9 -11 t/o -6 voice line -22 cancellations t/o -3 FMC Wi
Slide 79: Residential Customers (B2C)
Residential Customers (B2C) Segment reporting as per 31.12.2021 Q4 2021 Q4/Q4 31.12.2021 YoY Net revenue in MCHF 1) 1'169 -1.3% 4'592 0.7% Net revenue increased primarily Direct costs in MCHF -314 -7.1% -1'135 4.3% thanks to IFRS15 revenue Indirect costs in MCHF 2) -192 -11.5% -686 -11.4% reconcilia
Slide 80: Business Customers (B2B)
Business Customers (B2B) Segment reporting as per 31.12.2021 Q4 2021 Q4/Q4 31.12.2021 YoY Net revenue in MCHF 1) 773 -1.5% 3'058 -1.4% Direct costs in MCHF -222 2.8% -821 1.4% Net revenue decreased YOY by -1.4% primarily driven by Indirect costs in MCHF 2) -252 6.3% -950 0.8% lower service revenue o
Slide 81: Wholesale
Wholesale Segment reporting as per 31.12.2021 Q4 2021 Q4/Q4 31.12.2021 YoY External revenue in MCHF 160 -6.4% 658 -0.5% Intersegment revenue in MCHF 72 -7.7% 313 -0.6% Net revenue in MCHF 232 -6.8% 971 -0.5% Direct costs in MCHF -100 -8.3% -426 -1.6% Revenue from external Indirect costs in MCHF 1) -
Slide 82: Wholesale portfolio
Wholesale portfolio Access offerings Carrier Line Service Basic und Premium Solution Business ▪ Dedicated high-quality Point-to-Point Data Transmission, CLS 2Mbps to 100Ggbs symmetric Monthly mass market prices Carrier Ethernet Service Basic und Premium ▪ Layer-2 service for low-cost and flexible et
Slide 83: Infrastructure & Support Functions
Infrastructure & Support Functions Segment reporting as per 31.12.2021 Q4 2021 Q4/Q4 31.12.2021 YoY Net revenue in MCHF 19 -5.0% 76 -8.4% Contribution margin 2 Direct costs in MCHF -2 100.0% -7 -12.5% deteriorated by 2.4% as it Workforce expenses in MCHF -243 3.4% -878 1.4% was affected by Maintenan
Slide 84: Spectrum situation in Switzerland
W- spectrum situation in Switzerland Spectrum overview Frequencies use Swisscom Salt Sunrise upc • 3.5 GHz: use for 5G TDD high-capacity deployment 3500 120 80 100 (also named 5G+ by Swisscom) • 2,6 GHz: in more densely populated areas, Swisscom 2600 85 40 50 uses the 2.6 GHz band for LTE 2100 60 40
Slide 85: Fastweb
Fastweb Segment reporting as per 31.12.2021 Q4 2021 Q4/Q4 31.12.2021 YoY Consumer revenue in MEUR 286 -1.0% 1'142 0.8% Enterprise revenue in MEUR 267 8.5% 979 7.9% All customer segments Wholesale revenue in MEUR 1) 84 -11.6% 271 2.7% report year-to-date a Net revenue in MEUR 1) 637 1.1% 2'392 3.8% r
Slide 86: Other
Other Segment reporting as per 31.12.2021 Q4 2021 Q4/Q4 31.12.2021 YoY External revenue in MCHF 105 -9.5% 431 -3.1% Net revenue in MCHF 1) 263 1.5% 1'033 1.9% Net revenue up by +1.9% OPEX in MCHF 2) -233 9.4% -867 4.5% due to higher revenue EBITDA in MCHF 30 -34.8% 166 -9.8% from cablex. EBITDA marg
Slide 87: Pension plan
Pension plan Status as per 31.12.2021 Valuation differences between Swiss pension law and IFRS Evolution IFRS deficit in 2021 Difference of CHF 2.0bn due to different actuarial … Decrease of CHF 782mn (-98%) 120% … assumptions … valuation method in CHF bn 100% Surplus Company Diff. btw. Future Early
Slide 88: Pension plan
Pension plan Reported costs and outlook 2020 2021 Change 2022 in CHF mn reported reported 21/22 estimate Operating pension cost 338 320 15 335 Plan amendments (one-off cost reduction) - -60 60 - Net pension cost (EBITDA) 338 260 75 335 Net interest (financial result) 2 1 - 1 Total pension cost (P&L)
Slide 89: Investor contact
Investor contact Bild Louis Schmid Tamara Hackl Head Investor Relations Investor Relations Manager louis.schmid@swisscom.com tamara.hackl@swisscom.com +41 58 221 62 79 +41 58 221 12 79 89
Slide 90: Cautionary statement
Cautionary statement Regarding forward looking statements • "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