Good morning, ladies and gentlemen. Welcome to the first quarter results 2021, presented by Urs Schaeppi, Eugen Stermetz, and Louis Schmid. Louis, the floor is yours. Good morning, ladies and gentlemen. Welcome to Swisscom's Q1 presentation. My name is Louis Schmid, head of investor relations, and with me are our CEO, Urs Schaeppi, and Eugen Stermetz, our chief financial officer. The first part of today's analyst and investor presentation, hosted by our CEO, consists of two chapters. A quick overview with some highlights on our Q1 achievements, operational performance, and financials, and an update on our network activities, B2C and B2B operations, and financial results in Switzerland on Fastweb strategic initiatives and Q1 results operationally and financially. In the second part of the presentation, Eugen runs you through chapter three, the Q1 financials implications from the new fiber partnership and the new guidance for the full year 2021. With that, I would like to hand over to Urs to start his part. Urs? Good morning, ladies and gentlemen. I welcome you to this Q1 results presentation. I would like to start directly with our slide four, the key achievements in 2021. Financially, we have a strong, good first quarter. Operationally, a solid one. Once more, we were able to win mobile tests, all the mobile tests in Q1, on CHIP or Ookla. This shows our network leadership. We have also a very solid and good performance in our B2B segment. Our solution business develops well, mainly cloud and security products. Also in the retail market, a good momentum on our brand experience, and to the subscriber, a bit weaker with some exceptions. I will come later to it. We announced today this fiber partnership with Salt, which I will give you later some more details. On Fastweb, strong performance in Q1. Also on the market performance side, where all segments performed well, mainly also in the B2B market. Brand experience of Fastweb is increasing. We have a strong brand in Italy. If you go on slide five, you see our market performance. Switzerland, some extraordinary effects, and in Italy, we have revenue-generating growth. In Switzerland, you see that broadband is impacted by a phase-out of a product. It's the Casa product where we made a phase-out, and therefore we lose or lost 5,000 connections. Then also we have some spill-over from the aggressive promotions of Q4. The Valentine's Day, it's always a bit the case in Q1 that the performance is weaker. There is certainly also a third effect, which leads to a bit weaker net add performance in Q1 because we had the shutdown and the shops are important for the market performance of Swisscom. Overall, as expected, the broadband business and also the fixed voice business. On mobile, postpaid mobile, you see that underlying net adds are plus 17. There we have an extraordinary effect of the phase-out of 2G, which we have done in Q1, at the end of Q1. This has a slight negative impact on the net adds. You see a slightly increasing net adds on wholesale. Fastweb with a good momentum on mobile, 105,000 new subscription mobile and a growth of 18,000 broadband. Overall, a quarter like expected with some extraordinary effects as I explained them. If you go on slide six, some key remarks to our financial performance. We were able to have a revenue growth of 2.5%, mainly driven by a bit better service revenue in Switzerland, but also solution business in Switzerland, the IT business, and some more smartphone sales. On the EBITDA on the right side of this chart, you see that the underlying performance of the EBITDA is + CHF 9 million, so stable. That's a good performance if you look to the price erosion, which we have in Switzerland. Even then, we were able to compensate this service revenue decline through efficiency measures. We had a +7% on Swisscom Switzerland and + CHF 10 million on Fastweb EBITDA growth. Overall, a solid EBITDA and also a solid operating free cash flow. You see it stands at CHF 509 million in the first quarter. On slide eight, very short, our priorities are as explained during the year result presentation of 2020. Investing in our infrastructure remains important to be leading on network quality, defending our market position in Switzerland is and stay important. This commitment to operational excellence, where we have announced this target of more than 100 million savings in this year. Pushing Fastweb, and increasing the free cash flow in Italy. On slide nine, some remarks to our network initiatives. On mobile, you see that we are able to continue to roll out the network in a challenging environment. We have today a coverage on 5G wide, this 5G base version, of 96%. 96 population coverage end of Q1. 26% of our sites are 5G+ enabled. That means this 3.5 gigahertz frequency site. You see that we were also able to increase the footprint and we get some better, I would say, some better environment for rolling out networks. Still very challenging. Still a lot of sites are blocked, but a better, more positive outlook on 5G rollout. On the fiber rollout, on the right side of the chart, you see the waves, how we ramp up our fiber network. The first phase was a point-to-point approach to get 30% coverage in Switzerland approximately. The second wave was fiber to the street to come fast in all the areas of Switzerland to get a bandwidth, a base bandwidth in the region of 2 to 500 megabits. Now we are in the third phase where we are rolling out our network to 60% fiber to the home coverage in the fiber architecture point-to-multipoint. Some words to the COMCO investigation. The investigation is still continuing, so we don't have really visibility how or when the end state will be. Swisscom appealed against the precautionary measures, and we are also in a dialogue with the authority to convince them that we have a very effective competition in Switzerland. It's too early to judge the impacts. Important to say is that on the rollout, we continue to do our rollout, so we haven't stopped the rollout on this fiber to the home initiative. If you go on slide 10, some words to our fiber approach. We are an infrastructure player. That means we want to own network. We are not a wholesale buyer, but we are open to cooperate. In this slide is also the partnership with Salt, which we announced this morning. We have always an open network approach. That means we give access to our competition, on a non-discriminatory basis to our fiber networks. Important to say is that we are also open for other cooperation if they make sense for us. This approach was successful in the past where we have done some regional cooperation with utilities, mainly with utilities, and now the one with Salt. How is the partnership with Salt structured? You can see on page 11. It's a long-term agreement with two investment components, the one on the feeder and the second one on the drop. On the feeder, Salt will co-invest in the feeder, and they will have a view, this right to use the fibers. That's the main idea on a dark fiber basis. It's a Layer 1 product. On the drop, they are also investing in the drop where we have a four-fiber model and they own their own fiber tree. It's a Layer 1 product on a point-to-multipoint architecture. Important to say is that Swisscom built and owns the five networks, that our rollout ambition is unchanged, so the 60% in 2025. On the guidance, there will be a slight adjustment. Eugen will explain it deeper in the next minutes. What we can say is that overall, this deal has a positive effect on EBITDA in the next year and on the free cash flow. It's a financial leasing case, charged as a financial leasing case under IFRS 16, so a quite complex recognition of all the revenues and the figures. Eugen will explain it. On page 12, some remarks to our market dynamic in Switzerland. Unchanged situation, I would say, as in Q4. Important for us is differentiation, as we have done it in the past, and defend our market shares. For this, we are well-positioned. We have a multi-brand strategy with an attack and defense approach, and our second and third brands are the products for the more price-sensitive customer segments. Operationally, the figures are as expected, and as I already explained, with some extraordinary effects, phase-out of products in broadband and phase-out of 2G. The outlook on the market looks good. The momentum in the second quarter is certainly better than in the first quarter. On B2C, the operational results on page 13. Some remarks to the KPIs, first starting with wireline KPIs. You see that the blended ARPU on broadband is stable. We have a stable ARPU. I think that's a good performance at CHF 37. The bundled ARPU on wireline is even increased by CHF 2 at the CHF 86. The churn is slightly higher because of this special effects, which I explained before. On wireless, the postpaid ARPU is at CHF 54. This is minus CHF 3, where CHF 2 is coming out of the revenue-generating mix. Eugen will explain it later. CHF 1 is coming from fixed-mobile converged rebates and roaming effects because we had also this lockdown in Q1 in Switzerland. Overall, I think solid KPIs. On page 14, on the B2B market, you see a good performance, a solid performance in the B2B market. The service revenue trends are a bit better, so less erosion on service revenue in Q1. The customer base is solid, stable, so a stable customer base on a revenue-generating unit level. ARPU pressure is a bit lower, and there is a bit more traffic also because of the home office situation in Switzerland. The solution revenues, that means the IT business revenues, you see that we have a good development, slightly increasing solution revenues with different dynamics, good momentum on cloud security and also SAP, the SAP business unit. A bit pressure on Workplace and UCC, but that's more a seasonal effect. On page 15, our cost achievements. We are on track for this CHF 100 million-plus savings. You see in the first quarter, we had a net savings of minus CHF 27 million. We are on track to achieve our cost target 2021. On the financial performance of Swisscom Switzerland on page 16. We have a solid EBITDA. We have a revenue, which is slightly increased by CHF 15 million, but with different effects. The service revenue, which went down by CHF 51 million. The main effect here is the erosion in the mobile business. The wireline business is quite stable. The price erosion, as explained, the revenue-generating mix and some price effects in B2B and roaming, this leads to this minus CHF 51 million service revenue. On the other side, you see the areas where we were able to grow. EBITDA was up by CHF 7 million, and operating free cash flow is approximately stable at CHF 4,807 million. On page 17, some remarks to Fastweb and to the network strategy and the commercial update. On fiber, we have a good momentum and Fastweb showed once more that they are leading. We are the only player which offers more than 1 GB per second speed in the consumer market. Also on the 5G fixed wireless access project, we are in a pioneering role. We are the first provider which will bring fixed wireless access or UBB services to rural areas. There we have very good performance figures of our fixed wireless access product. We are now progressively rolling out this fixed wireless access network. On 5G, we are on track on the rollout. On page 18, some remarks to the consumer performance of Fastweb. In the fixed business, a solid momentum. Important to mention is the penetration of our UBB subscriber base. That's important because if we have a high percentage which are on UBB or ultra broadband business, we have benefits. They are coming out of a higher ARPU and a lower churn. You see that we were able to increase our penetration on UBB by 18%. On mobile, we have a good momentum, good subscriber growth, and also a lower churn. Good momentum in mobile. On the ARPU side, important to mention that the performance of our fixed mobile converged offers. You see that we are able to have an uplift on the ARPU by 27%, and the churn is decreasing on a fixed mobile converged offer by 47%. Net Promoter Score, and for this we are proud. We have a leading Net Promoter Score in the Italian market. On page 19, some figures to the enterprise and wholesale market. Both segments developed well. We have a revenue growth in the region of 12%. Financially, and this on page 20, Fastweb has a good result. We were able to have a growth on revenue by 7% and on EBITDA by 5%. Also a positive operating free cash flow in the first quarter. Overall, we are on track with Fastweb. Now I would like to hand over to Eugen to explain the financial results. Thank you, Urs. Good morning, everybody. Also from my side, we'll move on to page 22, starting with group revenue. As it was already mentioned, group revenue is up by CHF 66 million on an underlying basis. Net of currency effects, that's a plus CHF 53. Very nice growth once more from Fastweb with plus CHF 41 million. That's a plus 7% growth out of Fastweb, as it was mentioned, driven by all three segments: consumer, enterprise, and wholesale. Certainly, we have focused on the enterprise segment, which performed very well in this quarter. Swisscom Switzerland also up or slightly up CHF 15 million plus compared to last year. We move on to page 23 to dive into the CHF 15 million revenue dynamics as usual. I'll start on the left-hand side. Urs mentioned it already. Service revenue. We had a service revenue decline of CHF 51 million overall. That's split into B2C and B2B. B2C minus CHF 34 million, B2B minus CHF 17 million. In absolute terms, the larger contribution comes from the B2C segment. In percentage terms, you can see that both segments had a decline in service revenue in the order of magnitude of 3.5%. Some compensating factors during the quarter. First, the well-known device decoupling effect, IFRS 15 reconciliation line, plus CHF 24 million. This line will stay with us for another quarter and then towards the end of the year will be gone. More operatingly, the solutions revenue plus CHF 6 million, which is very positive. Moving on, hardware revenues plus CHF 37 million. That was due mainly, as was explained, to smartphone sales during the quarter, obviously associated with the respective cost of goods sold, which we're going to talk about in a second. No margin impact or very little margin impact out of these CHF 37 million. We had some growth in Switzerland also from the wholesale division. We had growth in our access business and some mobile backhauling, the major drivers behind that growth. All in all, taken together, a plus CHF 15 million on revenue. Moving on to the right side, service revenue dynamics in Switzerland, the CHF 51 million, if you compare them to the service revenue declines of the last four or five quarters, you can see that this is on the lower end of the range over the last year. In our view, you should not read a trend into this. We expect those CHF 51 million to remain also going forward on the lower end of what would be a typical run rate of service revenue decline, and we'll talk about our guidance towards the end of the presentation. The CHF 51 million certainly came in a little bit softer than expected. You remember our service revenue guidance for the full year, which was between CHF -250 million and CHF -300 million. This was certainly on the lower end of our expectations. One driver behind that is that we had higher than expected metered revenues. That was due to home offices. People stay home. There is more traffic, and they are still in the B2B segment, but also in the B2C segment on the Wireline end. Some metered revenues that got a little bit of a boost out of that effect. On the bottom right side, we break it down into Wireline and Wireless, and you can see what I just explained here in a little bit of more detail. Wireline only very slightly down with CHF -4 million service revenue decline. We would have expected this to be a little bit bigger if it wasn't for the traffic effect that I mentioned. Wireless with CHF -47 million, having the lion's share of the service revenue decline. In Wireline, there is one usual suspect that you know, the fixed voice line loss. That was the same in this quarter, more or less the same as we had in the past. Price pressure in B2B and B2C in the Wireline segment, a mixed picture and no clear downward trend as we had in the past. This is exactly due to this traffic effect that I mentioned. It's these two columns that would look differently if we hadn't had additional traffic due to home office. Major effect from Wireless. As I mentioned, within Wireless, you can see the biggest driver of service revenue decline comes out of the B2C Wireless segment with CHF -23 million, what we call a change in ARPU mix. It's basically a price erosion bucket containing effects out of the intense promotions that are out there on the market. What we call the brand shift, so customers moving from the high-end brand to the no-frill brands within our portfolio. Fixed mobile convergence going on. You know that effect. We had another quarter of roaming effect. The reason being that last year, the first quarter was not yet a COVID quarter, or just the last two or three weeks or so of the first quarter of last year, COVID. There was still travel going on in the first quarter of last year. There was not much travel out of Switzerland in the first quarter of this year. In this quarter compared to last year, we still have a roaming effect. On the B2B side, same here, roaming effect and the price pressure that we already mentioned. Moving on to EBITDA on page 24. Underlying CHF +9 million, CHF +10 from Fastweb. That's a 5% growth year-over-year and consistent with past growth and certainly a very good result. Swisscom Switzerland slightly up with CHF 7 million. I'll talk you through the major components of the EBITDA evolution on page 25. Starting to the left, we talked about the CHF 15 million-plus in revenue. I'm not going to dive into that anymore. Moving on to direct costs, increased direct costs by CHF 35 million. Half of it coming out of cost of goods. That's the hardware sales effect that we talked about in the revenue. That's basically neutralizing the margin out of our increased hardware sales. We had somewhat higher customer acquisition costs. We mentioned it. The market is still very competitive. There are lots of promotions out there. We are not driving that game, but to some extent, we participate in that game and we react, and higher promotional activities drives SAC, SOC, and also in Q1 2020, we had lower additions than this year. They are the main drivers behind the SAC, SOC. There were slightly higher outpayments driven by interconnection revenues and the technical effect on the roaming side. Nothing too noteworthy. More importantly, indirect costs. We've mentioned it. We are on track to our target of reducing indirect costs by CHF 100 million per year with indirect cost savings of CHF 27 million in the first quarter. You might have noted that there is only a very small effect out of workforce personnel expense. There is two or three reasons for that in the first quarter. One is we had extra workloads in the customer care center due to the 2G phase out that was mentioned and the legacy product phase out on the wireline side that was also mentioned, that impacts, obviously, personnel expense. We quite simply had a seasonal effect of people not liking to go on vacations during a COVID third quarter. We had higher vacation accruals, purely seasonal effects, which will level out over the rest of the year. You will have noticed that as in the past, our indirect cost savings are net of capitalized costs, because obviously, some of our personnel is used for CapEx purposes, development purposes, which needs to be capitalized. Takeaway message, we are confident that we are on track to meet the CHF 100 million plus target towards the end of the year. Moving on to page 26. CapEx. CapEx for the group at CHF 540 million, up by CHF 24 million, mostly by CHF 20 million more on the Fastweb side, which was driven by customer-driven CapEx and the 5G rollout on the CapEx side. On the Swisscom Switzerland side to the right-hand, you see our CapEx mix within Swisscom Switzerland. You can see a shift from our copper backbone, et cetera, bucket of CapEx to the fiber rollout. It's not as pronounced as it looks like here in the first quarter. That's more seasonal effect. There is certainly, as we pointed out in the full year presentation, there will be a shift from FTTS to FTTH during the year with the FTTH rollout gaining speed. Takeaway message, CapEx envelope apart from the effect that we are going to talk about out of the Salt partnership paper, CapEx envelope is as expected and as communicated for the full year. I move on to page 27, free cash flow bridge. Just two brief words. Basically no working capital impact in Q1 2021. We had a big net working capital impact in 2020. There is a year-over-year effect out of that. We just had some big prepayments in the first quarter of 2020. The important message here is no big impact out of net working capital in the first quarter of this year. Secondly, you might have noted that we paid CHF 198 million in income taxes in the first quarter. That's a mere timing issue. We don't pay every year at exactly the same point in time our income taxes. Please don't multiply this CHF 198 million by four to get to a full year tax payment. That's a phasing issue. I'll move on to page 28, the net income bridge. Just two words here. First, you see that we had a pretty significant change in the financial result with CHF 252 million other financial result. Urs mentioned it at the beginning of the presentation, I believe. That is due to the swap of our Flash Fiber stake in Italy into a 4.5% stake in FiberCop, at which point we had to mark to market the valuation of our stake in the company in our books. That gave a CHF 169 million positive impact. We had a one-off gain out of the sale of Belgacom International Carrier Services of CHF 38 million. That's the lion's share of this exceptionally high financial result. Second comment on tax. You see the tax rate, the calculated tax rate for this quarter is quite low. That is also due to the two transactions that I just mentioned that brought us gains in the books, but very little additional tax. That results in a net income of CHF 638 million compared to CHF 394 million last year. This is the +62% that was mentioned at the beginning of the presentation. Now moving on to page 29, financial implications from the partnership with Salt. Now, obviously, you will understand that the tax terms of the deal are confidential, and we can't go into too much detail on the one hand. On the other hand, we obviously need to give you some reasonable guidance on the financial impact of the deal. I will try to do my best not to confuse you too much and walk you through the mechanics of this transaction before we go to the specific guidance for 2021. I'll start with the most important [audio distortion] with free cash flow. Urs mentioned it, the deal will be free cash flow accretive. It's a long-term partnership, it will have a long-term positive impact on free cash flow in the order of magnitude of a mid-double-digit number. If you don't know anything else about this deal, this is what you should know. If you build it into your models, technically speaking, there is a long-term positive effect on free cash flow in the mid-double-digits order of magnitude. First thing to know. Second thing to know, we will have to account for this deal on the IFRS 16 [audio distortion]. That leads to two distinct periods in the life of that agreement. The first period being the rollout period from 2021 to 2025, and the second period from 2026 onwards. During the rollout period, we will have a P&L effect out of that deal. Afterwards, from 2026 onwards, there is no P&L effect. There is just a net working capital effect and the free cash flow effect continues that I mentioned. Already now, and I'll try to repeat it later, we say here 2021 to 2025, but bear in mind, 2021 is half a year. What I'm going to explain now is the typical effect on a typical full year during the rollout. We'll talk about the specific half-year effect of that deal when I talk about the guidance on the next page. Let me walk you through step by step on the typical full year effects in the rollout period. First of all, we will book revenue in the wholesale segment when and if we hand over the right of use on the feeders and on the drops to Salt over time. We will book revenue as we hand over the feeders, and the revenues represent, according to IFRS 16, the present value of the future lease payments. In a typical rollout here, this is a low three-digit number. This is what we indicated with these pluses. I'll try to give you some flavor. That's a low three-digit number in a typical full rollout here. Second step, we will have to recognize direct costs in OpEx out of the transaction as we hand over these use assets. These direct costs primarily come out of our CapEx. We have CapEx savings, which I'll talk about in a second. There's CapEx savings, and this relates to the assets that we build as we go through the rollout. There is also a second piece in direct costs, which relates to the assets that are already there. The feeders we talked about at the beginning of the presentation, the feeders are already there. The feeders will be reclassified out of fixed assets and booked into direct costs. That's the second step. Taking the first step and the second step together, wholesale revenue and direct costs, yields an EBITDA impact. In the typical full-year rollout here, this EBITDA impact is similar to the free cash flow impact in mid-double-digit number. That's important to know. Next step, CapEx. I explained where the CapEx comes from. It comes from building out the drops that we will hand over to Salt. This CapEx will be in a typical full rollout year, will be a low three-digit number again. We'll have a positive impact on CapEx, and the combination of EBITDA and CapEx taken together will give a positive operating free cash flow proxy impact, also a low three-digit number. Now comes the trick. As we hand over the use assets, Salt will not pay immediately, but there are payment terms. There is a payment schedule attached to that agreement, that means that the operating free cash flow doesn't go directly into the free cash flow, but there is a net working capital effect in between. After deducting that net working capital effect, you end up at where I started at the most important part of the whole equation, the positive long-term free cash flow impact in the mid-double-digit numbers. As I said, 2021 is not a full- year. 2021 is not a full- year. It's most probably half a year of this transaction as we start to roll out together with Salt this summer. We will give you now our update to the guidance for 2021, reflecting, among others, this agreement. Obviously, as we head next year into 2022, the full-year effects of the deal that are now explained in complicated and somewhat opaque terms will be included in the guidance that we will present in February next year. Let's talk about the guidance on page 13. We update the guidance, and we update the guidance for three reasons. Number one, as you have seen, we had some tailwinds in Q1 performance. I tried to explain that we do not necessarily expect them to continue, but they are there. We saw them in the service revenue decline that was a little bit lower than expected, and our updated guidance reflects, Number one, the Q1 financial performance. Number two, we updated the Euro/Swiss franc exchange rate to the currently prevailing rate of 1.10. We had our original planning and original guidance with 1.07. That's the second effect that goes into the update of the guidance. Finally, there is the third effect influencing the update of the guidance, and that's the Salt transaction, or to be more precise, the first half year of the Salt transaction between summer and end of this year. That's the three effects. I'll now walk you through revenue, EBITDA, and CapEx and how these three effects play into these three lines. First, revenue. We update the guidance from CHF 11.1 billion to CHF 11.3 billion. A little bit less than half of the change is due to the Salt transaction, so the first half year of the Salt transaction. With the other piece, the rest, a little bit more than half of the effect being due mainly to FX update and to a smaller amount out of the operating performance of Q1 that we took into the full- year guidance. Step one, revenue. Step two, EBITDA. We update the guidance from CHF 4.3 billion- CHF 4.3 billion-CHF 4.4 billion, so we give a range. The update is due to the three factors that I mentioned, roughly one-third each: operating performance, FX, and the Salt transaction. Why do we give a range? There is still some uncertainty associated, among others, the rollout speed, the starting point of the Salt deal. Obviously, some uncertainty still associated with the business. We are just at the end of the first quarter. This is the beginning of the year, so this is why we give a range. Finally, CapEx. We guided CHF 2.3 billion CapEx at the beginning of the year. We now guide in the updated guidance CHF 2.2 billion-CHF 2.3 billion, reduced CapEx for the group. This is mostly due to the effect from the Salt transaction to a half year effect from the Salt transaction that I mentioned. Taking everything together, no change to our guidance concerning dividend. Dividend guidance remains the same, always subject to our financial results being what we expect right now. With that, I would hand over to the operator. Thank you, Eugen. Ladies and gentlemen, to ask questions, please press star 14, star one four on your keypad. In case you need to withdraw your question, please press star 15. Thank you. As first we have Polo Tang, UBS. Hi. Thanks for taking the questions. I actually have three quick questions. The first one is really just about Sunrise UPC. What are you seeing in terms of competitive behavior? Are you seeing signs that they are maybe focusing on maximizing profitability, or are they more focused in terms of driving subscriber growth? That's the first question. Second question is really just trying to understand COVID-19 impacts in a bit more detail and how that may or may not evolve through the year. For example, how do you think about the SME segment and business customers? I'm also curious in terms of how we should think about roaming revenues from here. Also, in the presentation you mentioned the uplift in metered revenues as people work from home. Is this here to stay in terms of these metered revenues, or do you think that will fade over time? Can you talk about COVID-19 effects for this year and how you think about it? My final question is just really about the sale of your stake in BICS. Can you remind us why you decided to sell it? Specifically, where is your view of the TeleSign business within BICS? Because, obviously the multiple that you got for BICS, I think it was right about 4x EBITDA. Were you quite cautious in terms of the outlook for BICS overall? Those would be my three questions. Thanks. Good. Thank you for the question. If I start with the Sunrise UPC question, what will be the behavior in the market? If I look to the behavior in the last quarters, they are very volume driven, promotion oriented. I think this will not change in the next months. I think it will remain a promotion-oriented business. Mid or long term, it's quite hard to say. Maybe I'm the wrong one which you put this question. From the back book side, I think to be too aggressive long term on promotion is quite a risky game also for this new co. The next months, I think we will have the same behavior as we have it today. On the COVID-19 impact, we see some positive impact on solution, digitalization. It's pushing through this home office, and that's why there is a bit more solution business. This traffic effect which Eugen explained, I think they will flattening out in the next months when home office is also going down. They will be weaker, this effect, in the next quarters. Roaming also, we will have a certain relief on roaming, but a bigger travels will be not made, that's our assumption in this year. Maybe more on the retail side than on business side. We think that the roaming revenues will stay quite low also in this year, also in the third and fourth quarter. Maybe next year we will get a better situation on it. Why we sold our stakes in BICS. That has nothing to do with the performance of this company, though this company is well-performing. The main reason is we have a minority stake in this company, and it's not a very liquid actually asset. That's why if we get the opportunity to sell it's not strategic, we sold it. That's all behind it, but not because of performance of BICS. We stay a customer of BICS, we will have a further cooperation with them. Can I maybe just ask a clarification question about what you said on the second quarter? I think for B2C, you sounded more optimistic in terms of talking about improving trends in Q2 versus Q1. Can I clarify whether you were talking about subscriber trends or revenue trends or both? Subscriber trends. Q1 is always strongly impacted by these aggressive Q4 promotions. Black Friday, Christmas promotions, and also the lockdown which we had in Switzerland, where Swisscom shops were closed and this leads to a lower gross add performance. That's why we think that the performance in the next quarters will be a bit better. Clear. Thanks. Next question, Steve Malcolm, Redburn. Yeah. Good morning, guys, and thanks. Can you hear me okay? Yes. Yeah. Okay, sorry. Thanks for all the detail on the Salt transaction. I've got a couple of questions on that and then one on Fastweb. First of all, can you just clarify that the transaction is not dependent on any outcome from the ComCom investigation? Do you expect this deal to help your negotiations with ComCom or the discussions around getting regulatory clearance? Secondly, the guidance you've given, I assume that doesn't bake in anything for the retail consequences of Salt coming in as a wholesale partner. Can you maybe give us a sense of how much market share Salt has in those new fibered areas? I assume it's very low because there is no fiber. What your thinking is on the retail consequences of giving this wholesale deal to Salt. Just a question on Fastweb. I mean, your B2C growth in Fastweb is only around 2% now. All the growth's coming from enterprise and wholesale. Do you think that Fastweb can grow mid-single digits if it's only growing B2C at 2%? If not, how do you revive the growth in B2C to help your midterm growth ambitions for Fastweb? Thank you. Good. On the first question, the Salt deal and this whole impact on the COMCO. It's too early how they judge it. If you ask me, this should actually help because, with Salt now we have a Layer 1 deal in the point-to-multipoint turf, and that's exactly what COMCO is asking for. We have a solution for it. It will lead to a good competition, to a healthy competition. In my view, it should help to this investigation of the COMCO. I can't tell you today, it's too early. On the guidance topic, or what will be the impact of Salt in the retail market, if they enter the retail market. What you have to assume is that they get a bigger footprint, that's clear, but this footprint will not come from one day to the other. That's incremental. We will ramp up our footprint in the next years to 60%, from something above 30% to 60% in the next four to five years. It will be an incremental impact, but it will certainly bring a competition in the retail market. We have the advantage that we will get the wholesaler revenues. To be sustainable in the retail market, it's not only the access which is important. We were successful in protecting our market share through this combination: networks, customer service, and excellent products. We have really a superior entertainment proposition. That's why we think we will not suffer too much on the retail market, but this will certainly have an impact. The question is, who will lose these customers at the end? If Salt is competing on price. The guidance does not bake in any assumptions around future retail market share loss. It's purely the guidance you've given for Salt, purely the wholesale side of the equation. Yeah, that's right. The impact will be negligible in 2021. Clearly, it'll be negligible this year, but going forward, you would assume that Salt is doing this, that they're doing the starting point for the market share on the new fiber plant is very low because they haven't been marketing fiber because there isn't any there. Correct? Yeah. It will take time. It will be a process. We have our strategy to defend our market share, as I explained it before. In my view, there will be no big changes compared to today in the next quarters. No, I wouldn't expect much impact in Q2 and Q3. Thanks. I got the guidance there. Thank you. Thank you. Sorry. There was the last question on Fastweb, the growth profile. We are optimistic to have a strong momentum on B2B and wholesale. That the B2C market will become more competitive also because of the market entry of Iliad in broadband. On the other side, we have our strategy to defend our market shares in the broadband business. What you have to assume is that prices in Italy are on another level. Let's say the freedom to undercut the actual market prices in Italy is not so big as it was in the mobile market. Our strategy is to get a good momentum also with Swiss converged offer in Italy with a superior product portfolio, with a very transparent product portfolio. The market will be tough in B2C, but we are optimistic that we will have a further growth path also in B2C. Okay. Thanks a lot. Up next, we do have Jakob Bluestone, Credit Suisse. Hi, good morning. Thanks for taking the questions. I had three questions, please, fairly short regarding the fiber partnership with Salt. First question is, who actually makes the decision of where to build? Is it you or is it Salt, or do you do it together? Just following on from Steve's question, you presumably have less retail market share to defend in cable areas, whereas, I guess for Salt, they'd be a little bit more indifferent whether you're building in a cable area or not. Any color on who makes the decision on where to build? The second question is, can you just clarify, does Salt pay you per home passed or per home connected? From what I can see, it looks like the feeder payment is homes passed. The drop might be home connected, in which case, presumably there would be some further growth in revenues as Salt connects customers over time. If you can maybe just clarify that. The final clarification. I think you mentioned that the wholesale revenue impact in a build year would be CHF low triple-digit millions. Call it sort of CHF 100 million plus. I think you also said that the impact in 2021 from Salt roughly half of the CHF 200 million upgrades. CHF 100 million was coming from Salt contributing essentially for six months. Can you maybe just clarify a little bit? It seems like both the CHF 100 million impact is the six-month and full-year effects. Maybe it's just to do with rounding or maybe I'm just misunderstanding. Can you just clarify around the revenue impact from Salt on your wholesale revenues? Thank you. I will take the first one on the decision, how we do the rollout, and Eugen will take the two other questions. On how do we construct this network? Swisscom has the full ownership on the network strategy, on the rollout, and also that's why we decide where we want to build and how we build the network. Certainly, we will also listen to Salt, what are their ambitions? We control the network, and we decide how we do it and where we do the rollout. We do certainly the rollout on a competitive-driven approach, where we think that we get the best momentum. I try to answer the second question, if I got it correctly. We will deliver the rights of use on the feeder to Salt as we roll out. Okay? Secondly, we will deliver the drops to Salt as they need them, depending on their gain in market shares. I believe that was your question. If not, please follow up. I think you used the terminology homes passed and homes connected. I think I got it. Okay, if I can just jump in on that one. It sounds like, for the second part, for the drops, because that is something that comes over time as new drops are done, it sounds like there might still be some revenues even in 2026. It's just not immediately visible day one. Is that correct? There might still be a longer-term effect. No. If you just give us a second, then we try to answer it. Otherwise, we'll do it afterwards, okay? Just a second. Sure. Okay. Sorry, we just clarified internally. Yes, we deliver the IRU for the drops also later on in the later years, 2026+, but we have to account for them as revenue in the first five years of rollout. Sorry for the silence. Okay because we needed to clarify it with accounting. No, that's very clear. The impact on net revenue. Yeah. Net revenue. I'll start from the guidance again, which is half a year, and then it will not be too difficult to work out the full- year effect. On the revenue guidance, we updated the guidance from CHF 11.1-CHF 11.3, and that said that a little bit less than half of the effect is due to the Salt deal, and that is a half-year effect. From that, you can work backwards to the full-year effect, which I called a low three-digit number. Got it. Thank you. What you have to assume is this is related to the network rollout. It depends on the network rollout speed, how we can construct the network. It's not very easy to forecast. Sure. Thank you. As next, we do have Ulrich Rathe, Jefferies. Thanks very much. I have three quick questions, please. The first one is, did you have any benefit in the first quarter of lowering marketing or advertising cost because of the lockdown, and you decided that maybe campaigns while the shops are closed aren't so useful? You didn't explicitly mention that. I was just wondering whether that is part of the overall financial profile in the first quarter. The second question is, you mentioned that you have payment terms agreed with Salt. Could you give us just a general picture of how that payment profile looks? Is this front-loaded? Will there be higher payments during your rollout periods, or has this all been in the actual payment terms all flattened out so that effectively they pay as they get the customers? From their economic situation, it's essentially a wholesale deal, and you're sort of absorbing that in these working capital shifts. That was my second question. The third question, please. When you talk about these free cash flow accretion numbers of the deal, coming back to an earlier question. You're talking about that into 2025 and then beyond 2025. You sort of gave numbers for that. That excludes any retail effect. I just wanted to confirm that you haven't subtracted the potential retail impact when you were guiding for the free cash flow accretion. Thank you very much. Okay. I can take the question. Number one, yes, we had some seasonal effects in indirect costs. As I mentioned, we believe this will level out over the whole year. Whether it's in MarCom or somewhere else, I would not dive into that. On the quarter, you always have some seasonal effects. On the payment terms, we can't comment on the details of the agreement. There's certainly no full front load. I explained that. If there was a full front load, there would not have been a net working capital effect. On the detailed payment schedule, I ask for your understanding that we can't give any details. On the third question, the free cash flow number does not account for any retail effect. What we gave you is the impact of the deal. That's helpful. Can I just clarify your first answer? I understand there are seasonal effects. The question was whether you have held back beyond the seasonal pattern in the first quarter because of the specific situation like the shop closures. That's the question, not the usual sort of Q4 to Q1 pattern. Thank you. We actually did a little bit less MarCom than originally intended. It's not a huge effect that would impact, in any significant way, the financials of the quarter. Thank you very much. It's not a big impact. We made also big campaigns in March in the retail market. There's really not another big impact from marketing communication and COVID. Thank you. Next question, Michael Bishop, Goldman Sachs. Thanks. Morning. Just two quick questions from me. Firstly, just picking up on slide 11, where you've talked about clearly the CapEx impact of the Salt deal. The slide also refers to in combination with CapEx optimization. I just wanted to ask, with the guidance change on the CapEx, how much of that is the Salt deal? Is there actually any underlying change to your CapEx or your assumptions around how or what price you can build out the fiber to the home expansion at? My second question was just around the improvement in the B2B service revenue trends. It looks like Salt and Sunrise both over the last couple of quarters have refreshed, particularly SME mobile offers, you're reporting better trends. You're just not really seeing any impact there? What's the competitive landscape like in B2B mobile? Thanks very much. Good. I will take the service revenue trends, and Eugen the guidance on CapEx and costs. Okay. Sorry. I'll start with the first one. No, there is no significant underlying change in our CapEx guidance. The effect that we talked about on the updated guidance is primarily due to the Salt transaction, and that primarily stems that because also on CapEx, there is a small foreign exchange effect if you update the foreign exchange rate. There is no change in guidance as to our normal CapEx envelope. On the service revenue trends, I think the best picture for it you get on page 23. In the B2B markets, you see that we have price pressure, that's coming out of the corporate market and the SME market. It's price-driven, and we will have also these effects in the next quarter. There is competition in the SME mobile market. Let's say on the whole performance market shares, we are quite stable, we have still price competition and it will remain. Great. Thanks very much. Next question is coming from George Ierodiaconou. Good morning, guys, and thank you for taking the questions. I just have a few quick follow-ups. The first one is around the question that was asked earlier about the regulatory review. Perhaps just to follow up on that, was there any other party apart from Salt that was requesting, let's say, a point-to-point kind of option? Is there other interested parties in this kind of arrangement that you've announced today with Salt? The second one is on the deal itself, and apologies for this because I know you may have already given the numbers, but I was a bit confused between the annualized impact of this transaction when it ramps up versus what we are seeing this year. I just wanted to confirm some numbers, just to make sure I get this right. In terms of the overall EBITDA and operating free cash flow proxy impact, is it fair to assume that when it ramps up, not in 2021, but in the future years, this could potentially even be more than three-digit, on an annualized basis on EBITDA and probably more than double that when it comes to operating free cash flow? I just want to get an idea of the magnitude. The final question I had is more around other implications for your wholesale business from this, whether you are building in assumptions for doing something similar within your existing footprint of fiber, not just in the new builds, with other players, and whether this option could be available to them. Thank you. Good. Eugen and I will take this impact question from the Salt deal. Maybe you can start with it. Then I will take the wholesale question and the regulatory question. Okay. I will try to best simply repeat what I said, hopefully answering your question. The comments I made on EBITDA, CapEx and operating free cash flow proxy were as follows. I said that the EBITDA impact on a full- year is in the mid double-digit numbers comparable to the free cash flow impact. The CapEx impact is a low three-digit number in a full- year, and obviously EBITDA and CapEx together give the operating free cash flow proxy effect. Did that help? It's more a two-digit impact than a three-digit impact. Clear. Good. On the regulatory points, do we have other companies who are interested in a deal like Salt? We certainly understand that I would or can't comment this, Swisscom is open for partnerships if they make sense for us. These are commercial-driven partnerships. If they make sense for us, we are open for it. For all the competitors who don't want to invest, we have a very attractive wholesale offer. We get this three-layer offer, and we have, let's say, one of the strongest competitor in Switzerland. He used this three-layer offer, and he's very successful. In the point-to-point turf, the investments are done. If we talk about further co-investments or fiber partnerships, this would be in the region or in the footprint where we make the new rollout and certainly not in the existing one. Okay. Thank you. Thank you, George. As a short reminder, as we have some new in-callers, star 14, if you have any question, star 15 to withdraw a question. Next we do have Luigi Minerva, HSBC. Yes, good morning. Thanks for taking my questions. Just on the Salt agreement, again, I just wanted to get a sense of what's your view on how the economics for Salt change following this agreement as compared to a pure wholesale option. Essentially my question is whether the agreement will give Salt more room, more scope to be more aggressive on the retail pricing. Yeah, how the economics change compared to a pure wholesale solution for them. The second question is about the CapEx outlook. The savings are a positive, but I'm wondering whether you considered if there is scope to reinvest the CapEx savings from the agreement into a larger FTTH deployment. I appreciate you are reiterating your guidance today of the 60%, but perhaps it makes sense to reinvest in a broader footprint. Thank you. Good. On the economics of Salt, I can't comment it. The strategy of Salt, this is always a price-oriented one. On the other side, they get the capabilities to be a converged player, to be competitive. I can't give you insights to the economics, and I don't know that the pricing strategy of Salt, but I think it will not become more aggressive than it is already today. Maybe that's what I can say. Sorry, perhaps I didn't say it properly. For Salt, will it be more expensive to pay the IRU as part of the agreement? Yeah. I can't I can't comment on this. You certainly understand it. Okay. On the CapEx outlook, we can afford ourselves a bit higher CapEx, and we could reinvest them. That's clear. Our strategy is to make a fast rollout on fiber to the street. Bottlenecks are not only the CapEx. Bottlenecks are also the capabilities to do the rollout of such networks. Yeah. That's a bit the story, but I'm not now here to give you a guidance for 2022 forward. We want to have a fast rollout of fiber to the home. That's maybe a half of an answer. Okay. Thank you very much. Thank you, Luigi. Next, Simon Coles, Barclays. Hi, guys. Thanks for taking the questions. Just quickly on the service revenue trend. We obviously have the guidance that the full year of CHF 250 million-CHF 300 million impact, and the first quarter was only CHF 50 million. I'm just wondering why you don't think it stays at that sort of CHF 50 million range given all lap roaming headwinds, and you've obviously got a little bit of a boost from the RGU mix on the fixed side. Simon, I'll take this one. Yes, you are right. If you just multiply the CHF -51, you obviously don't end up at CHF 250-300. I think in updating our guidance, we also acknowledge the fact that within that range of CHF 250-CHF 300, we are probably moving towards the lower range rather than the upper end. Still, we see not only, as I mentioned when I discussed page 23, we don't necessarily expect the trend to continue or the CHF 51 to be the going run rate. There are components in the service revenue mix that could well worsen. We mentioned the headwinds from traffic revenues that are there right now, but that will be gone very soon. We also talked about price pressure in the B2C. Sorry, in the B2B segment. That could very get worse over time. We made a balanced assessment and took all of this into account, not just the Q1 numbers, and came to the conclusion that we stick to the range, but I think you spotted it correctly. We are trending towards the lower end of the range as things stand right now. Okay. That's clear. Thank you. Next, Steve Malcolm, Redburn. Yeah. Sorry, guys. Another couple of questions, if I could quickly. Just a quick one on capitalized costs. They rose quite sharply in Q1. I know they were up CHF 30 million year-on-year, which was a big component of EBITDA increase. Is that something we should expect for the full year or through the year? Should we expect capitalized labor costs to rise every quarter to help EBITDA? Just coming back to Salt, I just wanted to dig a slightly deeper again. The deal is structured as an IRU. Can you give us a sense of how long that IRU lasts? Are we talking 15-20 years? Should we expect Salt to have to make further payments when the IRU period ends? Just for the sake of clarity, when the five-year period is over, does Salt effectively have access to your network with no ongoing rental costs? How do the rental costs work beyond that? From what the press release, I guess they're kind of zero, but be helpful to understand the obligations beyond 2026. Thank you. Maybe on the Salt question, we don't comment commercial details on this contract. On the capitalized expense, I think it was in the first quarter, probably towards the higher end, as you saw. It's not only capitalized expense, it also includes other revenue. We had a not very significant, but we had an effect in there, I think, from a sale of real estate or something like that. It starts the upper end of what we would expect for the coming quarters. That's correct. Okay. Q1 was abnormally large capitalized cost increase versus what we should expect through Q2. Cool. Okay. That's what I would say. Thank you. Okay. Timing-wise will break. Thank you. The last question. Last question. Well, George was in the pipeline, but he does withdraw his question, so no more questions. Back to you. Okay, thank you. With that, we would like to thank you and conclude today's conference call. Should you have any further questions, please do not hesitate to contact us. Speak to you soon. Have a great day. Thank you. Bye-bye.