Swisscom Ag · SIX:SCMN
Swisscom — FY2020 Earnings Presentation
94 slides from Swisscom's earnings presentation, Feb 4, 2021
Slide 1: Swisscom FY 2020 results
Swisscom FY 2020 results Analyst and investor presentation February 4th, 2021
Slide 2: Welcome and agenda
Welcome and agenda 2 4 6 1 3 5 7 Strategy Fastweb Wrap-up update Alberto Calcagno, Urs Schaeppi, CEO CEO Fastweb Urs Schaeppi, CEO Highlights 2020 Swisscom Group Q&A Urs Schaeppi, CEO Switzerland financials Urs Schaeppi, CEO Mario Rossi, CFO 2
Slide 3: Highlights 2020
1 Highlights 2020 Urs Schaeppi, CEO Swisscom 3
Slide 4: Key achievements
1 Key achievements Another solid year with various highlights along our strategic priorities Leading Best customer Unique market Fastweb with ESG focus networks experience position in ICT sustainable growth pays off Win of all Swiss NPS leadership Leading in Cloud and 4.5% stake #1 in ESG w- network
Slide 5: Successful management of Covid-19 crisis
1 Successful management of Covid-19 crisis Pandemic with limited impacts (so far) and basis for acceleration of sector-specific opportunities Resilient Swisscom in 2020 Positive impulses for the future Performing networks Digital transformation Customer assistance enhanced Revision of cost base Busi
Slide 6: Market performance in Switzerland and Italy
1 Market performance in Switzerland and Italy Stable Swiss RGU base and leading across all segments. Fastweb's market position further strengthened Swisscom Switzerland Fastweb Net adds in k RGUs in k Market Share 2'043 2'747 53% 16% +43 (-0.4pp YOY) (+0pp YOY) +33 Broadband +22 -5 -5 -3 -2 +12 Q1 Q
Slide 7: Key financials in a nutshell
1 Key financials in a nutshell Solid underlying performance thanks to disciplined cost management in Switzerland and Fastweb growth Net EBITDA EBITDAaL 1) CAPEX OpFCF Net debt 5) revenue proxy CHF 11'100mn CHF 4'382mn CHF 4'082mn CHF 2'229mn CHF 1'853mn CHF 8'206mn (-3.1% YOY) (+0.6% YOY) (+0.4% YOY
Slide 8: Strategy update
2 Strategy update Urs Schaeppi, CEO Swisscom 8
Slide 9: The environment in a nutshell
2 The environment in a nutshell Telco revenues under pressure but digitalisation brings opportunities for growth and efficiency Sector Switzerland Italy • High CAPEX intensity • Economic environment robust • A price-sensitive market with • Monetisation challenging: non- • A mature market with a clea
Slide 10: Swisscom with a strong foundation for the future
2 Swisscom with a strong foundation for the future Market leader in Switzerland for residential customers, SMEs and major corporations Strongest brand and consumer confidence in Switzerland Technology leader and innovation pioneer that actively takes opportunities to inspire customers Successful cha
Slide 11: Swisscom strategy with proven pillars
2 Swisscom strategy with proven pillars #ready to take the chances of a networked future - in Switzerland as #1 and in Italy as attacker Best network Innovative products Best service Best Operational Efficient operations customer excellence Digital transformation experience Smart investments #ready
Slide 12: Swisscom's #ready roadmap for 2021 and beyond
2 Swisscom's #ready roadmap for 2021 and beyond Swisscom's ingredients to carry on successful operations and take future (digital) opportunities #ready with strong #ready to defend leading market commitments to shares in Switzerland corporate responsibility #ready to shape #ready to stimulate innova
Slide 13: The building blocks of Swisscom's innovation
2 The building blocks of Swisscom's innovation Innovation key to stimulate best customer experience and new growth Internet of things Best IoT platform and E2E solution provider Analytics and artificial intelligence Entertainment Development of artificial intelligence and Best offering on a connecte
Slide 14: Swisscom with strong commitment to corporate responsibility
2 Swisscom with strong commitment to corporate responsibility 2025 targets along SDG* set for people, environment and Switzerland #ready to support people #ready to protect the environment #ready for Switzerland • Support 2 million people • Limit own CO2 emissions by 2025 • 50-60% coverage of homes
Slide 15: Swisscom Switzerland
3 Swisscom Switzerland Urs Schaeppi, CEO Swisscom 15
Slide 16: Achievements 2020
3 Achievements 2020 Successful network upgrades and operational performance in Switzerland Networks • >80 Mbps in 82% HHs, 10Gbps in 32% • 96% 5G coverage, 5G+ >500 communities • 5G demo of 1.2Gbps on a train • 2G sunset since Jan 2021 • inOne with unbroken success • FMC penetration growing B2C • Le
Slide 17: Financials 2020
3 Financials 2020 Service revenue evolution in line with expectations, solid EBITDA supported by indirect cost savings Net revenue in CHF mn (YOY changes) EBITDA in CHF mn (YOY changes) OpFCF proxy in CHF mn YOY change EBITDA2) Q4 2020 8’275 Net revenue 3'527 -3.5% +1.2% +58 EBITDAaL4) 744 230 (+6)
Slide 18: The roadmap of the best network: #ready in 2021 and beyond
3 The roadmap of the best network: #ready in 2021 and beyond FTTH as the long-term Winner of all mobile sustainable infra network tests in CH Double FTTH footprint Swisscom with the largest 5G coverage to 60% by 2025 #ready Efficient fibre- Vision of one simple network expansion convergent reliable
Slide 19: Swisscom with the best network experience in Switzerland
3 Swisscom with the best network experience in Switzerland A multi-technology approach differentiating by best performance, best coverage and highest reliability The best fully converged network as a differentiator Best Performance Best Coverage Highest Reliability 2020 status 2021 target 2025 ambit
Slide 20: On track with UBB rollout plan making Switzerland gigabit ready
3 On track with UBB rollout plan making Switzerland gigabit ready Penetration and ARPU uplift after fibre upgrade Maximum bandwidth nationwide Hybrid fibre upgrade with positive effects Total UBB coverage • ARPU stabilisation (+3 CHF after local upgrade) 90% 95% >80Mbps 82% • Defend market leadershi
Slide 21: Swisscom as infrastructure player invests in own fibre
3 Swisscom as infrastructure player invests in own fibre Open to cooperation if it makes sense Efficient fibre-network expansion Opportunistic approach to cooperation FTTS replaced by FTTH • Swisscom invests in fibre on its own • Open to cooperation with favourable economics and assuming partners ar
Slide 22: Winner of all Swiss mobile tests in 2020 including 5G
3 Winner of all Swiss mobile tests in 2020 including 5G Undisputed mobile leadership and #ready for tomorrow with the best 5G network #1 mobile network as usual Largest 5G coverage in Switzerland • Swisscom mobile network prevailed in all • 96% of population covered by 5G, >500 communities benchmark
Slide 23: Our vision: one simple convergent network
3 Our vision: one simple convergent network powered by cloud, FTTH and 5G Equipping our network for the new decade Core and Convergence on all levels service platforms • Consolidation of network platforms IP-backbone and (ambition 2025: -70% vs. 2019) data centres • Rigorous thin-out of platforms an
Slide 24: B2C roadmap to be #ready in 2021 and beyond
3 B2C roadmap to be #ready in 2021 and beyond Value base management Market Maximise customer value by competitiveness continuously refreshing inOne Push 2nd brand and increasing convergence Wingo to defend penetration market shares Multi-touchpoint Compelling entertainment evolution experience Moder
Slide 25: Maximise customer value by refreshing inOne
3 Maximise customer value by refreshing inOne Further development of inOne value proposition to penetrate own customer base further inOne Home 2020 inOne RGUs in k • Keep competitive edge by continuous strengthening 4'998 5'092 4'617 4'785 4'874 4'927 of broadband position through bandwidth extensio
Slide 26: Driving convergence strategy to the next level
3 Driving convergence strategy to the next level Growing FMC penetration positively impacts life-time value of customer base Leverage successful convergence story further FM converged FM converged postpaid value subs broadband subs • Strengthen market resiliency migrating customers to convergent off
Slide 27: With blue the very best from the world of entertainment
3 With blue the very best from the world of entertainment New Swisscom brand and OTT solution to cement household value and grow market share (37%) further Launch of new entertainment platform in Q3 ... blue TV via Swisscom Box or Swisscom blue TV app • Easy-to-use • Over 300 channels with replay an
Slide 28: Successful Smart Life strategy with solid growth in 2020
3 Successful Smart Life strategy with solid growth in 2020 Position Swisscom as innovative industry leader and increase stickiness of broadband customers Highlights 2020 and outlook Top seller breakdown # connected devices with Swisscom Home App • Rollout to all Swisscom Shops • All devices manageab
Slide 29: VAS growth by focusing on Security & Services
3 VAS growth by focusing on Security & Services Continuously maximise top-line contributions by expanding security portfolio Doubled down on security story in 2020 • Swisscom with New Easy Travel Insurance solution. Flexible booking (CHF 1/day) possible • Introduction of Easy Cyber Insurance enablin
Slide 30: Attacker brand Wingo further strengthened
3 Attacker brand Wingo further strengthened to maximise customer base Push Wingo as 2nd brand to defend B2C market shares 2nd/3rd brands Substantial growth in 2020 postpaid value subs (+62k net adds in 2020) • Portfolio extension: expanded Wingo portfolio and introduced several new tariffs to target
Slide 31: Boost sales performance by optimised omni-channel approach
3 Boost sales performance by optimised omni-channel approach Digital sales and service channels increasingly important for Swisscom Channel Current role Future role Achievements 2020 • Optimisation of online Shops 1 • Main sales channel • Extra focus on inspiration, sales journey leading to • Import
Slide 32: B2B roadmap to be #ready in 2021 and beyond
3 B2B roadmap to be #ready in 2021 and beyond One B2B transformation Smart ICT for SMEs Develop B2B framework Establish convergent further to lever benefits offerings with strong along the full value chain focus on customer needs Value differentiation Omni-channel approach #ready Defend premium Telc
Slide 33: One B2B transformation on track
3 One B2B transformation on track Boost customer proximity and operational efficiency reached in 2020 – roadmap continues in 2021+ The market environment One B2B to excite, realise and grow Strong High price competition in Telco Integrated customer business business model proximity with high executi
Slide 34: Service revenue impacted by competition and price pressure
3 Service revenue impacted by competition and price pressure Hold leading position in a challenging market with strong value proposition Strong market position successfully defended … … but at cost of declining service revenue / ARPU • In wireless pressure due to competitive RFPs, 1'842 -6.6% 1'721
Slide 35: 5G and IoT offer new business opportunities in Telco segment
3 5G and IoT offer new business opportunities in Telco segment Swisscom as full service provider perfectly positioned to combine 5G with IoT, cloud and analytics 5G Campus for performance sensitive applications IoT system solutions Mobile Private Network Enable Connect Manage Utilise Run Plan Build
Slide 36: Swisscom participates in a growing IT solutions market
3 Swisscom participates in a growing IT solutions market in Switzerland Security, Cloud and Data Center remain fastest growing market segments Growing ICT market in Switzerland: 8.5bn 1 with CAGR ~4% Market trends 2020, in CHF mn • Increasing dynamics from international competition - 500 1'000 1'500
Slide 37: Offering E2E customer solutions as key to winning
3 Offering E2E customer solutions as key to winning in growing segments Swisscom as trusted and established IT partner with ability to benefit from market growth Hybrid cloud solutions with vertical E2E offerings Managed security services & SOC2 • Combining Swisscom private cloud with strategic • St
Slide 38: Lever Swisscom's strong market position in SME
3 Lever Swisscom's strong market position in SME Convergent ICT offering to support digital transformation and increase share of wallet Smart ICT solutions for SMEs … … serving all customers needs Service management • One-stop shop with a complete and perfectly tailored package • Integrated all-in-o
Slide 39: Best B2B service as baseline for value approach
3 Best B2B service as baseline for Swisscom's value approach Omnichannel approach to ensure highest customer satisfaction in the Swisscom ecosystem One B2B customer service Ensure consistent cross-segment customer experience Online interaction push High partner satisfaction Increase share of online
Slide 40: Operational excellence roadmap to be #ready
3 Operational excellence roadmap to be #ready in 2021 and beyond Cost control essential Boost operational Keep high discipline and efficiency further transformation spirit to Key to remain realise cost targets competitive, reduce complexity and compensate top-line pressure #ready Simplify network an
Slide 41: Operational excellence as top management priority
3 Operational excellence as top management priority Swisscom lowered indirect cost base in Switzerland by CHF >0.4bn over the last 4 years Solid track record on (indirect) cost program Swisscom Switzerland with lower FTE basis target achievement 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 in C
Slide 42: Way forward with three focus areas
3 Way forward with three focus areas … … to realise further annual net (indirect cost) savings of CHF ~100mn Network and IT • Simplify infrastructure setup • Drive efficiency in network and IT ahead • Push digital transformation • Future-proof IT framework Operational efficiency • Reduce complexity
Slide 43: Fastweb
4 Fastweb Alberto Calcagno, CEO Fastweb 43
Slide 44: Achievements 2020
4 Achievements 2020 Strong performance despite a challenging 2020, laying solid foundations to confirm future growth • Full year guidance achieved Distinct commercial and • Growth across all business segments operational performance • Further market share increase in Enterprise to approx. 34% 1) • N
Slide 45: Operational performance 2020
4 Operational performance 2020 Distinctive commercial approach and effective customer base management are paying off B2C operational KPIs B2B and Wholesale operational KPIs Broadband subs UBB subs Enterprise Revenues in k (YOY change) in k (YOY change) in EUR mn 2’011 +5% • NPS further increasing by
Slide 46: Financial results 2020
4 Financial results 2020 FY guidance achieved - Fastweb the only Italian operator steadily growing since years Net revenue in EUR mn (YOY) EBITDA in EUR mn (YOY) OpFCF proxy in EUR mn (YOY) YOY change Q4 2020 2’304 Net revenue (+3.9%) EBITDAaL 3) 203 +8 784 EBITDA 1) 264 (+12) Wholesale (+5%) CAPEX
Slide 47: Fastweb roadmap to be #ready in 2021 and beyond
4 Fastweb roadmap to be #ready in 2021 and beyond Provide the best Profit from new performance everywhere opportunities in B2B Leverage 5G FWA, FiberCop Tapping into new and 5G mobile opportunities to extend share of wallet of established CB #ready A leading UBB provider Boost Wholesale business in
Slide 48: Provide the best network performance everywhere
4 Provide the best network performance everywhere #ready to deploy the largest UBB footprint in Italy 5G Mobile Own coverage • Self-financed deployment 22% 2021 66% 2023 FTTH 90% 2026 5G FWA Own coverage Own coverage 7.5mn 2021 4mn 2021 9.5mn 2023 11mn 2023 • Stable CAPEX envelope 12mn 2024 of appro
Slide 49: 'NeXXt generation 2025' initiative
4 'NeXXt generation 2025' initiative to cement UBB leadership #ready to differentiate in B2C Fastweb with a new market approach #NCP • Addressing all customer needs in wireline, mobile and convergence • Leveraging the power of Fastweb #NCP infrastructure 49
Slide 50: Launch of several services in 2021
4 Launch of several services in 2021 to build new competitive advantages #ready to stimulate growth in B2C NeXXt Mobile NeXXt FTTH Ultra FWA Up to 1 Gbps 5G 2.5Gbps 5G • Launching 5G mobile service • The first provider to more-than- • Today only 20% of Italian families with in top cities and progres
Slide 51: Benefit from new opportunities in B2B
4 Benefit from new opportunities in B2B #ready to push on ICT/Security VAS and to open a new frontier of growth with 5G mobile service Uniquely positioned to leverage existing assets/capabilities in B2B to increase share of wallet Unparalleled wireline CB Strong legitimacy 500+ professionals (c. 34%
Slide 52: Boost wholesale business
4 Boost wholesale business #ready to accelerate UBB volume business and further grow in core services Already a leading provider in the wholesale B2B market • Own FTTH/S • National business infra • FWA 15% Backhauling Access EUR ~260mn platform • VULA market to >10k BTS • Active/Passive infra revenu
Slide 53: Wrap-up and guidance
4 Wrap-up and guidance #ready to grow likewise in 2021 On track to deploy the largest Expanding in ICT and launching proprietary UBB footprint in Italy 5G mobile to stimulate further and to provide the best growth in B2B performance everywhere Guidance 2021 • Revenues +5% YOY • EBITDAaL +5% YOY Laun
Slide 54: Group financials
5 Group financials Mario Rossi, CFO Swisscom 54
Slide 55: Group revenue and changes by segments
5 Group revenue and changes by segments Top-line evolution (with Swisscom Switzerland down and Fastweb up) in line with original guidance Q1 Q2 Q3 Q4 +15 +13 +32 +37 +0 +6 -…+12 -… -… +4 +32 -19 -6 -35 -32 -18 -40 -35 -27 -10 1…-3 -8 -27 -24 in CHF mn -50 -42-40 -17 -3 -4 -5 -97 -98 -123 Underlying
Slide 56: Service revenue development
5 Service revenue development Overall trend unchanged but with different segmental dynamics Service revenue development … in CHF mn (YOY) ... with different dynamics in CHF mn (YOY) YOY change 2019 YOY change 2020 Δ 2019/18 2020/19 Fixed voice lines -21 -16 -106 FM convergence -52 -29 -164 -58 Chang
Slide 57: OPEX Swisscom Switzerland
5 OPEX Swisscom Switzerland Operational excellence initiatives with expected impacts lowering indirect costs on a recurring basis Q1 Q2 Q3 Q4 +1 +13 +3 +9 -53 in CHF mn -3 -69 -67 -5 -12 -14 -5 -21 -19 -26 -90 -5 +23 -18 -7 -41 -58 -54 -40 -19 -21 -279 -110 (-5.6%) -27 -102 5’027 -150 direct costs -
Slide 58: Group EBITDA and changes by segments
5 Group EBITDA and changes by segments Satisfying underlying results thanks to strong cost management in Switzerland and growing Fastweb Q1 Q2 Q3 Q4 +40 +9 +28 +28 +34 +15 +9 +9 +10+10 -2 -5 -10 +11 in CHF mn -19 -13 -35 -20 -15 -7 -9 -8 -12 -24 Underlying +0 +24 +56 +38 +100 (+0.6%) -19 -32 -69 -50
Slide 59: EBITDA dynamics of Swisscom Switzerland
5 EBITDA dynamics of Swisscom Switzerland Covid-19 with some service revenue but nil margin impact. FY EBITDA slightly better than expected Service revenue evolution YOY changes in CHF mn EBITDA dynamics YOY changes in CHF mn Q4 2020 Q1 19 -6 -15 -32 -53 +33 +41 +15 Q2 19 -6 -14 -8 -54 -82 -23 -12 -
Slide 60: Net income
5 Net income Net income impacted by higher tax expenses due to deferred tax liability adjustments in prior year in CHF mn tax rate 15.1% EPS 29.54 FY 2020 4’382 -2'149 -286 1'947 -69 -45 -38 4 -271 1'528 2 1'530 EBITDA EBIT Net Net income Tax expenses Depreciation Depreciation income Swisscom intang
Slide 61: Capital expenditures
5 Capital expenditures Continuous investments in high quality network IT systems, All-IP, Wireless CP equipment, Q4 2020 FY 2020 19% and other: 22% Group CHF 597mn CHF 2'229mn (-0.6% YOY) CAPEX 1) (-1.3% YOY) 1'599 FY 20 in CHF mn Swisscom CHF 413mn CHF 1'599mn (-5.5% YOY) (+2.2% YOY) Switzerland 1)
Slide 62: Free cash flow
5 Free cash flow Reported FCF up by CHF +361mn, excluding spectrum CAPEX up by CHF +165mn in CHF mn 4’382 -300 4'082 -2'229 0 FY 2020 1'853 +140 +65 -69 -309 +26 1'706 Δ +24 -6 +18 +13 +196 +227 +57 +17 -6 +62 +4 +361 4’358 -294 4'064 -2'242 -196 +83 +48 -63 -371 FY 2019 +22 1'626 1'345 EBITDA Lease
Slide 63: Swisscom committed to sound financial profile
5 Swisscom committed to sound financial profile Well balanced and diversified maturity profile Net debt development (in CHF mn) Leverage 1.9x 1.5x IFRS16 adjusted Ratings S&P: A Stable Moody's: A2 Stable Net debt FCF Dividends M&A Other Net debt incl. lease effects incl. lease liabilities liabilitie
Slide 64: Guidance FY 2021
5 Guidance FY 2021 Net revenue of CHF ~11.1bn, EBITDA of CHF ~4.3bn and CAPEX of CHF ~2.3bn Expected Expected YOY change YOY change 2020 Swisscom w/o Fastweb 2021 in CHF mn reported Fastweb in EUR mn outlook 2 Splits into: CHF ~8.5bn for Swisscom w/o Fastweb + Revenue 11'100 <0 >0 ~11'100 EUR ~2.4bn
Slide 65: Wrap-up
6 Wrap-up Urs Schaeppi, CEO Swisscom 65
Slide 66: Thank you Mario and welcome Eugen
6 Thank you Mario and welcome Eugen New Swisscom CFO from March 1st, 2021 Mario Rossi (1960) Eugen Stermetz (1972) • 25 years of management experience • More than 22 years in different • Since 2012 in senior financial roles at Swisscom, management functions at Swisscom among others heading M&A and T
Slide 67: Final remarks
6 Final remarks #ready for 2021 and beyond Deliver Strong on leading position commitment to in Switzerland operational outperforming in excellence network, sales and service Enable a predictable shareholder remuneration Push Execute Fastweb in its next chapter of new growth growth ambitions 67
Slide 68: Q&A
7 Q&A 68
Slide 69: Appendix
Appendix 69
Slide 70: Strategy pillar 'best customer experience'
Swisscom strategy with proven pillar 'best customer experience' Cement premium brand positioning with inspiring products & services on leading infrastructure in Switzerland #Key beliefs Best infrastructure Best service Innovative products • Extend network leadership • Further expand NPS lead by • Re
Slide 71: Strategy pillar 'operational excellence'
Swisscom strategy with proven pillar 'operational excellence' Reduce complexity, drive digitisation and be #ready for a more agile business environment #Key beliefs Efficient operations Digital transformation Smart investments • Simplicity essential – for channels, • Online first • Lean portfolio ma
Slide 72: Strategy pillar 'new growth in Switzerland'
Swisscom strategy with proven pillar 'new growth in Switzerland' Maximise core business, grow in IT and adjacent businesses along a clear path #Key beliefs Focused growth in Core business IT business adjacent businesses • Grow with 2nd and 3rd brands to • Penetrate the SME market with • Fintech defe
Slide 73: Strategy pillar 'Fastweb'
Swisscom strategy with proven pillar 'Fastweb' Trusted infrastructure-OTT player with strong UBB and 5G footprint #Key beliefs Position Products ICT & wholesale • Market share growth • 'NeXXt generation 2025' • Benefit from scale in UBB • Increase own UBB footprint initiative in B2C business with 5G
Slide 74: Market shares
Market shares Stable position in Switzerland, strengthened in Italy Broadband TV Postpaid 29.8% 30.1% Newco Newco 15.2% 36.5% 25.9% 57.1% Other 52.6% 12.4% cable 27.7% Other cable Newco 2.0% 2.9% 5.2% (incl. other cable) 2.7% digital satellite ISP's and antenna Broadband Mobile 16% 14% 24% 27% 17% 4
Slide 75: Key financials
Key financials Reported and underlying revenue and EBITDA in CHF mn 2019 2020 Change Q/Q, FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Revenue, reported 2'860 2'803 2'793 2'997 11'453 2'737 2'706 2'758 2'899 11'100 -123 -97 -35 -98 -353 Currency effect 33 35 11 15 94 +33 +35 +11 +15 +94 Underlyin
Slide 76: Swisscom Switzerland
Swisscom Switzerland Wireless ARPU and IFRS15 adjustments Swisscom Switzerland Swisscom Switzerland 38 38 38 36 37 35 36 35 36 35 50 47 49 46 49 46 48 45 47 44 35 35 35 34 35 34 45 43 45 43 44 43 in CHF in CHF Q1 19 Q2 Q3 Q4 Q1 20 Q2 Q3 Q4 Q1 19 Q2 Q3 Q4 Q1 20 Q2 Q3 Q4 Blended (reported) Blended (IF
Slide 77: Residential Customers
Residential Customers Segment reporting as per 31.12.2020 Q4 2020 Q4/Q4 31.12.2020 YoY Net revenue in MCHF 1) 1'186 -4.4% 4'564 -3.6% Direct costs in MCHF -338 -3.4% -1'088 -7.0% Indirect costs in MCHF 2) -218 -3.1% -775 -2.6% Net revenue decreased driven by lower service Contribution margin 2 in MC
Slide 78: Residential Customers
Residential Customers Wireless performance Subscriptions (in k) ARPU (in CHF) Service Revenue (in CHF mn) YoY 5'000 160% 38 37 36 4'492 4'394 4'363 -129 40 130% 4'500 84% 140% 30 85% 85% 80% 4'000 700 YoY 77% 20 75% 74% 120% 30% 3'500 10 600 2'991 +61 513 485 2'930 2'962 100% 0 -20% 3'000 500 474 -3
Slide 79: Residential Customers
Residential Customers Wireline performance Subscriptions (in k) ARPU and ARPH (in CHF) Service Revenue (in CHF mn) 6'000 110% 37 37 37 120% 40 700 130% 5'000 YoY 91% 90% 95% 95% YoY 30 90% 96% 4'555 4'490 4'470 105% 80% 600 100% -85 20 -1 30% 508 500 507 4'000 10 500 1'491 -2 25 23 22 80% -3 1'486 1
Slide 80: Residential Customers
Residential Customers Performance of fixed and FM bundles ARPB/U (in CHF) and Subscriptions and Bundles (in k) FM penetration (in %) Service Revenue (in CHF mn) 6'300 40% 5'443 5'440 5'439 YoY350 50% YoY 46% 5'300 -4 35% 45% 45% 685 678 690 +5 300 46% 40% 30% 41% 41% 4'300 250 40% 35% 243 253 241 -1
Slide 81: Business Customers
Business Customers Segment reporting as per 31.12.2020 Q4 2020 Q4/Q4 31.12.2020 YoY Net revenue in MCHF 1) 786 -3.4% 3'100 -4.3% Net revenue down -4.3%, decrease in service revenue Direct costs in MCHF -220 -1.3% -818 -6.6% (-6.6%) due to price erosion and Indirect costs in MCHF 2) -236 -6.0% -938 -
Slide 82: Business Customers
Business Customers Subs and revenue performance Subscriptions (in k) Service Revenue (in CHF mn) Solutions Revenue (in CHF mn) YoY 550 YoY 2'493 2'511 2'511 -18 300 YoY 86% 87% 64 65 65 +1 444 87% -1980% 278 272 450 428 425 259 -6 287 289 288 +1 15 70% 15 16 301 298 297 -4 350 60% 226 223 223 50% 25
Slide 83: Wholesale
Wholesale Segment reporting as per 31.12.2020 Q4 2020 Q4/Q4 31.12.2020 YoY External revenue in MCHF 171 11.0% 661 2.8% Intersegment revenue in MCHF 78 20.0% 315 -3.1% Net revenue in MCHF 249 13.7% 976 0.8% Direct costs in MCHF -109 12.4% -433 -2.0% Revenue from external Indirect costs in MCHF 1) -7
Slide 84: Wholesale portfolio
Wholesale portfolio Access offerings Carrier Line Service Basic und Premium Solution Business ▪ Dedicated high-quality Point-to-Point Data Transmission, CLS 2M to 100G symmetric Monthly mass market prices Carrier Ethernet Service Basic und Premium ▪ Layer 2 Service for low-cost and flexible Ethernet
Slide 85: IT, Network and Infrastructure
IT, Network and Infrastructure Segment reporting as per 31.12.2020 Q4 2020 Q4/Q4 31.12.2020 YoY Net revenue in MCHF 21 5.0% 85 0.0% Direct costs in MCHF -3 0.0% -12 9.1% Workforce expenses in MCHF -227 -13.4% -824 -4.1% Maintenance in MCHF -51 0.0% -198 0.0% IT expenses in MCHF -46 -6.1% -153 -10.0%
Slide 86: Fastweb
Fastweb Segment reporting as per 31.12.2020 Q4 2020 Q4/Q4 31.12.2020 YoY Consumer revenue in MEUR 289 1.4% 1'133 2.6% Enterprise revenue in MEUR 246 4.7% 907 5.2% Consumer revenue up by Wholesale revenue in MEUR 1) 95 -16.7% 264 4.8% 2.6% YoY driven by the Net revenue in MEUR 1) 630 -0.6% 2'304 3.9%
Slide 87: Other
Other Segment reporting as per 31.12.2020 Q4 2020 Q4/Q4 31.12.2020 YoY External revenue in MCHF 116 -7.9% 445 -12.6% Net revenue in MCHF 1) 261 -5.8% 1'020 -5.5% OPEX in MCHF 2) -214 -7.8% -835 -6.2% External revenue down by EBITDA in MCHF 47 4.4% 185 -2.1% 12.6% YoY, as Cablex and EBITDA margin in
Slide 88: Pension plan
Pension plan Situation as per 31.12.2020 Valuation differences between Swiss pension law and IFRS Evolution IFRS deficit in 2020 difference of CHF 2.0bn due to different actuarial decrease of CHF 263mn (-25%) 112% … assumptions … valuation method profit equity / other cash comprehensive & loss flow
Slide 89: Pension plan
Pension plan Reported costs and outlook in CHF mn 2019 2020 Change 2021 reported reported 21/20 estimated Operating pension cost (EBITDA) 325 338 -5 333 Net interest (financial result) 8 2 0 2 Total pension cost (P&L) 333 340 -5 335 Company contributions (cash payments) 278 273 10 283 Operating pens
Slide 90: #ready for people
#ready for people … … to make our contribution to a changing society Status 2020 Goal 2025 1,434,713 2,000,000 • Already enables over 1.4 million people yearly to capitalise on the opportunities of the networked world • Measures contain: Training in media use, developing media skills, employees with
Slide 91: #ready for the environment
#ready for the environment … … to make our contribution to environmental protection Status 2020 Goal 2025 CO2 CO2 emissions emissions CO2 CO2 CO2 CO2 315 savings reduction savings reduction 300 580 500 895 800 • Together with our customers we save more CO2 than we emit • The goal 2025 is a net diffe
Slide 92: #ready for Switzerland
#ready for Switzerland … … to strengthen Switzerland's competitiveness and quality of life Status 2020 Goal 2025 75% 95% • Reliable highspeed internet for all Swiss households and businesses • Goal 2025: double FTTH coverage as a prerequisite for Switzerland's competitiveness 92
Slide 93: Investor contact
Investor contact Bild Louis Schmid Tamara Andenmatten Head Investor Relations Investor Relations Manager [email protected] [email protected] +41 58 221 62 79 +41 58 221 12 79 93
Slide 94: Cautionary statement
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