Q1: Swisscom Smileys. Q analyst and investor presentation Conference call 7 May2014

Transcription

1 Q1: Swisscom Smileys Q analyst and investor presentation Conference call 7 May2014

2 Agenda Swisscom Smileys 2 Ch. Topic Speaker Welcome & Introduction 1 Smileys Highlights Q1 14 over Q1 13 Volume trends ARPU trends Revenue trends (=Volume x ARPU) Gross margin trends 2 Group results P&L Refinancing Outlook 3 Q&A All 4 Attachments Bart Morselt, IR Urs Schaeppi, CEO Mario Rossi, CFO

3 Agenda Swisscom Smileys 3 Ch. Topic Speaker Welcome & Introduction 1 Smileys Highlights Q1 14 over Q1 13 Volume trends ARPU trends Revenue trends (=Volume x ARPU) Gross margin trends 2 Group results P&L Refinancing Outlook 3 Q&A All 4 Attachments Bart Morselt, IR Urs Schaeppi, CEO Mario Rossi, CFO

4 Smiley 1 Highlights: Revenue Q1 4 Revenue growth of 3.2% (+CHF 87mm) driven 50/50 by organic and nonorganic growth. Total RGUs including Fastweb up 3.3% (SCS +2.7%, FWB +6.6%) 3.5% 3.0% 2.5% 2.0% 3.3% % growth Q over Q % 3.2% 6.0% 5.0% 4.0% 6.5% Key driver of growth in service revenues Switzerland remains the increasing number of products (RGUs) sold (+2.7% in Switzerland). Other revenues esp. up due to better performance at Swisscom IT Services 1.5% 1.0% 0.5% 0.0% 1.7% 1.5% 3.0% 2.0% 1.0% 0.0% 1.0% 2.0% RGUs SCS 2.7% Blended ARPU SCS 0.7% Service revenues SCS 1.6% Other revenues Group 2/3 of all revenues 1/3 of all revenues

5 Smiley 2 Highlights: Gross profitability Q1 5 Gross profitability (Revenues minus Costs of Goods Sold) up in all key segments % growth Q over Q % 10.0% Absolute contribution in Q1 (CHF mm) 10.0% 1'800 1'600 1' % 1' % 6.6% 1' % 2.0% 2.6% % FWB SCS All other

6 Smiley 3 Highlights: Launch Swisscom TV TV 2.0 is a major step to rejuvenate long term growth both for TV and for bundles that include internet access 2006 Launch TV 1.0 Microsoft platform (Mediaroom) Functionality incl. Pause TV, 30 hour replay and (hard disk) recording Content through Teleclub (Cinetrade) including sports rights and prime VoD store Available both as standalone product & in a bundle Growth and margin potential 2014 Launch TV 2.0 Android platform (proprietary) Superior functionality incl. 7 days replay on all channels and App store Cloud based (no hard disk), available everywhere with lower hardware cost Content through Teleclub (Cinetrade) including sports rights and prime VoD store Only in connection with internet broadband bundle (Vivo M, L, XL at 129, 139 and 169 CHF/month incl. unlimited calling) Very positive resonance in press ( state of art ) Phasing out TV 1.0 Migrating customer base to lower cost TV 2.0 platform

7 Highlights: Swiss market events after Q1 (April) 7 Both Sunrise and Cablecom have recently launched new mobile tariff plans Swisscom made non-binding offer for local.ch Major win in banking Sunrise launched new mobile tariff plans in April Core is the possibility for customers to subscribe sim-only, i.e. without handset The total cost of ownership (TCO) for Sunrise customers is largely unchanged (compared to their previous plans), therefore no imminent pressure to react from Swisscom s side Cablecom launched 3 mobile plans as of 28 April on the network of Orange, with no 4G access. These plans can be bought only in a bundle with their fixed line products, and are therefore limited to the current customer base. The headline prices of the mobile offer will appeal to the lower segment, however also here the TCO will be determined by the total bundle price There is no flat rate tariff from Cablecom Mobile, therefore not comparable to Swisscom s Infinity rates we can wait and see On 24 April, Swisscom made non-binding offer for local.ch the directories and yellow pages business it now co-owns with Publigroup. CHF 230 million was offered, in essence to get 100% access to the financials of the local business (CHF 200mm revenues, 60 mm EBITDA) Swisscom IT won a large contract to operate and maintain the technical solutions and do all transactional payment services for ZKB (largest cantonal bank) from 2016 onwards

8 Agenda Swisscom Smileys 8 Ch. Topic Speaker Welcome & Introduction 1 Smileys Highlights Q1 14 over Q1 13 Volume trends ARPU trends Revenue trends (=Volume x ARPU) Gross margin trends 2 Group results P&L Refinancing Outlook 3 Q&A All 4 Attachments Bart Morselt, IR Urs Schaeppi, CEO Mario Rossi, CFO

9 Smiley 4 Volume: Revenue Generating Units (RGU) 9 All quarters recorded growth compared to the same prior year s quarter. Swisscom Switzerland now nearly has 12.2 million RGUs (up from 11.5mm in Q1 2012), growing by just under 3% annualised Q somewhat muted as 10k Pager SIM cards (with hardly any revenues) were cancelled by a single account. Without this, Net Adds would have been 329k ΔRGU YoY (000), SCS Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q1 14

10 Smiley 5 Volume: Market strength in mobile postpaid 10 Share of net adds postpaid mobile moving in right direction 70% Net adds share postpaid mobile 65% 62.7% 60% 55% 50% Q4 Q1 Q2 Q3 Q

11 Smiley 6 Volume: Market strength in TV and broadband 11 Net adds marketshare digital TV Marketshare broadband retail TV net adds share again over 100% 160% 54.6% Broadband retail market share back to growth 150% 140% 54.4% 130% 54.2% 120% 54.0% 110% 100% 53.8% 90% Q1 Q2 Q3 Q4 53.6% Q4 Q1 Q2 Q3 Q

12 Smiley 7 ARPU 12 Blended ARPU *) clearly recovering. Absolute value now stands at just under 45 CHF/month per RGU Δ ARPU YoY SCS (CHF/month) 0.5 Blended ARPU 1P+Bundle SCS YoY Mobile ARPU 1P YoY 0.6 Key driver of the improvement is the better mobile 1P performance (largely attributable to the Infinity tariff plan) *) blended ARPU is the volume weighted average for each and every of the 12.2 million 1P products, 2P, 3P and 4P bundles Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q1 14

13 Smiley 8 ARPU: Infinity migration effect 13 Extra ARPU of migrators to Infinity tariff plans continues to tick up, in Q1 stood at CHF 9/month Δ ARPU Non Infinity to Infinity 9 2'000 1'800 1'600 1'400 1'200 Subs & penetration 55% 1'777 60% 50% 40% With nearly 1.8mm customers on infinity, the penetration on the postpaid residential and SME base stands at 55% ' Q2 12 Q3 Q4 Q1 13 Q2 Q3 Q4 Q % 20% 10% 0% 8 10 Q2 12 Q3 Q4 Q1 13 Q2 Q3 Q4 Q1 14 Infinity customers (LHS in 000) Penetration (% of postpaid RES+SME)

14 Smiley 9 (Service) revenues (RGUxARPU) 14 Core revenues SCS up due to continued bundles growth and less decline in 1P shrinkage. Δ Revenues YoY (CHF mm) 40 1P+Bundle revenues SCS YoY P revenues SCS YoY o/w 1P mobile revenues SCS YoY Q1 YoY: Bundles +90 1P*) Net: Lower 1P revenues decline fully driven by better 1P mobile performance *) in 1P CHF 9mm positive contribution from Cinetrade acquisition. Without this, 1P revenues have come down by CHF 68mm Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q1 14

15 Smiley 10 Gross profitability (CM1) trending up 15 (CHF mm) In a fixed cost business, higher (service) revenues contribute to higher Contribution Margin SCS CM1 YoY Contribution Margin equals Revenues minus direct cost (Cost of Goods Sold) Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q1 14

16 Smiley 11 Fastweb with reassuring results 16 Market growth Broadband Italy improving to 112,000 (compared to 80,000 in Q1 last year). Share of Fastweb at 38% in Q1 (42,000 net adds) well above overall market share (000) Net adds 38% 42 share (%) % 30% 20% 10% CHF mm Gross margin (Revenues COGS) 22 0% Gross margin (Revenues minus COGS) improving strongly, partially due to lower cost for LLU Q Q Q1 share (RHS, %) 10% 20% Q1 12 Q2 Q3 Q4 Q1 13 Q2 Q3 Q4 Q1 14

17 Agenda Swisscom Smileys 17 Ch. Topic Speaker Welcome & Introduction 1 Smileys Highlights Q1 14 over Q1 13 Volume trends ARPU trends Revenue trends (=Volume x ARPU) Gross margin trends 2 Group results P&L Refinancing Outlook 3 Q&A All 4 Attachments Bart Morselt, IR Urs Schaeppi, CEO Mario Rossi, CFO

18 Group results Revenue breakdown in CHF mm 18 Without FX, hubbing and M&A effects, revenue went up CHF 45mm YOY (1.7%). Underlying top-line of Fastweb went up by CHF 6mm YOY, Consumer segment and Wholesale with increase, Enterprise stable. 2, w/o exceptionals: +45 (+1.7%) Mobile Handsets +4 Other Traffic, lower roaming rates, Decrease Voice Access Swisscom Switzerland w/o exceptionals Consumer and Wholesale increase - Enterprise stable 2,821 (3.2%) Reported Revenues (a) Exceptionals Q Bundles 1P Wireless & Wireline Hardware Other Fastweb w/o Hubbing Other segments and IC elimination (b) Exceptionals Q Reported Revenues (a) Hubbing Fastweb (CHF -17mm) (b) Acquisitions (CHF +52mm), Hubbing Fastweb (CHF +9mm), change exchange rate (CHF -2mm, weakening of Euro against Swiss Franc of 0.5%)

19 Group results Revenue breakdown by segments 19 Underlying Revenue of Swisscom Switzerland up CHF 23mm driven by increase in service revenue. in CHF mm +21 Swisscom Switzerland Fastweb underlying revenue up CHF 6mm. 2,717 Service revenue w/o Acquisitions Hardware +7 Other 2,762 (+1.7%) Revenue (a) w/o exceptionals Residential Small & Medium Enterprises Corporate Wholesale & intersegment elimination Hardware & other Fastweb w/o Hubbing Other segments and IC elimination Revenue (b) w/o exceptionals (a) Without Hubbing Fastweb (CHF -17mm) (b) Without Acquisitions (CHF -52mm), Hubbing Fastweb (CHF -9mm), change exchange rate (CHF +2mm, weakening of Euro against Swiss Franc of 0.5%)

20 Group results EBITDA breakdown 20 in CHF mm EBITDA w/o exceptionals up CHF 27mm YOY. Contribution Margin +21 EBITDA of Swisscom Switzerland w/o exceptionals up CHF 19mm. 1, Swisscom Switzerland w/o exceptionals (+2.6%) (a) EBITDA w/o exceptionals Service Revenue Direct Cost Indirect Cost Fastweb Other segments Headquarters Intercompany elimination (b) EBITDA w/o exceptionals (a) Without release of provisions (CHF +8mm) (b) Without lower Pension cost (+2mm), M&A (+9mm)

21 Group results EBITDA breakdown by segments 21 EBITDA of Swisscom Switzerland w/o exceptionals up CHF 19mm. in CHF mm EBITDA of Fastweb up CHF 13mm ,023 1,050 Swisscom Switzerland w/o exceptionals (+2.6%) +19 EBITDA (a) w/o exceptionals Residential Small & Medium Enterprises Corporate NIT & WS Fastweb Other Segments EBITDA (b) w/o exceptionals (a) Without release of provisions (CHF +8mm) (b) Without lower Pension cost (+2mm), M&A (+9mm)

22 Group results Net Result 22 in CHF mm In Q1 2014, net income of the group amounts to CHF 373mm. Earnings per share equals to CHF tax rate 20.6% EPS , Prior Year Reported EBITDA Depreciation EBIT Net interest Other financial result Affiliated companies Tax expenses Net income Minorities Net income SC Shareholders 1,755 1,

23 Group results CAPEX 23 Ongoing FTTx rollout leads to higher CAPEX at Swisscom Switzerland. CAPEX increase at Fastweb is mainly due to the expansion of the fibreoptic network. in CHF mm Increase YoY (CHF +45mm) driven by expansion of fibre networks Q Q (in CHF mm) = = 474 8,427Swisscom Switzerland Fastweb Other Swisscom Switzerland with increasing capex in fibre network 15% 18% 16% 21% 19% 24% 29% 27% 26% 11% 11% 11% 24% 25% 23% Q Wireless network Fixed network: Fibre (FTTx) Fixed network & Copper access, backbone & transport infrastructure: Customer driven: Customer premises equipment & corporate customers IT systems, All-IP & other

24 Group results OpFCF 24 Positive contribution in change of NWC and higher EBITDA led to higher OpFCF of CHF +89 mm. Lower increase of receivables than in previous year impacting the change in OpFCF by CHF +65 million. in CHF mm , , Increase in NWC of 192 CHF mm (more tied up capital) Increase in NWC of 315 CHF mm (more tied up capital) EBITDA CAPEX Receivables Payables Roaming Rec./Payab. Inventory Other NWC Others OpFCF

25 Successful EURO bond issuance in April 2014 Debt maturity profile 25 Bond Details: Amount: EUR 500 Mio. Tenor: 7.5 Y (8 April September 2021) Coupon: 1.875% Spread: EUR M/S +58 bps Rating: A/A2 Issuer: Swisscom AG issuing via Lunar Funding V PLC Use of proceeds: Partial refinancing of CHF Mio. Swiss domestic bond matured 8 April 2014 Maturity profile after Bond settlement:

26 Outlook 2014 confirmed 26 CHF bln E*) Splits into: Revenues ~11.5 EBITDA ~4.35 CAPEX ~ CHF 9.45 bln for Swisscom w/o Fastweb + ~ 1.65 bln for Fastweb > CHF 3.7 bln for Swisscom w/o Fastweb + > 0.5 bln for Fastweb ~ CHF 1.75 bln for Swisscom w/o Fastweb + ~ 0.55 bln for Fastweb Revenues 2014 Continuation of moderate service revenue growth Further stagnation in corporate market (price pressure) Acquisitions of 2013 will bring additional revenue of CHF 80 mm in 2014 EBITDA 2014 Without any potential restructuring and integration cost, modest growth of EBITDA expected, both for Fastweb and Swisscom *) For consolidation purposes, CHF 1.23/ has been used

27 Agenda Swisscom Smileys 27 Ch. Topic Speaker Welcome & Introduction 1 Smileys Highlights Q1 14 over Q1 13 Volume trends ARPU trends Revenue trends (=Volume x ARPU) Gross margin trends 2 Group results P&L Refinancing Outlook 3 Q&A All 4 Attachments Bart Morselt, IR Urs Schaeppi, CEO Mario Rossi, CFO

28 4. Attachments

29 Bundles replacing 1P 29 Business model for local telco can no longer rely on usage based charging CHF mm per quarter, Swisscom Switzerland traffic & access revenues Relative share Relative share 48% 1'600 1'650 1'682 1'648 1'614 1'653 1'682 1'642 1'627 1'648 1'664 1'635 1'596 1' '670 1'656 1' % 1P Traffic & VAS 48% % 1P Access 4% Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 27% Bundles Fixed monthly fees now represent 77% of revenues compared to 52% 4 years ago.

30 RGU s 30 Swisscom Switzerland YTD, (Change to in brackets) Access Lines/Subs/Products (000) TV Fixed Voice & Access Broadband Mobile Number of products in Bundle Sum Δ 1P Single Play 271 (-20) 2,007 (-265) 773 (-136) 5,985 (+48) 1 9,036 (-373) (-4.0%) 2Play 287 (+30) (+60) (+11.7%) Bundles 3Play 555 (+127) and 23 additional Mobile Subs 3 1,688 (+388) (+30%) 4Play 218 (+61) (+244) (+39%) Revenue Generating Units 1,052 (+192) 2,856 (-114) 1,833 (+82) 6,429 (+159) 12,170 (+319) (+3%) (+22%) (-3.8%) (+4.7%) (+2.5%) Number of revenue generating units up by +2.7% YOY.

31 ARPU 31 YTD, (Change to in brackets) TV 1) Fixed Voice 2) & Access Broadband Mobile 3) Number of products in Bundle Weighted average per underlying product 1,2) 1P Single Play 16 (+0) 52 (-0) 36 (-1) 38 (-1) 1 40 (-1) 2Play 111 (-2) 2 55 (-1) Bundles 3Play 135 (+1) 3 45 (+0) 4Play 212 (-4) 4 53 (-1) Total weighted average 45 (-0) 45 (-0) Move to bundles implies up-scaling to higher ARPU s. 1) ARPU Base Fee 2) ARPU excl. Business Networks 3) ARPU excl. Mobile Termination

32 Revenues (RGU x ARPU) 32 Net revenues (CHF mm) YTD, (Change to prior year in brackets) TV Fixed Voice & Access Broadband Mobile Sum Δ 1P Single Play 23 (+4) 1) 2) 314 (-45) 178 (-18) 673 (+0) 1,188 (-59) (-4.7%) 2Play 94 (+8) 94 Bundles 3Play 214 (+46) 214 (+90) (+25.8%) 4Play 131 (+36) 131 Net Revenue Bundle + 1P 1,627 (+31) (+1.9%) 1) includes impact from acquisition Cinetrade. 2) including revenues for business networks/internet which are not included in retail broadband ARPU

33 TV market Switzerland 33 Market share: 43 % 15 % 26 % 16 % Market volumes (000) digital TV Market digital + analogue Analogue TV Market Market Digital TV * share: % % Sunrise * 38 1'031 1' % 1' % % % % Q1 Satellite/Terrestrial * CATV / Net Integrators * UPC Cablecom * 1) 1) UPC Cablecom Premium TV option * Swisscom TV light Swisscom TV paid Abos 1) Migration to digital largely driven by analogue customers who have been transferred technically, but have not subscribed to a digital product yet: these are potential customers for Swisscom * Estimates for Q Cable customers who are being migrated to digital continue to be potential customers for Swisscom s IPTV solution

34 Handsets & SACs 34 85% Smartphone share 87% 65% sold handsets postpaid active user postpaid 88% 70% 58% Handsets (in 000) SAC/SRC in CHF mm (mobile and wireline products together) Corporate Segments Residential Segment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Volume of sold handsets in Q lower than in 2013, but same level as in 2012.

35 Group results Revenues, exceptionals 35 Without M&A, hubbing and FX effects, revenue went up CHF 45 mm YOY (+1.7%). in CHF mm +23 w/o exceptionals Underlying top-line of Fastweb (w/o hubbing and FX) went up by CHF 6 mm YOY. Consumer and wholesale segment with increase, Enterprise stable. 2,734 Reported Revenue (a) Exceptionals Q ,717 Revenue w/o expeptionals Swisscom Switzerland Fastweb Other segments and IC elimination -21 2,762 (+1.7%) Revenue w/o exeptionals (b) Exceptionals Q ,821 (+3.2%) Reported Revenue (a) Hubbing Fastweb (CHF -17mm) (b) Acquisitions (CHF +52mm), Hubbing Fastweb (CHF +9mm), change exchange rate (CHF -2mm), weakening of Euro against Swiss Franc of 0.5%)

36 Group results EBITDA, exceptionals 36 EBITDA w/o exceptionals up CHF 27mm YOY. in CHF mm w/o exceptionals ,031 1,023 4,398 1,050 (+2.6%) 1,061 (+2.9%) Reported EBITDA (a) Exceptionals Q EBITDA w/o exceptionals Operational Changes EBITDA w/o exceptionals (b) Exceptionals Q Reported EBITDA (a) Release of Accruals (CHF -8mm) (b) Acquisitions (CHF +9mm), Reduced Pension Cost (+2mm)

37 Segment Residential 37 Top line impacted by one off effect (acquisition). Adjusted, top line is +1.5% above prior year driven by higher service revenue. CM 2 increase of 2.8%, driven by higher margin (due to service revenue) and one-off (acquisition). Mobile postpaid subs increase alongside with the increase in infinity subs. # of TV subs up by 22.2% YOY YoY Net revenue in MCHF 1) 1' % Direct costs in MCHF % Indirect costs in MCHF 2) % Contribution margin 2 in MCHF % Contribution margin 2 in % 57.3% CAPEX in MCHF % FTE's 4' % Voice lines in '000 3) 2' % BB lines in '000 3) 1' % Wireless customers prepaid in '000 2' % Wireless customers postpaid in '000 3) 2' % Blended wireless ARPU MO in CHF % TV subs in '000 3) 1' % 1) incl. intersegment revenues 2) incl. capitalised costs and other income 3) sum of single play and bundles

38 Segment Small & Medium Enterprises 38 The decrease of single play revenues (especially wireline telephony) was overcompensated by higher bundle revenues YoY Net revenue in MCHF 1) % Direct costs in MCHF % Indirect costs in MCHF 2) % Contribution margin 2 in MCHF % Contribution margin 2 in % 74.9% CAPEX in MCHF % Growth in BB lines excellent. Wireless ARPU decrease in the past quarters could be stopped in Q FTE's % Voice lines in '000 3) % BB lines in '000 3) % Wireless customers in '000 3) % Blended wireless ARPU MO in CHF % 1) incl. intersegment revenues 2) incl. capitalised costs and other income 3) sum of single play and bundles

39 Segment Corporate YoY Ongoing price erosion leads to lower top line of 0.7% YOY). # of wireless subs up by 5.4% YOY Net revenue in MCHF 1) % Direct costs in MCHF % Indirect costs in MCHF 2) % Contribution margin 2 in MCHF % Contribution margin 2 in % 49.8% CAPEX in MCHF % FTE's 2' % Voice lines in ' % BB lines in ' % Wireless customers in '000 1' % Blended wireless ARPU MO in CHF % 1) incl. intersegment revenues 2) incl. capitalised costs and other income

40 Segment Wholesale 40 Revenue from external customers down 2.7% driven by lower termination and inbound roaming rates YoY Revenue from external customers in MCHF % Intersegment revenue in MCHF % Net revenue in MCHF % Direct costs in MCHF % Indirect costs in MCHF 1) % Contribution margin 2 in MCHF % Contribution margin 2 in % 41.5% CAPEX in MCHF - nm FTE's % Full access lines in ' % BB (wholesale) lines in ' % 1) incl. capitalised costs and other income

41 Segment Networks and support functions 41 Higher personnel expenses (CHF 4mm YOY) driven by release of a restructuring provision a year ago. Overall, CM2 declined by CHF 0.6% YOY. CAPEX of CHF 241mm up 7.1% YOY, due to further rollout of broadband networks YoY Personnel expenses in MCHF % Rent in MCHF % Maintenance in MCHF % IT expenses in MCHF % Other OPEX in MCHF % Indirect costs in MCHF % Capitalised costs and other income in MCHF % Contribution margin 2 in MCHF % Depreciation, amortisation and impairment in MCHF % Segment result in MCHF % CAPEX in MCHF % FTE's 4' %

42 Segment Fastweb 42 W/o low margin wholesale hubbing net revenues increased 1.3% YOY. That revenue increase was driven be Consumer and Wholesale. EBITDA of EUR 108 million up 11.3% YOY CAPEX increase due to FTTS roll out. # of BB customers up by 6.6% YOY YoY Consumer revenue in MEUR % Enterprise revenue in MEUR % Wholesale revenue in MEUR 1) % Net revenue in MEUR 1) % of which net revenue excl. hubbing in MEUR % OPEX in MEUR 2) % EBITDA in MEUR % EBITDA margin in % 27.3% CAPEX in MEUR % OpFCF Proxy in MEUR % FTE's 2' % BB customers in '000 1' % In consolidated Swisscom accounts EBITDA in MCHF % CAPEX in MCHF % 1) incl. revenues to Swisscom companies 2) incl. capitalised costs and other income

43 Segment Other 43 Swisscom IT Services external revenue up due to one off (acquisition). OPEX up by 12.7% mainly driven by one off (acquisition) at Swisscom IT Services YoY Swisscom IT Services in MCHF % Group Related Business in MCHF % Hospitality Services in MCHF % Other in MCHF % External revenue in MCHF % Net revenue in MCHF 1) % OPEX in MCHF 2) % EBITDA in MCHF % EBITDA down by 6.8% YOY. EBITDA margin in % 15.1% CAPEX in MCHF % FTE's 4' % 1) incl. intersegment revenues 2) incl. capitalised costs and other income

44 Cautionary statement regarding forward-looking statements 44 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 and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Swisscom s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors detailed in Swisscom s and Fastweb s past and future filings and reports, including those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases, reports and other information posted on Swisscom Group Companies websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please contact: phone: or investor.relations@swisscom.com