Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — Q1 2012 Earnings Presentation

22 slides from Sunrise Communications Ag Class A's earnings presentation, May 24, 2012

  1. Slide 1: Financial Results January – March 2012

    May 24, 2012 Sunrise Communications Holdings S.A. Financial Results January – March 2012

  2. Slide 2: Key messages

    Key messages Sunrise continues its good financial performance driven by strong postpaid and LLU subscriber base growth:  Revenue growth from 467.3 to 509.3 million or +9.0% YoY thanks to continued growth of valuable mobile postpaid customer base  On the basis of attractive rate plans, mobile postp

  3. Slide 3: Mobile subscribers and ARPU development

    Mobile subscribers and ARPU development Mobile subscribers (‘000) Blended ARPU (CHF) 43.5 41.9 2'071 2'116 2'123 2'020 2'040 4.3 4.1 1'070 1'105 1'132 1'015 1'048 52% 52% 53% 50% 51% 37.8 39.3 1'005 992 1'001 1'011 991 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-11 Q1-12 Prepaid Postpaid % Postpaid Originating

  4. Slide 4: Landline bundled subscribers and ARPU development

    Landline bundled subscribers and ARPU development Bundled (DSL/Voice) subscribers (‘000) Bundled ARPU voice and internet (CHF) 358 362 366 366 365 75% 77% 71% 74% 69% 79.4 80.9 270 276 280 246 259 48.4 51.8 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-11 Q1-12 xDSL thereof LLU %share of LLU ARPU AMPU Leverage o

  5. Slide 5: Revenue, gross profit and EBITDA

    Revenue, gross profit and EBITDA Revenue EBITDA / EBITDA margin CHF million CHF million 529 521 509 499 33 488 178 51 32 467 31 30 152 146 142 141 33 9% 2% 36% 1% (2%) (6%) (6%) 30% 30% 30% 496 470 468 478 459 27% 434 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Revenue (excl. H

  6. Slide 6: Overview of results

    Overview of results Income / Capex /Cash flow Quarter CHF million Q1 2012 Q1 2011 Mobile 317 291 Landline Services 148 133 of which hubbing 32 33 Landline Internet 44 44 Revenues 509 467 % growth 9.0% - Revenues excl. Acquisition of NextiraOne 486 467 % growth 4.1% Revenues (excl. hubbing) 478 434 %

  7. Slide 7: Operational trends

    Operational trends © Sunrise 24.05.2012 7

  8. Slide 8: Mobile – operational trends

    Mobile – operational trends Subscriber (‘000) ARPU (CHF) Comments +3.9% +5.1% 43.5  Mobile subscriber base up 5.1% YoY 2'123 2'020 41.9 driven especially by strong intake of 4.3 4.1 postpaid customers  Continued strong demand for smart phones 1'015 1'132 +11.5%  ARPU increased by 3.9% to CHF 43.5

  9. Slide 9: Landline retail bundles – operational trends

    Landline retail bundles – operational trends Subscriber (‘000) ARPU/AMPU (CHF) Comments +1.9%  Growth in double play connections +1.9% (landline retail voice and ADSL) of 365 358 +1.9% YoY 79.4 80.9  Share of LLU increased by +13.9% YoY (More than CHF 100 million invested - 85% household coverage)

  10. Slide 10: Landline voice – operational trends

    Landline voice – operational trends Subscriber (‘000) ARPU (CHF) Comments  Single play landline voice customers (31.1%) continue to decline  Subscribers churn to double play +3.5% products, off the Sunrise network or are substituting their service with mobile  ARPU increase driven by increasing U

  11. Slide 11: Capital expenditure

    Capital expenditure CAPEX Comments CHF million Mobile Network:  Rollout of UMTS/HSPA and GSM equipment 4 25  Voice over IP 2 4 15  Network infrastructure Landline Network:  IPTV rollout  Corporate Ethernet product 3 months Mobile IT Landline 3 months development 2011 network Development investm

  12. Slide 12: Net cash debt development

    Net cash debt development Net debt Dec 31, 2011 Mar 31, 2012 CHF million Term Loan A 463 457 Term Loan B (1) 309 305 Term Loan B (new) (2) 326 319 Senior Secured Notes (3) 751 747 Total senior debt 1'849 1'828 Senior Notes (4) 683 675 Total cash borrowings 2'532 2'503 Fair value of cross currency sw

  13. Slide 13: Update on markets and operations

    Update on markets and operations © Sunrise 24.05.2012 13

  14. Slide 14: Spectrum auction result

    Spectrum auction result • Very large spectrum allocation in 800 and 900 MHz bands (50MHz) similar to Swisscom and Excellent superior to Orange – sub-GHz allocation much larger than in other European countries spectrum • Increased 1,800 MHz allocation (40MHz) providing high capacity and top quality (

  15. Slide 15: A new partnership: Sunrise and Huawei

    A new partnership: Sunrise and Huawei • Sunrise has chosen Huawei, the global network technology leader, to further enhance its mobile and fixnet infrastructure • Huawei supplies 45 of the world’s 50 largest telecom operators, with over 140,000 employees in more than 140 countries • Sunrise and Huaw

  16. Slide 16: Launch of network quality program TQ Net

    Launch of network quality program TQ Net • Sunrise has launched a network quality program TQ Net (Top Quality Net) which will leverage its anticipated spectrum allocation and partnership with Huawei to provide best-in-class network experience for customers • Plans for upcoming months and years: lead

  17. Slide 17: Sunrise TV completes residential portfolio

    Sunrise TV completes residential portfolio • Sunrise is the only full service alternative in the market to offer mobile, fixnet, internet and IPTV from one source • Top performance: • Superior HD choice • Unique ComeBack TV • Competitive Video on Demand offer • Easy-to-use interface • Best value: •

  18. Slide 18: Product innovations May/June 2012

    Product innovations May/June 2012 Sunrise strengthens its position as best value for money provider unique propositions – best value to the customer – voice, data and SMS from New All in flatrates New All in packages 21.06.12 Roaming innovation Sunrise flat Sunrise flex unlimited calls, surf and new

  19. Slide 19: Best value positioning transferred to hardware offers

    Best value positioning transferred to hardware offers best devices – all in tariffs – best customer experience Smartphone share of gross adds (%) 100% 1.- CHF Sunrise flat 4 24 months 0% Jan 11 Mrz 11 Mai 11 Jul 11 Sep 11 Nov 11 Jan 12 Mrz 12 Samsung Galaxy S III All in – calls, surf, SMS/MMS • Late

  20. Slide 20: Questions & answers

    Questions & answers © Sunrise 24.05.2012 20

  21. Slide 21: Disclaimer

    Disclaimer This Presentation and any materials distributed in connection herewith (the "Presentation") include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, S

  22. Slide 22: Thank you

    Thank you © Sunrise 24.05.2012 22

Sunrise Communications Holdings — Q1 2012 Earnings Presentation on 6ix