Swisscom Ag · SIX:SCMN
Swisscom — FY2010 Earnings Presentation
79 slides from Swisscom's earnings presentation, Feb 17, 2011
Slide 1: Swisscom's “Tablets” – Results 2010 and Plans 2011
Swisscom’s “Tablets” Results 2010 and Plans 2011 Investor & Analyst Presentation Zürich, 17 February 2011
Slide 2: Swisscom's “Tablets” – Agenda
Swisscom’s “Tablets” – Agenda: Introduction : an overview of performance & priorities – Carsten Schloter, CEO B. Swisscom Performance & A. Market Performance C. Special Issues 2011 Priorities 1. 2. 3. Switzerland Swisscom − Wireless success factors − Push fibre rollout − Manage regulation & telco la
Slide 3: Key Messages
Key Messages 3 A. Market Performance B. Performance & Priorities C. Special Issues Highest customer Continued cost Regulatory cases & satisfaction control spectrum auction Be prepared for Very strong mobile Continued inner market data growth and investment into consolidation new TV USP “Best (Switze
Slide 4: Market performance – Why Swiss companies “earn more”
1. 2. 3. A. Market performance – Why Swiss companies “earn more” 4. 7. 5. 8. 6. 9. 10. 4 Switzerland Germany Italy France Netherlands UK EBIT 100 100 100 100 100 100 Debt 500 500 500 500 500 500 Interest Rate*) 2.3% 3.5% 4.6% 3.8% 3.7% 4.1% low interest…. Interest 11.5 17.5 23.0 19.0 18.5 20.5 EBT 8
Slide 5: Relative competitive strength – debt/interest ratios
1. 2. 3. A. Market Performance - Relative competitive strength 4. 7. 5. 8. 6. 9. 10. 5 Financial strength of (mother companies of) players in Swiss market rather different Debt/interest ratios in 2009 Net debt and avg. cost of debt in 2009 Bubble size = OpFCF proxy in bn CHF* Net debt Net interest/
Slide 6: Relative competitive strength – financial strength of CH competitors
1. 2. 3. A. Market performance - Relative competitive strength 4. 7. 5. 8. 6. 9. 10. 6 Financial strength of players in Swiss market rather different Financial strength of CH competitors •Absolute EBITDA and cash flow level of main 55.2%* competitors in Switzerland significantly below 43.5% Swisscom
Slide 7: Swisscom Performance – Financially: absolute
1. 2. 3. B. Swisscom Performance – Financially: absolute 4. 7. 5. 8. 6. 9. 10. 7 Quarterly results, Q1 2009 – Q4 2010 CHF mm *) 1200 800 400 0 EBITDA EBIT Net income Swisscom OpFCF shareholders Q1 09 Q2 09 Q3 09 Q4 09 Q1 2010 Q2 2010 Q3 2010 Q4 2010 *) all figures as reported Normal seasonal pattern
Slide 8: Swisscom Performance – Financially: costs 2010
1. 2. 3. B. Swisscom Performance – Financially: costs 2010 4. 7. 5. 8. 6. 9. 10. 8 Cost development Swisscom Switzerland in CHF mm *) Total comparable -54 MCHF -48 +39 +15 -33 -21 3'078 + All IP + Customer 3'030 interaction - Savings (mainly FTE reductions, rent, external employees) + TV push + Incr
Slide 9: Financially: cost outlook
1. 2. 3. B. Swisscom Performance – Financially: cost outlook 4. 7. 5. 8. 6. 9. 10. 9 Measure for cost containment Swisscom Switzerland Measures Impact before in 2011 2011 later • All IP 9 Ò Ô • Simplification Î Ô customer 9 reduction interaction Ô Cost 9 Î • Internal process + system optimization 9
Slide 10: Swisscom Performance – Financially: growth
1. 2. 3. B. Swisscom Performance – Financially: growth 4. 7. 5. 8. 6. 9. 10. 10 Change YoY, total Swisscom Group in constant currency (@ CHF 1.40/€) Revenue Growth YOY *) 5% - 4% - Q3 2010 3% - Q2 2010 2% - Q1 2010 1% - Q1 2009 Q4 2010 EBITDA Growth YOY*) -4% -3% -2% -1% 1% 2% 3% 4% 5% 6% -1% - Q4 2
Slide 11: Price & volume effects 2010 vs 2009
1. 2. 3. B. Swisscom performance – price & volume effects 2010 vs 2009 4. 7. 5. 8. 6. 9. 10. 11 CHF mm. Price effect Volume effect Σ Mobile -Prices Core business Customer growth+new services Traditional Traditional Data (w.o. SMS) Data (w.o. SMS) -278 -152 +249 +260 + 79 Fixed -77 -67 -144 Conver
Slide 12: Swisscom performance – MTR rates
1. 2. 3. B. Swisscom performance – MTR rates 4. 7. 5. 8. 6. 9. 10. 12 Price index for selected services MTR rates Swisscom on EU Level, and with ever lower asymmetry compared to Swiss competitors causing lower net outpayments
Slide 13: Swisscom performance – roaming rates
1. 2. 3. B. Swisscom performance – roaming rates 4. 7. 5. 8. 6. 9. 10. 13 Standard tariff Voice Roaming Western Europe (CHF/Min) Swisscom 0.85 Coop 0.85 Orange 1.70 Sunrise1 1.70 Talk Talk Mobile 1.70 Yallo 1.80 1 tariff within bandwidth 1.70 – 2.20 Roaming voice – Swisscom has most attractive tarif
Slide 14: Swisscom performance – mobile data
1. 2. 3. B. Swisscom performance – mobile data 4. 7. 5. 8. 6. 9. 10. 14 Smart phones: 29% Quarterly revenues SIM cards of postpaid mobile new data (in CHF mm) sold for use customer base in iPads 140 1500 (Swisscom, thousands per end of each quarter) Number of Smart phones sold 1300 seasonal New 120
Slide 15: Swisscom performance – wireline substance
1. 2. 3. B. Swisscom performance – wireline substance 4. 7. 5. 8. 6. 9. 10. 15 Retail (lines, broadband, IPTV) Wholesale TOTAL FY 08 5‘008 462 5‘470 3m 09 5‘035 467 5‘502 HY 09 5‘054 472 5‘526 9m 09 5‘061 478 5‘539 FY 09 5‘101 484 5‘585 3m 10 5‘114 485 5‘599 HY 10 479 5‘609 5‘130 9m 10 5‘158 478 5‘6
Slide 16: Special issues – regulation
C. Special issues – regulation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 16 Main cases • LRIC/ULL: Federal Administrative Court overruled ComCom: telecoms regulator cannot impose price cuts where competitors had not contested these. One possible civil complaint may be lodged (from an operator with whom Swissco
Slide 17: Special issues – revision of telecoms law
1. 2. 3. 4. 5. 6. C. Special issues – revision of telecoms law 7. 8. 10. 9. 17 Process overview: so far no revision of telecoms law supported by Swiss government Initiative to Analysis by Swiss government of the Decision not to Review by commission Discussion change law functioning of market and tel
Slide 18: Special issues – mobile spectrum
1. 2. 3. 4. 5. 6. C. Special issues – mobile spectrum 7. 8. 10. 9. 18 Overview of existing and new mobile spectrum Kat. A Kat. A Legend: 800 MHz 1 2 3 4 5 6 1 2 3 4 5 6 FDD (Frequency-Duplex) Swisscom today (2x49.4 + 5 MHz) (new LTE) TDD (Time Division Orange today (2x47.2 + 5 MHz) Kat. B Kat. B Dup
Slide 19: Special issues – Fastweb minority buyout
1. 2. 3. 4. 5. 6. C. Special issues – Fastweb minority buyout 7. 8. 10. 9. 19 Completion of buyout to be expected in March 2011 • Offer announced @ 18€/ share in September 2010 • Acceptances as at 12 November 2010 lead to ownership for Swisscom of 94.834% • Swisscom subsequently purchased 130,000 sh
Slide 20: Agenda – Switzerland
Swisscom’s “Tablets” – Agenda: Introduction : an overview of performance & priorities B. Swisscom Performance & A. Market Performance C. Special Issues 2011 Priorities 1. 2. 3. Switzerland Swisscom − Wireless success factors − Push fibre rollout − Manage regulation & telco law − Wireline success fac
Slide 21: Market Performance, wireless success factors
1. 2. 3. A1. Market Performance, wireless success factors 4. 7. 5. 8. 6. 9. 10. 21 7'619 Jan..Dec Δ PY 2009 Service Revenue * Subscriber/lines in t# PY ACT RES Corp. Postpaid Voice -68 Wireless 5'602 5'828 +97 +129 Postpaid 3'426 3'615 +60 +129 RES Wireless Postpaid others +175 Prepaid 2'176 2'213 +
Slide 22: Wireless success factors – five cornerstones
1. 2. 3. A1. Market Performance, wireless success factors 4. 7. 5. 8. 6. 9. 10. 22 Moderate Smartphone TV & Bundle wireline voice success story growth access loss High customer Cost savings satisfaction 5 cornerstones of success, also going forward
Slide 23: Wireless success factors – devices sold and smartphone share
1. 2. 3. A1. Market Performance, wireless success factors 4. 7. 5. 8. 6. 9. 10. 23 Jan..Dec Sold Devices Smartphone share Devices Total SCS 2009 1359 2010 1378 Smartphones SCS 546 40% 721 52% t/o Apple 258 403 t/o Android 5 104 t/o others 176 157 Devices Postpaid RES 965 945 Smartphones Postpaid RES
Slide 24: Wireless success factors – postpaid subscribers
1. 2. 3. A1. Market Performance, wireless success factors 4. 7. 5. 8. 6. 9. 10. 24 Postpaid Subscribers (000) 3615 3426 3238 1309 Corporate * 1180 1067 RES Flat Abos 102 118 127 RES Data Abos 334 + 386 720 RES Surf Abos 1980 1754 1381 RES old tariffs 2008 2009 2010 Increase of RES surf subscription
Slide 25: Wireless success factors – postpaid ARPU
1. 2. 3. A1. Market Performance, wireless success factors 4. 7. 5. 8. 6. 9. 10. 25 Postpaid ARPU* RES (in CHF) Postpaid ARPU RES (in CHF)* Postpaid ARPU* SCS (in CHF) Postpaid ARPU SCS (in CHF)* 69 68 67 65 2% VAS 2% VAS 3% 2% 11% 7 12% 8 Traffic Roaming 17% 12 12 Traffic Roaming 18% 7% 5 9% 6 Data
Slide 26: Wireless success factors – data traffic
1. 2. 3. A1. Market Performance, wireless success factors 4. 7. 5. 8. 6. 9. 10. 26 • iPad tariffs launched in 2010 • Measures to handle data volumes: • Tablets with voice function (e.g. – Net investments (see chapter 2) Galaxy tab) are sold with surf tariffs. – Mobile data differentiation pricing 12
Slide 27: Market Performance, churn rates
1. 2. 3. A1. Market Performance, churn rates 4. 7. 5. 8. 6. 9. 10. 27 Churnrate Wireless Churnrate Wireline (incl. Bundles) Wireless Swisscom TV & Broadband Benchmark Q3 2010: France 22 %, As a result of bundling offers, churn of Germany 23 %, Netherlands 25% SCTV and Broadband destinctively reduced
Slide 28: Wireline: ARPU
1. 2. 3. A1. Market Performance, wireline: ARPU 4. 7. 5. 8. 6. 9. 10. 28 ARPU Voice Access ARPU Voice Access ARPU Voice Traffic ARPU Voice Traffic ARPU Broadband ARPU Broadband Standalone Access Standalone Access 37 37 26 26 24 22 2009 2010 2009 2010 2009 2010 ARPU TV Trio ARPU ARPU TV Add-ons TV Ad
Slide 29: Wireline success factors: TV
1. 2. 3. A1. Market Performance, wireline success factors: TV 4. 7. 5. 8. 6. 9. 10. Digital TV Volumes in T# & Market Share 1729 29 Digital TV volumes (000) and market share 33% 568 Satellite/Terrestrial* 1345 1068 510 16% 280 CATV/ Net Integrators* 811 440 224 Target: 600k 350 27% 460 UPC Cablecom*
Slide 30: Wireline success factors: bundles
1. 2. 3. A1. Market Performance, wireline success factors: bundles 4. 7. 5. 8. 6. 9. 10. 30 Subscribers to bundles Subscribers RES (t#) 199 35 RES Vivo Casa 45 164 RES Casa Trio Vivo Casa 4*/5* are sold with 45 fibre as well 2009 2010 Launch Casa Trio Nov. 2009 Launch Vivo Casa Dec. 2010 Nearly 50%
Slide 31: Wireline success factors: bandwidth
1. 2. 3. A1. Market Performance, wireline success factors: bandwidth 4. 7. 5. 8. 6. 9. 10. 31 FTTH marketing – first findings from local promotions Bundle split 2play/3play of FTTH customers 3play bandwidth profiles Vivo Casa on Fibre [%] 100 29 2play 7% 93% 3play 54 17 Sum 50 Mbit/s 20Mbit/s Up to
Slide 32: Wireline success factors: limit the loss
1. 2. 3. A1. Market Performance, wireline success factors: limit the loss 4. 7. 5. 8. 6. 9. 10. 32 Net adds wireline access (000) NetAdds Wireline Access (in t#) 6.6 7.3 7.9 ULL Share 5.8 in % 4.5 ULL 3.3 Expected 2.4 0.0 0.1 0.9 1.6 development based on 0.3 sunrise customer base and their network 4
Slide 33: Market Performance, cost control
1. 2. 3. A1. Market Performance, cost control 4. 7. 5. 8. 6. 9. 10. 33 Indirect cost Indirect cost 1461 1455 TV Push Cost management – key foci 2010 & 2011 • Payback of convergent projects (OneCRM) • Internal process optimization 877 • Increase of online customer interaction 841 RES w /o TV Push – N
Slide 34: Readiness to change operator
1. 2. 3. A1. Market Performance, readiness to change operator 4. 7. 5. 8. 6. 9. 10. 34 Readiness Readinessto to change operator change operator Mobile Wireline Access Broadband 6% 4.8% 4.6% 4% 4.4% 3.8% 3.7% 3.6% 2% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 Overall very low readiness to cha
Slide 35: Customer satisfaction
1. 2. 3. A1. Market Performance, customer satisfaction 4. 7. 5. 8. 6. 9. 10. Customer satisfaction residential customers 35 An independent customer survey1 shows: • Customer satisfaction across all services constantly high at approx. 8.5 on a scale from 1 (very bad) to 10 (very good) • Well ahead of
Slide 36: Agenda – Switzerland
Swisscom’s “Tablets” – Agenda: Introduction : an overview of performance & priorities B. Swisscom Performance & A. Market Performance C. Special Issues 2011 Priorities 1. 2. 3. Switzerland Swisscom − Wireless success factors − Push fibre rollout − Manage regulation & telco law − Wireline success fac
Slide 37: Performance & Priorities – fibre demand
B2. Swisscom Performance & Priorities - fibre 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 37 1’000 Mbps Multi-room (1 Gbps) 4k/8k TV Nielsen’s law +650% Point-to-MP in 5 years telepresence All data and content online Remote 100 Mbps computing Multi-room 3D/HD TV Surveillance Video conferencing Low latency for on
Slide 38: Performance & Priorities – fibre rollout
B2. Swisscom Performance & Priorities - fibre 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 38 HH coverage [%] ADSL ADSL2+ & wireless Rural areas up to 5 Mbps up to 8 Mbps (e.g. HSPA+/LTE) Beyond universal service obligation VDSL >8 Mbps Cable/DOCSIS FTTC/VDSL Today: 20 Mbps Medium term competition ~80% Vectoring
Slide 39: Performance & Priorities – FTTH rollout map
B2. Swisscom Performance & Priorities - fibre 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 39 Pfyn Build alone Basel Winterthur Cooperation in negotiation St. Gallen Zürich Dietlikon Cooperation contract signed Solothurn Uster Zug Build/acquisition Biel started Bern Luzern Köniz Obwalden Freiburg Thusis Lausanne
Slide 40: Performance & Priorities – mobile capacity
B2. Swisscom Performance & Priorities – mobile capacity 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 40 2010 2011 and ongoing • Improve indoor and Improve coverage • 99.8% EDGE, 92% 3G on-train coverage to cope with increasing • 300 new 3G sites • Aim at near full 3G mobility & expectations coverage by 2015 • All
Slide 41: Best wireless network in Switzerland in 2010
B2. Swisscom Performance & Priorities – best wireless network 1. 2. 3. in Switzerland in 2010 4. 7. 5. 8. 6. 9. 10. 41 CONNECT and P3 have performed a 3 country, 11-network benchmark (AT, CH, DE) Service Measurements Swisscom Performance • Top score in voice call stability and speech quality in both
Slide 42: Performance & Priorities – mobile spectrum
B2. Swisscom Performance & Priorities – mobile spectrum 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 42 Spectrum availability plus ~90% Spectrum auction Spectrum strategy • New 800 Mhz and Swisscom will apply for 2600 Mhz spectrum spectrum auction to... • Existing and new • ensure continuity spectrum auctioned •
Slide 43: Performance & Priorities – cost control
B2. Swisscom Performance & Priorities – cost control 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 43 Objectives Measures Improved customer Modularisation of services, experience to defend or products & factory even extend loyalty processes initiated Cost efficiency (development, operations, maintenance) to increa
Slide 44: Performance & Priorities – enforce simplification
B2. Swisscom Performance & Priorities – enforce simplification 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2010 2011 and ongoing 44 • In operation, experienced • Enhancements in continuous developments Campaign, Lead and Converged CRM • Average call handling time Opportunity significantly reduced Management • Fu
Slide 45: Agenda – Fastweb Italy
Swisscom’s “Tablets” – Agenda: Introduction : an overview of performance & priorities B. Swisscom Performance & A. Market Performance C. Special Issues 2011 Priorities 1. 2. 3. Switzerland Swisscom − Wireless success factors − Push fibre rollout − Manage regulation & telco law − Wireline success fac
Slide 46: Agenda
Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 46 1. 2010 Results 2. The Priorities on FASTWEB Agenda – 2011 and Beyond
Slide 47: 2010 Results – FASTWEB Overall (1/2)
2010 Results – FASTWEB Overall (1/2) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 2010 47 YoY Change Actual (€Mln) % of Target YoY Change 2010 Discontinuities w/o Discontinuities BB Net Adds 80k N/A -50.5% Revenues 1,880 96% +1.5% Rev Recognition 35 Mln Revenues +3.3% EBITDA 503 87% -8.8% Rev Recognition 27 Mln R
Slide 48: 2010 Results – FASTWEB Overall (2/2)
2010 Results – FASTWEB Overall (2/2) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 48 FCF Evolution (€ Mln) EBITDA-Capex €76 Mln 55 Change in WC -€92 Mln 39 FY10 TAX Credits Buy Back* -€35 Mln FY08 FY09 VAT Case Partial Settlement -€46 Mln Ä Interest -€44 Mln Includes a Tax & Others -€16 Mln positive one off cash
Slide 49: 2010 Results – Value Business
1. 2. 3. 2010 Results – Value Business 4. 7. 5. 8. 6. 9. 10. 49 Medium • Strong orderbook • Double-digit revenues and cash-in growth Corporate • Orderbook mainly impacted by Confirm trends Value business delay of Consip bid • Double-digit revenues growth • Positive cash in performance Contracts sign
Slide 50: 2010 Results – Volume Business
1. 2. 3. 2010 Results – Volume Business 4. 7. 5. 8. 6. 9. 10. Italian Market Broadband Net Adds (‘000) PG. 50 FASTWEB Net Adds Market Share 2010 Trends • 8% market share of broadband net • Overall increase of adds vs 14% in 2009 competition with • Market share in 4Q at 5% and aggressive promos (2 ye
Slide 51: Agenda
Agenda 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 51 1. 2010 Results 2. The Priorities on FASTWEB Agenda – 2011 and Beyond
Slide 52: The Priorities on FASTWEB Agenda
1. 2. 3. The Priorities on FASTWEB Agenda 4. 5. 6. 7. 8. 9. 10. 52 performance in the Improve Go to Market and Ignite Growth To improve the 1. Partnerships to access additional customer bases for broadband upselling market 2. Structural improvement of inbound channels through monobrand stores 1 and
Slide 53: Partnerships – FASTWEB and SKY
1. 2. 3. 1 Partnerships – FASTWEB and SKY 4. 7. 5. 8. 6. 9. 10. PG. 53 To improve the performance in the market Joint commercial effort to increase the respective market penetration and to stabilize existing customer bases Improve Go to Market FASTWEB and SKY to sell the “Home Pack” i.e. a bundle
Slide 54: Improvement of Inbound Channels – Monobrand & Dealers
2 Improvement of Inbound Channels – 1. 4. 2. 5. 3. 6. Monobrand & Dealers 7. 8. 10. 9. PG. 54 To improve the performance in the market Improve inbound performance through higher customer proximity and stronger brand visibility Improve Go to Market Monobrand: four stores opened in 2H 2010 (Rome, Mi
Slide 55: Re-organization of the Microbusiness Segment
1. 2. 3. 3 Re-organization of the Microbusiness Segment 4. 7. 5. 8. 6. 9. 10. PG. 55 To improve the performance in the market Ignite growth in the Microbusiness segment by exploiting synergies with the Consumer BU The transfer of this business to the Consumer BU aims at the following goals Ignite Gr
Slide 56: Reduction of Technological Costs
1. 2. 3. 4 Reduction of Technological Costs 4. 7. 5. 8. 6. 9. 10. PG. 56 Reduce technological costs (Capex and Opex) Reduction of technological costs To improve FCF generation Cum. net savings of approx. €50/60 Mln Drivers of savings Reduction of customer Cost-to-Connect Higher efficiency in Cos
Slide 57: Reduction of the Overall Bad Debt Level
5 Reduction of the Overall Bad Debt Level 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. PG. 57 Reduction of the overall bad debt level Reduce the overall bad debt level To improve FCF generation FASTWEB overall bad debt provision/revenues is above industry benchmark due to the low cash in/turnover performance of
Slide 58: To Sum It Up – 2011 and Beyond
1. 2. 3. To Sum It Up – 2011 and Beyond 4. 5. 6. 7. 8. 9. 10. 58 performance in the Improve Go to Market and Ignite Growth To improve the market (Sky Partnership + Inbound Channels + Microbusiness Segment) 1 FASTWEB targets a market share of Broadband net adds of approx. 15% in 2011 AND AND To impro
Slide 59: Agenda – Swisscom Other
Swisscom’s “Tablets” – Agenda: Introduction : an overview of performance & priorities B. Swisscom Performance & A. Market Performance C. Special Issues 2011 Priorities 1. 2. 3. Switzerland Swisscom − Wireless success factors − Push fibre rollout − Manage regulation & telco law − Wireline success fac
Slide 60: Financial results: segment residential customers
1. 2. 3. 10. Financial results: segment residential customers 4. 7. 5. 8. 6. 9. 10. 60 Financials and operational data 12m 2010 31.12.2010 YOY • Net revenue up by 3.4%, driven by Service 1) revenue (+2.1%) and increasing revenue from the Net revenue in MCHF 5'190 3.4% sale of smart phones Direct cos
Slide 61: Financial results: segment SME
1. 2. 3. 10. Financial results: segment SME 4. 7. 5. 8. 6. 9. 10. 61 Financials and operational data 12m 2010 31.12.2010 YOY • Net revenue up by +2.6% YoY (price erosion Net revenue in MCHF 1) 1'175 2.6% compensated by higher number of subscribers and new data growth) Direct costs in MCHF -171 -3.4%
Slide 62: Financial results: segment corporate business
1. 2. 3. 10. Financial results: segment corporate business 4. 7. 5. 8. 6. 9. 10. 62 Financials and operational data 12m 2010 31.12.2010 YOY • Revenue of 1’858 MCHF up by 1.4%. Decline of 1) wireline revenue (voice lines and traffic volume) Net revenue in MCHF 1'858 1.4% overcompensated by rising pro
Slide 63: Financial results: segment wholesale
1. 2. 3. 10. Financial results: segment wholesale 4. 7. 5. 8. 6. 9. 10. 63 Financials and operational data 12m 2010 31.12.2010 YOY • Net revenue decreased by 192 MCHF Revenue from external customers in MCHF 748 -14.7% - lower mobile termination rates Intersegment revenue in MCHF 505 -11.1% - lower i
Slide 64: Financial results: segment network and support functions
1. 2. 3. 10. Financial results: segment network and support functions 4. 7. 5. 8. 6. 9. 10. 64 Financials and operational data 12m 2010 31.12.2010 YOY • Indirect costs down by 22 MCHF mostly driven by Personnel expenses in MCHF -651 -0.9% lower personnel expenses due to a lower number of FTE as well
Slide 65: Financial results: segment Fastweb
1. 2. 3. 10. Financial results: segment Fastweb 4. 7. 5. 8. 6. 9. 10. 65 Financials and operational data 12m 2010 31.12.2010 YOY • Revenues increased by 1.5% YoY – like for like Consumer revenue in MEUR 702 1% basis 3.3% (revenue recognition) - with a positive contribution from Consumer- and Executi
Slide 66: Financial results: segment Other
1. 2. 3. 10. Financial results: segment Other 4. 7. 5. 8. 6. 9. 10. 66 Financials and operational data 12m 2010 31.12.2010 YOY • External revenue up by 86 MCHF (+10.3%): Swisscom IT Services in MCHF 527 21.1% – IT Services up by 92 MCHF, mainly from new Swisscom Participations in MCHF 320 -1.2% grou
Slide 67: Financial results: on constant currency basis
1. 2. 3. 10. Financial results: on constant currency basis 4. 7. 5. 8. 6. 9. 10. 67 Change YoY (FY 2010 versus FY 2009) in CHF mm, total Swisscom Group +251 (+2.1%) +99 4 +103 (+3.8%) 264 +78 (+1.7%) +15 63 -13 = Reported = FX Effect a) = Result on constant currency Revenues EBITDA FCF proxy: EBITDA
Slide 68: Financial results: P&L breakdown
1. 2. 3. 10. Financial results: P&L breakdown 4. 7. 5. 8. 6. 9. 10. 68 4‘597 -1‘823 in CHF mm tax rate 21.9% -149 EPS CHF 2‘625 -261 -104 +28 -502 34.96 1‘786 +25 1‘811 (prior (4‘684) (-1‘832) (-163) (2‘689) (-281) (-68) (+43) (-460) (1‘923) (+3) (1‘926) year) tax rate EPS CHF 19.3% 37.18 SCM net Ot
Slide 69: Financial results: capex breakdown
1. 2. 3. 10. Financial results: capex breakdown 4. 7. 5. 8. 6. 9. 10. 69 Consolidated CAPEX – slightly decrease YoY (mainly FX-impact -59 MCHF) (in CHF mm) 2010 1'204 585 114 1‘903 2009 1'219 657 111 1‘987 Swisscom Switzerland Fastweb Others CAPEX of Swisscom Switzerland – trend to invest more into
Slide 70: Financial results: cash flow breakdown
1. 2. 3. 10. Financial results: cash flow breakdown 4. 7. 5. 8. 6. 9. 10. 70 Despite lower CAPEX and lower dividend payments to minority shareholders, operating free cash flow decreased by 173 MCHF due to higher decrease in pension fund obligation. Change in net working capital is positive despite e
Slide 71: Financial results: use of cash flow before M&A and debt reduction
10. Financial results: use of cash flow before M&A and debt 1. 2. 3. 4. 5. 6. reduction 7. 8. 10. 9. 71 21/share 100% of Operating Free Cash Flow 2,512 (CHF 48.50 / share) Cashflow generated -284 Net Interest paid in 2010 -365 Paid taxes -1‘088 Proposed ordinary dividends Usage of cashflow -775 Reta
Slide 72: Financial results: net debt development
1. 2. 3. 10. Financial results: net debt development 4. 7. 5. 8. 6. 9. 10. 72 Net debt Operating FCF 2010 Net debt EBITDA 10.1 CHF 2.5 bln (CHF bln) 2.7 0.7 9.1 Max. 2.0x 1.9x 1.0 4.6 8.8 -0.2 0.9 0.3 1.9 1.0 Purchase Fastweb minorities Interest, tax and other and other participations Dividends paid
Slide 73: Financial results: refinancing & maturity schedule
1. 2. 3. 10. Financial results: refinancing & maturity schedule * 4. 7. 5. 8. 6. 9. 10. 73 in CHF million 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >2020 Revolving Credit Facility 250 - Bonds - 250 550 1'250 500 - 600 1'500 - - 500 Swiss private placement 150 350 Foreign private placement 18
Slide 74: Dividend – partially from paid-in capital with tax advantage
1. 2. 3. 10. Dividend – partially from paid-in capital with tax advantage 4. 7. 5. 8. 6. 9. 10. 74 Dividend / share (CHF) 21 CHF 21 dividend 2010 to be paid on 29.4.2011 (CHF 16.80 net of withholding taxes. Ex-div date on 28.4.2011) 20 19 of which CHF9 19 from paid-in capital (being 18 the maximum a
Slide 75: Outlook Swisscom Group 2011
1. 2. 3. 10. Outlook Swisscom Group 2011*) 4. 7. 5. 8. 6. 9. 10. 75 CHF bln 2010 Actual 2011 Expected Exchange rate CHF/€ 1.37 1.30 Swisscom Revenues 12.0 >11.8 Group (including EBITDA 4.6 > 4.6 Fastweb) CAPEX 1.9 < 2**) Dividend/share 21 at least 21 (payable the year after) (proposed to General (up
Slide 76: Q&A
76 Q&A
Slide 77: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements 77 ”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 78: Backup: Accounting policy (IAS 19) changes and effects as per 1.1.2011
Backup: Accounting policy (IAS 19) changes and effects as per 1.1.2011 78 B/S as per 31.12.2010 B/S as per 1.1.2011 - reported - - restated - Net pension liabilities Pension liabilities on Balance 78 MCHF Pension on Balance 1‘037 MCHF Pension off Balance 1‘082 MCHF off Balance 123 MCHF total 1‘160 M
Slide 79: Backup: Group CAPEX - FTTH cooperations (fictive figures)
Backup: Group CAPEX - FTTH cooperations (fictive figures) 79