Swisscom Ag · SIX:SCMN
Swisscom — Deutsche Bank Investor Conference Luzern 2002
24 slides from Swisscom's conference presentation, April 2002
Slide 1: Company Presentation Swisscom
Company Presentation Swisscom “Solid as a Rock” April 2002
Slide 2: Highlights & Strategy
Highlights & Strategy
Slide 3: Swisscom 2001 – a cash machine
Swisscom 2001 – a cash machine Key financials Key achievements (in CHF mm) 2001 % change n Clear leadership position in core markets and key products Net revenue 14,174 0.8% n Successful internal reorganisation EBITDA 4,409 9.3% n Clarified strategic positioning EBITDA margin 31.1% 8.4% – Cleaned po
Slide 4: Balancing growth and value
Balancing growth and value A company committed to strong fundamentals and financial discipline 1 2 Disciplined investor in growth Innovative multi-service options with both offensive and a focused company b + c defensive character d Superior Underline Limited Build a number of performance domestic f
Slide 5: Continue to focus on superior cash flow generation in 2002
Continue to focus on superior cash flow generation in 2002 n Further strengthen leadership position in fixed-line business – Expand existing position – Expand customer base – Continued focus of Enterprise Solutions as a customer centric organisation – Potentially large growth from broadband/ADSL n G
Slide 6: Outlook 2002 – striving for CHF 4.4 bn EBITDA
Outlook 2002 – striving for CHF 4.4 bn EBITDA Revenues¹ EBITDA¹ Indicator Main challenges issues/remarks issues/remarks n Slowdown growth internet n Tariffs Fixnet 0 n LD/local effect 0 n Cost control traffic n Unbundling n USO n SAC n NISV Mobile + n GPRS + n % margin will come n Late arrival UMTS
Slide 7: Swisscom Fixnet
swisscom, sWiFsCP Ms
Slide 8: Fixnet 2001 – stable development
Fixnet 2001 – stable development Key financials - Fixnet Retail Key achievements (in CHF mm) 2001 % change n Clear leadership position in domestic Net revenue¹ 5,199 0.7% fixed-line business EBITDA 1,691 1.5% EBITDA margin 32.5% 0.6% n Contained market share erosion to about 72% voice market share w
Slide 9: Efficient mass market operations in 2002
Efficient mass market operations in 2002 Consolidate Fixnet’s business Secure the Fixnet business position and customer base for long-term success Improve the cost position of Cost leadership Fixnet’s core products and in the mass business services Seize the full broadband growth Growth in broadband
Slide 10: Fixnet stabilised market share at a high level ...
Fixnet stabilised market share at a high level ... 2001 overall market share: 72% Market share Fixnet’s market share¹ development 2000 2001 compares favourably to other Local European incumbents Growing competitive offers, Swisscom’s cautious pricing and 83% 82% BT FT Swisscom special offers such as
Slide 11: ... while prices declined less than expected
... while prices declined less than expected Key trends in tariffs Local and domestic long-distance 15.7 Local Local & Domestic long-distance Tariffs (Rp/min) 16 Domestic long- Local and domestic long-distance will converge in 12 10.3 distance 2002 into a unified tariff with revenue neutral 8.5 effe
Slide 12: Broadband – positioning to compete with cable
Broadband – positioning to compete with cable Swisscom ADSL broadband Fixnet is well positioned connections 180 n Broadband acceleration cements our ADSL connections (in 000) market position 160 140 n Market stimulation through wholesale 120 offering 100 n ADSL push continued in 2002, level of 80 30
Slide 13: Swisscom Mobile
swisscom,
Slide 14: Swisscom Mobile 2001 – outstanding performance
Swisscom Mobile 2001 – outstanding performance Key financials Key achievements (in CHF mm) 2001 % change n Revenue grows by 14% as Swisscom Subscribers (mm) 3.4 13.9% Mobile market share remains on a high 2/3 of the Swiss market Market share 2001 66.7% n Swisscom Mobile’s high quality ARPU (CHF/mont
Slide 15: Market shift from gross adds to retention
Market shift from gross adds to retention Gross adds Subscribed retention offers (in 000) (in 000) Post-paid Pre-paid Post-paid 1,415 350 1,092 396 1,019 407 422 1,019 685 597 50 1999 2000 2001 1999 2000 2001 15
Slide 16: Increased focus on customer satisfaction to support profitability
Increased focus on customer satisfaction to support profitability Trends Strategic initiatives for 2002/03 n Slower growth of subscriber base n Careful roll-out of UMTS network to fulfil expected due to high market licence requirements penetration of 70%¹ at year-end 2001 n Introduction of enhanced
Slide 17: Strong customer satisfaction level
Strong customer satisfaction level Customer satisfaction 5 Swiscom Mobile 6 Orange 7 Sunrise 8 8.2 Basic services 7.4 7.0 7.9 Products & services 7.4 7.1 7.0 Innovation 6.9 6.6 6.8 Information 6.6 6.4 6.2 Price 7.1 7.3 7.3 Willingness to stay 6.8 6.8 Ahead of competition in most respects, justifying
Slide 18: Financials 2001
Financials 2001
Slide 19: Group EBITDA development
Group EBITDA development Mobile debitel (in CHF mm) Fixnet Retail 393 20 EBITDA 2001 R&NW¹ WS&CS¹ 56 Other 4,409 25 ES EBITDA 2000 (12) (17) Corporate² 4,034 (90) 4,000 + 375 (+ 9.3%) 3,500 0 Fixnet Fixnet Mobile ES debitel Other Corporate ² Total EBITDA R&NW ¹ WS&CS ¹ 2000 1,666 96 1,483 264 167 15
Slide 20: Net income
Net income (in CHF mm) 2000 2001 EBIT excluding exceptional items 1,831 2,235 Exceptional items1 3,275 EBIT including exceptional items 1,831 5,510 Net financial result 161 (355) Income before income taxes, equity in net of affiliated 1,992 5,155 companies and minority interest Income tax (expense)
Slide 21: Net cash/(debt) development
Net cash/(debt) development Sale of (in CHF mm) real estate 2,484 Partial sale of (928) Swisscom Mobile Increase Net cash 4,282 end 2001 of debitel stake (1,398) 2,899 Dividends (892) Operating and par value Other2 Free CF1 reduction (excl. taxes) 2,920 (678) Tax payments (2,891) Net debt end 2000 S
Slide 22: Share buy-back 2002 – a logical consequence
Share buy-back 2002 – a logical consequence Rationale Impact on Swisscom n Consistent with excess cash position n Option trading (22nd February-7th March and review of strategic alternatives 2002) and exercising succeeded: Swisscom bought 9.99% (7.349 mm n Improve capital structure shares) back for
Slide 23: Total cash paid out to shareholders
Total cash paid out to shareholders Financial year 1999 2000 2001 Pay-out year 2000 2001 2002 Gross dividend (in CHF per share) 15.0 11.0 11.0 Par value reduction (in CHF per share) 8.0 8.0 Share buy-back - approx. put option value (in CHF per share) 8.0 Total cash paid out to shareholders (in CHF p
Slide 24: Thank you for your attention
Company Presentation Swisscom Thank you for your attention April 2002
Swisscom — Deutsche Bank Investor Conference Luzern 2002 on 6ix