Swisscom Ag · SIX:SCMN
Swisscom — Swisscom Ag Ittigen R/Shs — Q1 2025 Earnings Presentation
40 slides from Swisscom's earnings presentation, May 8, 2025
Slide 1: Q1 2025 results
Q1 2025 results Investor and analyst presentation 08 May 2025
Slide 2: Agenda
Agenda Introduction Louis Schmid, Head of Investor Relations Swisscom 1. Achievements Christoph Aeschlimann, CEO Swisscom 2. Business update – Switzerland and Italy Christoph Aeschlimann, CEO Swisscom 3. Financial results Eugen Stermetz, CFO Swisscom Questions & answers Appendix 2
Slide 3: Explanatory remarks
Explanatory remarks § Pro forma comparison to facilitate a meaningful like-for-like comparison 2024 2025 Focus of presentation and facts & figures 2024 2024 2025 2025 figures pro forma figures figures guidance Restated and excluding As if Vodafone Italia Group and segment 'Italy' Confirmed, based on
Slide 4: Achievements
1 Achievements Christoph Aeschlimann CEO Swisscom 4
Slide 5: Q1 highlights
Q1 highlights § Successful start into the new Swisscom chapter Q1 results spot on Leading in Switzerland Next convergence level On track to achieve guidance. Strongest Telco brand1. Best W- network. New B2C multi-mobile offering and New Group organisation since 1 April 2025 Unique multi-brand portfo
Slide 6: Q1 operational results
Q1 operational results RGU base broadly stable in Switzerland and Italy RGUs in k Net adds Net adds RGUs in k market share 1 (YOY) in k, YTD in , YTD market share 1 (YOY) 5'511 +51 -1 20'215 52% (-1.6pp) 26% (+0.1pp) Postpaid Mobile 1'953 -14 -67 5’849 Broadband 47% (-1.6pp) 31% (-0.3pp) Broadband 1
Slide 7: Q1 financial results
Q1 financial results On track to achieve guidance 2025 Q1 fully in line Stability Transitional year with FY guidance in Switzerland in Italy Revenue 3'759 1'962 1'818 in CHF mn (YOY in CHF mn, %) (-24, -1.2%) (-8, -0.4%) (-47, -1.2%) EBITDAaL 1'277 865 422 (-21, -2.4%) (-58, -12.1%) (-90, -6.6%) CAP
Slide 8: Business update – Switzerland and Italy
2 Business update – Switzerland and Italy Christoph Aeschlimann CEO Swisscom 8
Slide 9: Strategic priorities 2025
Strategic priorities 2025 Roadmap 2025 to drive long-term value creation Cement Build #1 position #1 customer choice in Switzerland in Italy Manage Integrate Vodafone Italia Telco top line and capture synergy potential Execute Telco cost Stabilise B2C Telco top line and transformation grow beyond co
Slide 10: B2C: stimulate RGU inflow momentum across all brands
Manage Telco top line B2C: stimulate RGU inflow momentum across all brands Telco Drive multi-mobile convergence RGU base in k (YOY) and HH penetration • New multi-mobile convergence offering 2nd/3rd brand 2nd/3rd brand 'We are family' successfully launched 35% (+3pp) 12% (+2pp) • New blue Kids offer
Slide 11: B2C: sustain value of customer base
Manage Telco top line B2C: sustain value of customer base Telco Tap into new value catalysts ARPU in CHF (YOY) • Upsell blue subscriptions to higher value offers in new FTTH-turf with Gigabit speeds • wingo with price increase of CHF +1 on 89 postpaid offers from 1 July 2025 (+1) • Launch of innovat
Slide 12: B2B: innovate market with NextGen Telco portfolio and new IT services
Manage Telco top line & achieve profitable IT growth B2B: innovate market with NextGen Telco portfolio and new IT services Telco IT ARPU IT service revenue2 Manage Telco top line in CHF (YOY) Establish 'Specialized in CHF mn 46 Solutions Customers' unit • Use attractive offerings in +2.4% conjunctio
Slide 13: Network and Wholesale: monetise investments in future-proof networks
Manage Telco top line Network and Wholesale: monetise investments in future-proof networks Network Wholesale Telco Pop coverage Strengthen #1 position in Market share access ports4 Expand best mobile network (YOY in pp) in % of all Swiss access ports of Switzerland Swiss Wholesale market 5G+ 86% (+4
Slide 14: Drive transformation with AI and digital push
Execute Telco cost transformation Drive transformation with AI and digital push Telco cost Lever 'phygital' shops formats Telco cost savings 2025 in CHF mn, indicative • Shops with digital self-service features, like my Swisscom screen and self-service 50+ cabins • Enabling high quality service and
Slide 15: Execute on integration plan
Integrate Vodafone Italia and capture synergy potential Execute on integration plan Fastweb + Vodafone Mobile customer migration on track • Preparations to migrate Fastweb SIMs to own network almost completed • SIM migration starting in Q2/Q3 2025 • MVNO cost savings from H2 2025 onwards, totalling
Slide 16: B2C: first steps to stabilise Telco top line implemented in Q1
Stabilise B2C Telco top line and grow beyond core B2C: first steps to stabilise Telco top line implemented in Q1 Telco RGU Overall trends unchanged Retail price EUR/m base in k (YOY pro forma) • Overall RGU trends still negative, for mobile: t/o lower acquisition for market aggressiveness 2nd brand
Slide 17: B2C: underpin journey towards stabilisation with an enhanced value approach
Stabilise B2C Telco top line and grow beyond core B2C: underpin journey towards stabilisation with an enhanced value approach Telco Focus on value with main brands Multi-brand portfolio • Main brands: premium multi-product FMC penetration in % convergent. 2nd brand: mobile-only no-frills brand • Rei
Slide 18: B2B Telco and IT: exploit momentum to fuel growth in IT
Scale up B2B IT B2B Telco and IT: exploit momentum to fuel growth in IT Telco IT RGU IT revenue Focus on both - maintaining base in k (YOY pro forma) Develop AI offerings further in EUR mn (YOY pro forma) and growing RGU base • 'Nexxt AI Factory' and 'MIIA': • Grow in mobile (also driven by E2E solu
Slide 19: Network and Wholesale Telco: keep on growing on the best infrastructure
Scale up Wholesale Network and Wholesale Telco: keep on growing on the best infrastructure Network Wholesale Telco Pop coverage UBB lines Continuous 5G expansion on in % UBB business growing in k (YOY pro forma) the most awarded mobile • Revenues increase double Ambition network in Italy 2025: ~79%
Slide 20: Financial results
3 Financial results Eugen Stermetz CFO Swisscom 20
Slide 21: Group revenue and EBITDAaL
Group revenue and EBITDAaL Revenue and EBITDAaL development as anticipated Revenue in CHF mn 1 Decline in Telco service revenue and lower hard- and software sales, only partially -41 (-1.1%) -47 offset by IT and Wholesale growth (-1.2%) -24 2 Nearly stable thanks to higher IT top line -8 -9 -6 3'759
Slide 22: Group CAPEX and OpFCF
Group CAPEX and OpFCF OpFCF adjusted higher, driven by lower CAPEX in Switzerland and Italy CAPEX in CHF mn 1 Extra-ordinary spendings in wireless network and IT in 2024 Q1 24 Adjustments and pro forma Switzerland Italy1 Others2 currency3 Q1 25 2 One-time effects from major IT projects and customer-
Slide 23: Switzerland revenue and EBITDAaL
Switzerland revenue and EBITDAaL EBITDAaL adjusted broadly stable Revenue in CHF mn 1 Telco service revenue with moderate decrease (CHF -10mn) -24 2 Lower Telco service revenue (CHF -16mn) +7 0 (-1.2%) and lower hard- and software sales (low -6 margin) partially compensated by IT service 1'986 (-0.6
Slide 24: Switzerland EBITDAaL drivers
Switzerland EBITDAaL drivers Telco service revenue and cost savings in line with guidance Telco EBITDAaL adjusted IT EBITDAaL in CHF mn and YOY changes in CHF mn and YOY changes 1 Delivery in cost savings (as 1'294 expected) despite higher 295 -258 margin advertising costs for 'we are 362 1'589 -491
Slide 25: Stable OpFCF from Switzerland
Switzerland CAPEX and OpFCF Stable OpFCF from Switzerland CAPEX in CHF mn 1 Primarily due to non-recurring CAPEX Wireless Wireline Backbone & into Telco cloud assets in prior year network access network infrastructure IT Other Q1 25 62 185 2 Due to extra-ordinary licence 423 expenses in Q1 24 t/o fi
Slide 26: Italy revenue and EBITDAaL
Italy revenue and EBITDAaL Revenue stable and EBITDAaL development as expected Revenue in EUR mn 1 Telco service revenue decline (EUR -35mn) mainly related to Vodafone brand wireless partially compensated by strong market +22 -8 traction in energy business (+ 2.8%) (- 0.4%) 2 Continued growth in IT
Slide 27: Italy EBITDAaL drivers
Italy EBITDAaL drivers EBITDAaL adjusted impacted by ongoing Telco erosion, mainly in B2C W- EBITDAaL adjusted in EUR mn and YOY changes 335 1'818 1'281 202 -861 margin 510 1 Primarily driven by ongoing competitive pressure 23.5% -529 in wireless (EUR -30mn) as well as in wireline 771 428 (EUR -17mn
Slide 28: Italy CAPEX and OpFCF
Italy CAPEX and OpFCF OpFCF higher driven by lower Capex CAPEX in EUR mn 1 Fastweb's FWA strategy change (rollout Wireless Wireline Backbone & stop of dedicated network) in 2024 network access network infrastructure IT Other Adjustments1 Q1 25 2 Completion of major IT projects at -68 t/o -3 Vodafone
Slide 29: On track to achieve planned synergies in 2025
Italy synergies and integration cost On track to achieve planned synergies in 2025 Ramp-up plan 2025-2029 Q1 2025 update Synergy realisation Synergies in EUR mn Target FY 25 ~60 100% ~90% Run-rate: EUR ~600mn ~70% Direct cost: EUR ~240mn Realised in Q1 25 2 Indirect cost: EUR ~300mn ~40% CAPEX: EUR
Slide 30: Group free cash flow
Group free cash flow OpFCF stable, FCF higher due to improved NWC in CHF mn +54 +5 -5 -46 498 498 -35 471 1 3 Q1 25 OpFCF Δ +28 -19 +9 +280 +7 +5 -16 -12 +273 4 470 +19 489 Q1 24 -226 -2 -10 2 -30 -23 198 OpFCF Vodafone OpFCF Change in Change in defined Net interest Income Other FCF Italia NWC benef
Slide 31: Group net income
Group net income Net income impacted by PPA amortisation and additional interest expense in CHF mn 1'686 1'277 1'277 409 tax rate1 -773 Q1 25 17.0% -394 519 -77 -75 367 EBITDAaL Δ -90 +284 +194 +237 +431 -251 -229 -49 -63 +24 -88 1 1 1 2 3 1’367 -284 172 1’255 tax rate1 1’083 Q1 24 17.9% -522 -165 -
Slide 32: Guidance 2025
Guidance 2025 Guidance for full-year 2025 confirmed Financials FY 2024 Guidance FY 2025 Group Group Switzerland2 Italy2 Group4 Switzerland Italy CHF mn CHF mn CHF mn EUR mn CHF bn CHF bn EUR bn restated pro forma1 pro forma Revenue 11'017 15'358 7'976 7'372 Revenue 15.0-15.2 7.9-8.0 ~7.3 Incl. EUR c
Slide 33: Q&A
Q&A 33
Slide 34: Appendix
34 Appendix ?:swisscom
Slide 35: Group - adjusted EBITDAaL
Appendix Group - adjusted EBITDAaL in CHF mn 2024 pro forma 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDAaL 1'367 1'367 1'350 1'076 5'044 1'277 -90 Regulatory litigations -24 -24 0 +24 Transaction cost Vodafone Italia 6 7 5 42 60 0 -6 Restructuring cost 13 13 0 Adjustments Switzerland -18 7
Slide 36: Group - adjusted CAPEX and OpFCF
Appendix Group - adjusted CAPEX and OpFCF in CHF mn 2024 pro forma 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CAPEX -897 -715 -733 -770 -3'115 -779 +118 INWIT consolidation CAPEX 43 7 8 10 68 7 -36 Integration cost CAPEX 3 +3 Adjustments Italy 43 7 8 10 68 10 -33 Adjustments CAPEX 43 7 8 10 68
Slide 37: Switzerland - adjusted EBITDAaL, CAPEX and OpFCF
Appendix Switzerland - adjusted EBITDAaL, CAPEX and OpFCF in CHF mn 2024 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDAaL 886 817 847 779 3'329 865 -21 Regulatory litigations -24 -24 +24 Transaction cost Vodafone Italia 6 7 5 42 60 -6 Restructuring cost 13 13 Adjustments EBITDAaL -18 7 5 55
Slide 38: Italy - adjusted EBITDAaL, CAPEX and OpFCF
Appendix Italy - adjusted EBITDAaL, CAPEX and OpFCF in EUR mn 2024 pro forma 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDAaL 480 416 496 294 1'686 422 -58 Integration cost OPEX 176 176 6 +6 Adjustments EBITDAaL 176 176 6 +6 EBITDAaL adjusted 480 416 496 470 1'862 428 -52 CAPEX -477 -304 -31
Slide 39: Cautionary statement regarding forward looking statements
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
Slide 40: 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 40
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