Swisscom AG · SIX:SCMN
Swisscom — Bank am Bellevue Seminar, Flims (January 2014)
17 slides from Swisscom's conference presentation, Jan 10, 2014
Slide 1: Swisscom: 'investing for sustainable returns'
Swisscom: ‘investing for sustainable returns’ Mario Rossi, CFO Swisscom Bank am Bellevue Seminar Flims, Hotel Waldhaus 10 January 2014
Slide 2: Agenda
Agenda 2 1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013
Slide 3: Embracing changes by IP adoption
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Embracing changes by IP adoption IP makes customer choice and competition global 3 Pre “IP”, customers Individual – unconnected – services offered only by local provider: mobile telephony, fixed telephony, early could only use loc
Slide 4: Global competitors don't need to invest locally
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Embracing changes by IP adoption Global competitors don’t need to invest locally 4 OTT providers can offer their services globally – by using local internet access at “no cost” The “only” reason for To have first-class customers t
Slide 5: Investing into local networks & services
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Investing into local networks & services Quality of networks is key for best user experience 5 Mobile Spectrum: Swisscom has more 70 62 mobile spectrum (i.e. 60 Available MHz per million inhabitants 51 w/o TDD capacity) available
Slide 6: Result of long track record of investments pays off
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Investing into local networks & services Result of long track record of investments pays off 6 Multiple sources • Number 1 in Europe in delivery of average speed (Akamai study) confirm Swisscom’s strength of network • Number 2 in
Slide 7: Quality in Italy also delivers higher market share of net adds
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Investing into local networks & services Quality in Italy also delivers higher market share of net adds 7 … Network KPIs indicate that FASTWEB operates the most performing and reliable infrastructure in Italy... Quality of Fastweb
Slide 8: Making money in a fixed cost business is about scale & share
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Making money in a fixed cost business is about scale & share Blended market share and FCF correlate, also internationally 8 FCF per customer FCF per POP blended market share FCF p.a. in 600 65% weigthed avg Capex/pop CHF 63% & Mar
Slide 9: Leveraging new tariff paradigms
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Leveraging new tariff paradigms IP has changed what and how operators can charge for usage 9 In the “old” switched “TDM” world (1998): Revenues (CHF mm) 8'000 • CHF 5.1 bln out of total 6.9 bln revenues were usage based: 75% 7'000
Slide 10: Infinity driving ARPU uptick
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Infinity driving ARPU uptick Strong continuation of positive ARPU trend 10 ARPU development of customers changing in the given quarter 8 from non-Infinity to Infinity (incl. roaming impact) 6 6 With obvious right 4 graders having
Slide 11: Offering smart bundles
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Offering smart bundles Business model for local telco can no longer rely on usage based charging 11 CHF mm per quarter, Swisscom Switzerland traffic & access revenues Relative share 1'650 1'682 1'648 1'653 1'682 1'642 1'648 1'664
Slide 12: Organisational change, creating Enterprise Customers unit
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Organisational change, creating “Enterprise Customers” unit and “delayering” Swisscom Switzerland Simplifying the previous structure 12 CEO Swisscom Group Group Strategy & Group Security Communications Board Services* & Responsibi
Slide 13: Group results: Revenues
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Group results Revenues 13 in CHF mm w/o exceptionals Q1: -60 Without FX, -47 Q2: +4 hubbing and M&A Q3: +9 ∑ effects, revenue went down CHF Q1: -21 -8 -9 -0 -15 -7 -8 - 68 47 mm YOY (-0.6%), Q2: +22 -4 -15 -0 -0 +1 +39 +43 stable
Slide 14: Group results: EBITDA
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Group results EBITDA 14 in CHF mm w/o exceptionals Q1: -76 -108 Q2: -55 EBITDA w/o Q3: +23 ∑ exceptionals down CHF 108 mm. Q1: -38 -10 -10 -5 -13 +9 - 67 Q2: -18 -9 -9 -16 -3 -0 -55 Q3: +17 -1 -11 +6 +12 +1 +24 EBITDA of Swisscom
Slide 15: Group results: Net Result
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Group results Net Result 15 in CHF mm In first nine month 2013, net income of the group amounts to CHF 1,273 tax rate mm. 18.9% EPS 24.42 Decrease of net income is mainly 3,248 -1,501 1,747 -162 -34 +18 -296 1,273 -8 1,265 driven
Slide 16: Guidance
1. Vision 2. Strategy 3. Execution 4. Organisation 5. Q3 results 2013 Guidance No change to previous guidance 16 CHF bln 2012 A 2013 E*) Splits into: Revenues 11.384 >11.4 ~ CHF 9.5 bln for Swisscom w/o Fastweb + € 1.6 bln for Fastweb (constant yoy without hubbing) EBITDA 4.477 >4.25 CHF 3.64 bln fo
Slide 17: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements 17 ”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
Swisscom — Bank am Bellevue Seminar, Flims (January 2014) on 6ix