Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — FY2013 Earnings Presentation

23 slides from Sunrise Communications Ag Class A's earnings presentation, Mar 19, 2014

  1. Slide 1: Financial results January-December 2013

    Sunrise Communications Holdings S.A. Financial results January-December 2013 © Sunrise 19.03.2014 1

  2. Slide 2: Agenda

    Agenda 1. Sunrise Strategic Update 2. Financial Results FY’13 and Q4’13 3. Updates on Operations and Marketing 4. Q&A © Sunrise 20.03.2014 2

  3. Slide 3: Sunrise Strategic Update

    1 Sunrise Strategic Update

  4. Slide 4: Preparing Sunrise for the next phase of growth

    Preparing Sunrise for the next phase of growth  Significant step up in management capabilities and depth  Considerable investments in next generation telecommunications networks  Strengthening relationship with our network partner Huawei  Tangible improvements to data capacity, speed and quality

  5. Slide 5: Visible network and customer care improvements

    Visible network and customer care improvements Network Net Promoter Score (NPS) Customer Care Connect Test 2013 Flagship Stores Rapid Improvements #2 with strongest improvements Improvements Jun-Dec Improvements Jun-Dec (in points) (in percentage points) (in percentage) +28 Sunrise (+49) +25 +16 +14

  6. Slide 6: Product innovations: Transparency, fairness and customer orientation

    Product innovations Transparency, fairness and customer orientation Quad-Play - The best convergent experience • Sunrise TV with 7 day come back TV and recommendation engine • New MTV Mobile and MTV Home offers • Continued roll-out of LTE and fibre connections to end customers • Sunrise indoor box –

  7. Slide 7: Full Year and Q4 2013 Financial Results

    2 Full Year and Q4 2013 Financial Results © Sunrise 19.03.2014 7

  8. Slide 8: Financial key messages

    Financial key messages ● FY’13 revenues of CHF 2’021 million, a decrease of CHF 45 million on FY’12 (-2.2%) ● Organic revenues decreased by CHF 71 million (-3.5%) due to postpaid migration effects ● Positive FY’13 postpaid net adds +76.9k, including +25.1k in Q4’13 ● Majority of customers (>80%) alr

  9. Slide 9: Top line pressure compensated by cost measures

    Top line pressure compensated by cost measures Delta versus same period of previous year CHF million Q1’13 Q2’13 Q3’13 Q4’13 • Effect of price migrations flattening out with more Gross profit than 80% of customers already on new rate plans (13.3) (15.5) (15.8) (13.7) pressure • Positive Q4 trading t

  10. Slide 10: Mobile subscribers and ARPU development

    Mobile subscribers and ARPU development Mobile subscribers (‘000) Blended ARPU (CHF) 2,494 2,491 43.3 4.3 2,142 2,138 2,142 36.8 3.8 1,233 1,258 1,181 1,197 1,217 39.0 33.0 1,261 1,233 960 941 925 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q4’12 Q4’13 Postpaid Prepaid Termination Origination +76.9k postpaid subs

  11. Slide 11: Pro-forma mobile prepaid subscriber statistics 12 month activity rule

    Pro-forma mobile prepaid subscriber statistics 12 month activity rule • For transparency reasons, pro-forma mobile prepaid subscribers based on a 12 month activity rule instead of Sunrise’s 3 month activity rule are provided • Sunrise still believes, that the 3 month activity rule is a fairer repres

  12. Slide 12: Landline internet subscribers and ARPU development

    Landline internet subscribers and ARPU development Subscribers (‘000) Internet and Sunrise TV ARPUs (CHF) 367 363 358 352 346 +12% +6% 43.9 42.4 41.1 39.3 38.5 37.4 37.9 36.2 36.3 329 313 300 287 272 66 74 50 58 38 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Internet Sunrise TV Inter

  13. Slide 13: Overview of results

    Overview of results Financial Results FY 2013 FY 20121) Q4'2013 Q4'20121) CHF Million Mobile 1'266 1'309 323 333 Landline Services 558 575 143 146 of which hubbing 149 129 39 32 Landline Internet 198 183 51 48 Total revenues 2'021 2'066 517 526 % yoy growth (2.2%) (1.8%) % yoy organic growth (excl.

  14. Slide 14: Capital expenditure breakdown

    Capital expenditure breakdown CHF million 281 +25.1% 225 187 64 27 3 2012 2013 Mobile network Landline network IT investments Other investments investments * Includes customer premises equipment for Sunrise TV • Mobile network investments (+29% y-o-y) were primarily driven by the ongoing network inv

  15. Slide 15: Net debt and leverage ratio

    Net debt and leverage ratio Net Debt Dec 31, 2013 Dec 31, 2012 CHF million Senior Secured Notes 755 749 Senior Secured Notes issued July 2012 523 521 Floating Rate Notes issued July 2012 205 377 Senior Unsecured Notes 689 680 Utilized RCF 95 0 Total cash-pay borrowings 1) 2'267 2'327 Fair value of c

  16. Slide 16: Updates on Operations and Marketing

    3 Updates on Operations and Marketing © Sunrise 19.03.2014 16

  17. Slide 17: Updates on network

    Updates on network 1 Mobile network • Focus on best blend of technologies and spectrum to offer enhanced mobile voice and data user experience • Utilizing UMTS and LTE in the low frequency bands (800/900MHz) • Enhancing deep indoor coverage • Enabling nationwide coverage, including rural areas – UMT

  18. Slide 18: Updates on operations: Mobilizing and driving change through NPS

    Updates on operations Mobilizing and driving change through NPS 1 Methodology • Sunrise has introduced closed loop feedback systems, especially focusing on interaction channels, using the Net Promoter ® metric • Sunrise has reached 85% mobilization of employees in consumer segments and is finalizing

  19. Slide 19: Being transparent about our Customer Service performance

    Updates on operations Being transparent about our Customer Service performance KPIs important for our customers are: • Accessibility – already available on web site (www.sunrise.ch) • Solving rate – available in Q2’14 • Promise kept – available in Q2/Q3’14 Sunrise will continue to invest into custom

  20. Slide 20: Innovative product developments

    Innovative product developments MTV Mobile / MTV Home MTV Mobile For all under the age of 30 – fair and MTV tariffs for mobile, internet and TV – Home Offer already launched Sunrise Flat rate for calling foreign travel pack Relaxed destinations and attractive offers abroad for data roaming – already

  21. Slide 21: Q&A

    4 Q&A © Sunrise 19.03.2014 21

  22. Slide 22: Thank you

    Thank you © Sunrise 19.03.2014 22

  23. Slide 23: Disclaimer

    Disclaimer This presentation and any materials distributed in connection herewith (together, the “Presentation”) do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe for any securities, and nei

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