Slides
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Analyst and investor presentation 13 February 2025 FY 2024 results Strong today , stronger tomorrow
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2 Financial communication in 2025 Closing Vodafone Italia transaction 31 Dec 2024 FY 2024 analyst presentation 13 Feb 2025 Analyst estimates request 21 Mar 2025 Q1 2025 results presentation 8 Apr 2025 8 May 2025 • Financial results 2024 – audited - P&L and CF statement excl. Vodafone Italia - Net debt (incl. lease liabilities) as of 31 Dec 2024, incl. Vodafone Italia based on provisional purchase price allocation (PPA) • Selected financial and operational KPIs for Vodafone Italia and Fastweb + Vodafone 2024, pro forma and preliminary - Pro forma: LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited - Preliminary: restatement and consolidation ongoing, to be finalised by 21 March 2025 • Preliminary guidance 2025 for group, Switzerland and Italy, based on preliminary pro forma financials, provisional PPA and new segment naming • YOY changes for group and Italy compared to pro forma 2024 figures • Updated guidance 2025 based, inter alia, on completed restatement and consolidation as well as advanced PPA • Average of collected analyst estimates for Q1 2025 and FY 2025-2028 Estimates collection Analyst consensus release • Updated EBITDA guidance 2024, as a result of earlier closing published on 2 Jan 2025 • Pro forma facts & figures Q1-Q4 2024 for group and segment Italy Explanatory remarks Quiet period
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3 Agenda Summary 2024 Solid 2024 Christoph Aeschlimann, CEO Swisscom Group strategy Strong today, stronger tomorrow Christoph Aeschlimann, CEO Swisscom Business review Switzerland Cement #1 position in Switzerland Christoph Aeschlimann, CEO Swisscom Business review Italy Build #1 customer choice in Italy Walter Renna, CEO Fastweb + Vodafone Financial results and guidance Rock-solid financials Eugen Stermetz, CFO Swisscom Closing remarks Wrap-up Christoph Aeschlimann, CEO Swisscom
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4 Christoph Aeschlimann CEO Swisscom Summary 2024 Solid 2024
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Remarkable commercial momentum 2nd best mobile performer, NPS improvement, strengthened IT and wholesale standings Growing with disruptive innovation Successful start of Fastweb Energia, increasing customer value with a strong take-up Excellent AI delivery NEXXT AI factory, 1st Italian LLM, internal AI adoption Positive financial results Top line and underlying EBITDA as expected, successful monetisation of FiberCop stake Leading customer experience Winner of all service and network tests, NPS leadership and new loyalty programme Exceptional in innovation and AI Next-level connectivity and entertainment, Swiss AI platform, Swisscom Sign and sure Increasing FTTH footprint Swisscom FTTH with >50% HH coverage, 5G+ population coverage up to 86% Solid financial performance Strong Telco cost execution: digital/AI frontrunner, near-shoring, network and IT simplification 5 Commercially solid and an industry-transforming transaction in Italy Successful Vodafone Italia acquisition and closing to combine with Fastweb and create #1 customer choice in Italy Highlights 2024
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6 Solid subscriber footprint in Switzerland, and growing in Italy Postpaid Broadband TV2 Fixed voice Wholesale +110 RGUs in k market share 1 (YOY) Net adds in k 5'460 53% (-1.0pp) +10 +22 +35 +43 Q1 Q2 Q3 Q4 -39 -44 -891'137 +39731 1'967 47% (-1.4pp) 1'493 38% (-0.4pp) -11 -15 -12 -6 -23 -22 -22 -22 +12 +8 +10 +9 -15 -9 -9 -6 Highlights 2024 1) Swisscom estimates as per 30 Sept 2024, 2) RGUs without OTT subs YTD Mobile Broadband Wholesale +421 3’930 5% (+0.2pp) +102+113 +92 +114 Q1 Q2 Q3 Q4 -57 2’544 15% (-0.1pp) +257 Net adds in k 905 -19 -25 -9 -4 +72 +58 +54 +73 RGUs in k market share 1 (YOY) YTD
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7 Financially solid, and in line with updated guidance Revenue in CHF mn 11'036 -0.3% EBITDA in CHF mn adjusted for closing- reported related cost1 4'355 4'552 -5.8% -1.5% CAPEX in CHF mn 2'312 +0.9% FCF in CHF mn 1'437 -2.9% Net income in CHF mn 1'541 -9.9% Swisscom Switzerland Fastweb Dividend CHF 22/share confirmed Net debt in CHF mn 15'597 Leverage preliminary pro forma 2.4x +0.9x Credit ratings S&P A- Moody’s A2 Telco service revenue Telco cost savings -41 +72 -112 Solid financial performance, with robust FCF generation Attractive dividend and healthy financial profile Underlying EBITDA changes as expected, Telco cost savings in Switzerland and growth in Italy 'Pro forma': restated LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated as of 1 Jan 2024, on an unaudited basis. Preliminary': harmonisation of accounting policies and reporting ongoing, consolidation preliminary, to be finalised by 21 March 2025. 1) Adjustments for costs related to closing in 2024 of CHF 197mn (integration cost of CHF 167mn and transaction cost of CHF 30mn for Vodafone Italia) +9 Highlights 2024 adjusted adjusted in CHF mn
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8 Strong today, stronger tomorrow Christoph Aeschlimann CEO Swisscom Group strategy
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§ • Driving scale and potential for convergence • Increasing efficiency gains through AI and automation • Exploiting opportunities beyond connectivity • Creating new business models in future ecosystems 9 Supportive industry trends leveraging new opportunities and growth Rapid innovation cycles e.g., (Gen) AI, digital identity/trust, robotics, LEO satellites Evolving B2C customer needs e.g., ageing society, rising demands for cybersecurity and reliability Opportunities In-market consolidation in EU Telco e.g., Italy, UK B2B demand shifts to new services e.g., threat detection & response, cloud native & flexible WAN Trends
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Strengths for long-term success The new Swisscom chapter Strategic priorities 2025 • Cement #1 position in Switzerland • Build #1 customer choice in Italy 10 Strong today, stronger tomorrow, with a strengthened profile in Italy • Industry-transforming transaction • A leading converged challenger in Italy • Proven strategy • Champion in commercial excellence • Force in NextGen networks • Powerhouse in innovation • Leading in AI adoption • Pioneer in sustainability Stronger tomorrow Strong today Swisscom horizon
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11 Proven group strategy to empower the digital future as Innovators of Trust Delight customers Create unique customer experiences every day Achieve more with less Innovate for growth Perform together Deliver digital products and services of the future Drive transformation at pace with AI, digitalization and simplification Develop ourselves and our collaboration relentlessly Presentation focus Strengths for long-term success
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Strong value focus and execution Market leading services and customer interactions 12 A champion in commercial excellence as leader in digital life and digital business Best-in-class propositions and go2market Swisscom's key differentiators … … enable exceptional commercial achievements Strengths for long-term success 1) Source: BrandFinance, brand value ranking 2024, 2) Market leader on Mobile Number Portability in H2 2024 Best NPS Multi-award winning Strongest Telco brand Growing customer base Leading market position Record-low churn rates Unique success story 1 Best MNP 2 Higher NPS
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15% 19% 40% 2024 2025 target 2030 ambition 2035 ambition 52% ~57% 75-80% ~90% 99% 86% ~90% ~95% 5G 5G+ 2024 2025 target Continuous investments in performing networks and superior customer experience 13 Proven network leadership Extend FTTH coverage1 Increase 5G pop coverage 75% ~79% ~90% Most awarded operator in terms of national overall fixed broadband and mobile experience5Best fixed and mobile networks2 2024 2025 target 2030 ambition 55% ~65% ~90% 2024 2025 target 2030 ambition 5G Vodafone Passive FTTH Active FTTH 40% 46% 50% Force in NextGen networks as foundation for digital Switzerland and Italy 2030 ambition 2024 Strengths for long-term success 1) Share of total 5.45mn HHs in Switzerland, share of total 29.2mn HHs and companies in Italy, 2) connect tests 2024, 3) Passive FTTH consists of primary network and/or GPON equipment (in central office) of Fastweb being connected to backbone network of Fastweb, 4) Active FFTH consists of secondary and/or primary network incl. GPON equipment of FiberCop or Open Fiber being connected to backbone network of Fastweb, 5) Source: Opensignal fixed broadband experience report (Nov 2024) and Opensignal mobile network experience report (Nov 2024) 3 4
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Cybersecurity / Defender AI End-2-end security solutions from TDR1 to endpoint and application security NextGen connectivity Development of state-of the-art connectivity offering converging Telco, security & value-added services Swisscom Sign Qualified electronic signature (QES) service to sign documents quickly, securely and with legal validity Fastweb Energia Fix price energy offering with track record in growing customer base Swisscom Sure Digital-first 'switch-on' insurance with simple, transparent & flexible products 14 A powerhouse in innovation providing customers with future-ready services Swisscom Workplace Cutting-edge SME business workplace solutions with modular & customisable IT offering Entertainment #1 with strong premium content, innovative streaming & multitainment centres Future of Network Swisscom’s innovation fields: Cloud & Applications AI & AutomationSecurity Entertainment Digital Services Trust Strengths for long-term success NEXXT AI Factory / Swiss AI platform Implementing generative AI full-stack supercomputers based on NVIDIA technology (see next page) 1) Threat Detection & Response
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15 Leading in AI adoption in Switzerland and Italy AI Professional Services AI solutions Proprietary LLM1 models Italian LLM MIIA LLM NVIDIA SuperPOD Swiss AI Platform NEXXT AI Factory App Consulting Infra Business cases Internal excellence (Gen) AI- driven bots Scaled Employee AI tools AI-based personalisation & targeting Network quality & efficiency SAM CHIARA AI one-stop shop incl. 3rd party offerings Sovereign infrastructure National data storage CHF 100mn investment over the next years 1st NVIDIA SuperPODs in Switzerland and Italy Compliant with local regulation Strengths for long-term success 1) Large language model
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16 A pioneer in sustainability with more than 25 years of ESG commitment Our achievementsOur strategy in Switzerland MSCI ESG ESG risk rating AA Leader EcoVadis Supply chain rating Platinum medal Top 1% of companies ESG Leader ZKB ESG analysis 2023 1st place Ethos Digital responsibility study 2023 CDP Climate change rating A Rating Sustainalytics ESG risk rating Industry Top-rated 16.8 (low risk) • Achieve Net-zero by 2035 (SBTi) • Invest in energy-efficient networks; secure 100% renewable electricity • Extend circular economy; engage in nature restauration Our commitment for the planet Our commitment for our communities Our commitment as a responsible leader • Deliver smart digital solutions for our customers • Invest in start-ups/innovation with positive climate impact • Be an employer of choice • Develop professionals and leaders of today & tomorrow • Promote diversity and equal opportunities • Provide education and raise awareness for digital topics • Provide reliable ultra- broadband service in CH • Ensure accountability in security and ethics • Secure responsible use of AI • Operate the most secure network in CH • Ensure fair supply chain • Enable customers to use artificial intelligence safely Sustainable operations Positive impact for customers & society Strengths for long-term success
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17 An industry-transforming transaction in the Italian market 17 Substantial value creation Acquisition of Vodafone Italia Highly tangible synergies Dividend increase Clear deleveraging path 100% EUR 8.0bn (EV) Compelling strategic rationale Scale Convergence Infrastructure Benefits for customers and Italy Best-in-class connectivity and services for consumers Digital backbone for businesses Infrastructure and innovation pillar of Italy The new Swisscom chapter
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18 Swisscom with strengthened profile as #1 in Switzerland and sizeable #2 in Italy 8.0 2.6 0.4 11.0 Switzerland3 Italy3 Other3 8.0 6.9 0.4 15.3 Revenue 2024 reported1 and preliminary pro forma2, in CHF bn Revenue share excl. Other 7 135 Mobile Broadband ~1.4x 26% Market share4 in RGUs 30% 53% 47% FTEs in k 48% 52% B2C 47% 53% B2B 80% 20% 54% 7% 39% IT Telco B2B B2C Wholesale Telco revenue 58% 42% B2C 41% 59% B2B 86% 14% 44% 11% 45% IT Telco B2B B2C Wholesale Telco revenue 54% 46% The new Swisscom chapter excluding Vodafone Italia1 including Vodafone Italia2 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) Reported revenue Swisscom Group 2024, 2) Revenue includes intercompany consolidation between Fastweb and Vodafone Italia of EUR -0.1bn for Italy. For consolidation purposes CHF/EUR of 0.9513 has been used for FY 2024, 3) Segment naming changed: Switzerland = new segment naming for Swisscom Switzerland, Italy = new segment naming for Fastweb and Vodafone Italia, segment 'Other' unchanged, 4) Swisscom estimates as per 30 Sept 2024, 5) 13k FTEs segment 'Switzerland' only. 17k FTEs including segment 'Other'
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19 Roadmap 2025 to drive long-term value creation Manage Telco top line Execute Telco cost transformation Achieve profitable IT growth 1 2 3 1 2 3 Build #1 customer choice in Italy Integrate Vodafone Italia and capture synergy potential Stabilise B2C Telco top line and grow beyond core Scale up B2B IT and Wholesale Cement #1 position in Switzerland Strategic priorities 2025
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Christoph Aeschlimann CEO Swisscom Cement #1 position in Switzerland Business review Switzerland 20
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• Entertainment hub extension • New insurance portfolio • New innovative offerings • Swiss AI platform • SME IT Solution • Pilot B2B NextGen connectivity • Coverage expansion • FTTH >50% HHs • 5G+ 86% population • Winner of all service tests • New loyalty programme • Swisscom Benefits • Successful product launches • Next-level Home connectivity • Full launch Enterprise Mobile • Best fixed, mobile and 5G network in Switzerland Successful 2024 building a strong foundation for the future 21 Delight customers Innovate for growth • Digital frontrunner • New (Gen)AI-driven chat bot • Digital assistance in shops • Successful near-shoring • Call centres expansion • DevOps growth in Riga and Rotterdam • New B2B target operating model • IT simplification • Shift to AWS cloud leveraging cloud native environment Achieve more with less Achievements 2024
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22 B2C Telco: ARPU stimulation through effective value management Bring 'Swisscom Benefits' to the next level and push loyalty and engagement with frequent, exclusive advantages W- blended Postpaid value 35 49 ARPUs in CHF (YOY)Wireless W+ blended W+ bundle 40 89Wireline Successful ARPU stimulation through well-targeted measures • Effective migration to higher-value offerings and phase-outs • Cross- and up-sells driving value: FTTH, FMC1, VAS • New product launches for premium play, e.g., best connectivity with WIFI 7 • Smart promotional play Leading customer satisfaction further confirmed • Winner of all connect tests • New loyalty programme 'Swisscom Benefits' successfully launched Increase customer value across all brands with more-for-more offers, fibre-speed upgrades and FMC, coupled with full-service approach, enabled by AI-supported personalisation Reinforce NPS leadership advantage with best product / service, offerings with strengthened price / value perception, exclusive benefits and customer proximity (-1)(-1) (+1) (+0) Achievements 2024 Focus 2025+ NPS development (2022-2024, Ø p.a.3) Swisscom Competitors 2022 2024 Market shares (in % of Telco service revenue2) 21 17 9 7 0 -9 Swisscom Competitors 2022 2024 57 57 30 29 10 11 Strategic priorities 2025 | 1. Manage Telco top line 1) Fixed mobile convergence across all brands, 2) Swisscom estimate for top 3 players; 9M/2024 values for 2024, 3) Net Promoter Score (NPS), Source: Swisscom
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B2C Telco: RGU stabilisation with multi-brand play and commercial excellence 23 Best-in-class customer loyalty • Successful churn management driven by strong convergence play and customer satisfaction Achievements 2024 Expand reach with increased presence, powerful marketing communication and next-level brand play Expand inflow momentum on 1st brand with new multi-mobile family offering and devices, next-level Home connectivity, security play and value-adds Drive 2nd / 3rd brands' growth with full-service positioning coupled with smart promotional behaviour, while keeping cannibalisation low Focus 2025+ Sales push across all customer touchpoints • Promotions and sales-oriented incentive schemes Enhanced promotional approach to counteract market intensity • Swisscom acts as price follower • Value promotions extended with selective discounts and giftings in H2 across all brands Strategic priorities 2025 | 1. Manage Telco top line 1) Own brand, 2) FMC share of postpaid value HHs (1'130k converged HHs, out of total HHs (2'321k, all brands) with at least 1 postpaid value subscription). Actual penetration likely higher due to overlaps with SME segment, 3) FMC share of BB HHs (1'130k converged HHs, out of total BB connections (1'697k, all brands)) -26 -41 -75 +69 blue penetration 49%2 -0pp YOY RGU base in k (YOY) 7'508 Postpaid FMC penetration 67%3 +1pp YOY 76%1 +3pp YOY 90%1 +1pp YOY 2nd/3rd brand penetration 34% +3pp YOY 11% +2pp YOY Churn rates (YOY) Broadband 8.8% stable Postpaid value 8.2% (+0.4pp) BB TV Voice (-73)
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24 B2C Telco: integrated, innovative ecosystem for enriched customer experience Grow with VAS and beyond core • Augmented VAS portfolio • 'Swisscom sure' with five offerings, together with partner Revenues beyond core1 (CAGR 2020-24) blue Sport subs (CAGR 2020-24) Achievements 2024 Scale security offerings as integral element of connectivity propositions and top bundling options Expand leading position in entertainment through scaling sports and integrated customer journeys across all screens (TV, mobile, cinema) Develop 'Swisscom sure' portfolio through expanded operations and launch of complementary products Focus 2025+ Best Swiss entertainment proposition further evolved • Best aggregator strategy reinforced: new streaming bundle 'blue Binge', all-in TV offering (XXL), updated user experience and migration to new OS • blue Sport with ongoing growth momentum thanks to largest football license portfolio and best content offerings • Cinema business further developed with footprint extension to Western part of Switzerland +13% +5% Strategic priorities 2025 | 1. Manage Telco top line 1) Includes revenues from accessories, smart life, security & services, payment
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B2B Telco: providing best-in-class propositions and customer services 25 NextGen convergent offering • Development is on track • First pilot customers onboarded • Some world firsts features ARPUs (in CHF) Wireless ARPUP1 26 47 (-1) (-2) Corporate 43 NPS 2024 (weighted average) + 3.5pp vs. avg. 20-23 SME 35 + 10.0pp vs. avg. 20-23 -13 -3 -14 +41 RGU base in k (YOY) 2'549 Mobile BB TV Voice (+11) Further NPS improvement • Outstanding customer care and proximity • MySwisscom Business as effective self-care tool Achievements 2024 Launch NextGen quadruple convergent offering fully modular offering, integrating security, mobile, wireline and value- added services Improve competitiveness and customer loyalty through attractive pricing, unique convergence proposition and targeted cross- and upsell offers Drive customer value management to the next level by leveraging data and analytics to create tailored retention and win-back campaigns New mobile offerings well perceived • Commercial launch of 'Enterprise Mobile' portfolio • 5G Mobile Private Network launched • Ongoing migration to new Enterprise Connect portfolio Focus 2025+ NextGen connectivity offering Strategic priorities 2025 | 1. Manage Telco top line 1) Average revenue per underlying product
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38.9% 43.6% 26 Wholesale Telco: grow revenue through trust and technological excellence More attractive roaming and interconnection conditions • Optimised agreements with several network partners realised to ensure long-term value FTTH penetration in the Wholesale RGU base RGUs in k Wholesale customers Achievements 2024 Strategic priorities 2025 | 1. Manage Telco top line #1 partner for wholesale services in Switzerland • Strengthened competitiveness thanks to FTTH extension and nationwide scalability • Enhanced customer experience with simplified collaboration and optimized digital customer interfaces • Nearly stable Wholesale services revenue: winning customers from alternative networks Focus 2025+ Tap into new top line potential by winning new MVNO customers and launching new leased line products Grow access services revenue based on long-term contracts, leveraging FTTH footprint and one- stop-shop proposition throughout Switzerland Keep customer satisfaction high with highly performing networks, great quality-services and best personal and digital customer experience 1) Incl. leased lines, infrastructure services, MVNO and other 692 731 2023 2024 t/o fibre t/o copper +4.7pp Wholesale services with underlying growth trend Wholesale services revenue, CHF mn Other1 Access services 342 FTTH rollout Migration from copper
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27 Telco cost: drive cost efficiency in sales and service Innovative phygital shop formats • Further rollout of pop-up shops and shopolinos 3rd party near-shoring expanded • Own, 2nd and 3rd brands with call centres in Kosovo, Poland and Bulgaria eCare2 Contact centre workload New (Gen)AI-driven chatbot performance - B2C Automation rate Solution rate 2x 3x indexed, vs. old chat bot Digital push - B2C indexed, YOY +4% -6% Shopolino Pop-up shop Achievements 2024 Scale 3rd party near-shoring building on positive NPS results to increase efficiency of non-automated workload Drive efficiencies and improve experience with AI through co- pilots for agents and LLM bots in sales and service. Interactions become AI- embedded, context-driven and digital- first Accelerate shop transformation with lean cost structures (digitisation / self-service, smaller shop formats) Focus 2025+ Commercial excellence at next level thanks to AI and digitization • New (Gen)AI-driven LLM-based1 chat bot with significant performance boost • Scaling of digital assistance in shops to drive self-service and balance peak loads • Apps scaled up: >850k active monthly users on own brand and >200k on wingo 1 year after launch Strategic priorities 2025 | 2. Execute Telco cost transformation 1) Large language model, 2) Portion of the tickets resolved via online channels
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28 Network and IT cost: drive efficiency through network and IT transformation More reliability and resilience • Zero escalated major incidents • State-of-the-art reliability engineering and automated AI-supported monitoring Ongoing simplification • Mobile transport network migrated to future-proof converged network • Reduction of applications and network platforms on track • Scaled-up DevOps leveraging international talent pool 2023 2024 2030e 2035e c. -50% 2'000k # active copper lines # production locations 1.7k Reduced major incidents indexed, YOY Phased-out platforms (IT and network related) Reduced critical bug bounties indexed, YOY DevOps centres FTEs 2023 2024 >500 >600 +20% Achievements 2024 Timeline of cooper phase-out with CHF c. 100mn cost savings/year by 2035 Execute on state-of-the-art IT infrastructure, shifting to AWS cloud while leveraging cloud native environment and transforming to Swisscom Digital Architecture2 Boost FTTH migration and copper phase-out, enabling significant OPEX savings over time. Explore alternative high bandwidth connections for rural areas1 Drive process excellence with data analytics and AI-driven tools to reduce manual workloads 2019 -23% 2020- 2024 2026e -36% Strategic priorities 2025 | 2. Execute Telco cost transformation 1) Such as trenching, FWA bonding and low earth orbit satellites, 2) Modular architecture based on TM Forum’s open digital architecture Accelerated FTTH rollout • Initiated gradual copper phase-out • Avg. cost/FTTH connection further optimised Focus 2025+ -27% -22%
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29 B2B IT: leading position to capture market growth in IT Achievements 2024 IT service portfolio enhanced • Acquisition of Camptocamp, a market leader in open-source solutions • PARATO.ch, an established JV to create a digital marketplace for SMEs Several product and service launches to grow • New state-of-the-art portfolio with modular, scalable and integrated IT solutions for SMEs • Swiss AI platform enabling flexible access to NVIDIA supercomputers and (Gen)AI services Strengthened position in the Swiss IT landscape • Refreshed brand positioning as digital leader for enterprises Push data and AI proposition including leveraging new Swiss AI platform with its capabilities and services Commercialise cloud and security offerings by leveraging broad IT services portfolio, including public and private cloud and cybersecurity Ramp-up commercial efforts in SME market with a modular and customisable IT offering, enabled by qualified, regional partner network Focus 2025+ B2B IT service revenue1 in CHF mn 2023 2024 1’154 1'191 +3.2% S u p p o r t . C o n s u l t . A d d i t i o n a l s e r v i c e s . Reliabletechnology Business Applications Powerfulplatform Comprehensive ecosystem New IT portfolio for SMEs Growth drivers 2024 IT infrastructure and security services Business and application services Strategic priorities 2025 | 3. Achieve profitable IT growth 1) YOY growth of CHF +37mn, t/o CHF +7mn organic, CHF +30mn non-organic (Axept and Camptocamp)
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30 B2B IT: transform operating model to improve IT profitability IT portfolio IT portfolio further simplified • Realise cost savings by streamlining portfolio and discontinuing legacy platforms Business Applications SAP Security Workplace and UCC Cloud Vertical Solutions IT profitability (EBITDAaL margin) 2024 Mid-term target 1.5xRevised project management approach • Adoption of systematic project delivery methodologies Achievements 2024 Strengthen subsidiaries ecosystem and achieve synergies through shared services and aligned G2M approach through orchestrated sales Transform operating model including efficiencies from re-configuring IT delivery value chain and operational synergies Boost operational excellence by streamlining operations through back-office consolidation, standardisation of commercial catalogue and process automation Focus 2025+ New target operating model announced • Achieve consistent market orientation while ensuring value creation and entrepreneurial responsibility • Successful revamp of GTM approach, with better aligned sales channels to customer needs Strategic priorities 2025 | 3. Achieve profitable IT growth
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2024 mid- term ambition Cement #1 position in Switzerland Stable free cashflows Wrap-up • Manage Telco top line Delight customers with enhanced connectivity experiences and capture growth opportunities beyond core • Optimise Telco cost base Execute Telco cost transformation with AI, digitalisation and simplification, and realise cost savings of CHF >50mn/year • Boost CAPEX efficiency Improve capital allocation and investment effectiveness • Extend FTTH coverage Invest CHF c. 500mn/year in FTTH to cover 75-80% of Switzerland by 2030 and drive market competitiveness, wholesale growth and operational excellence • Achieve profitable IT growth Lever position as a leading Swiss IT service provider and streamline operating model to enable growth opportunities and efficiencies 31
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32 Walter Renna CEO Fastweb + Vodafone Business review Italy Build #1 customer choice in Italy
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33 Another extraordinary year for Fastweb with the transaction as key highlight Delight customers Innovate for growth Achieve more with less Vodafone Italia acquisition to combine with Fastweb and create #1 customer choice in Italy • Successful launch Fastweb Energia serving 60k customers in 9 months • Strong AI delivery • NEXXT AI factory opening • Developing MIIA, 1st Italian LLM2 • FWA partnership with Eolo for wholesale clients in white areas • Sale of 4.5% FiberCop stake at attractive terms3, confirmed long-term MSA conditions • Partnering with AWS, to enable LLM2 training and lever AI capabilities • Internal adoption of AI widespread, with >60% employees using AI-based productivity tools everyday Achievements 2024 1) Mobile Network Portability platform, 2) Large language model, 3) Gain of EUR 189mn (recognized directly in equity and booked as other comprehensive income), 100% cash-in in the amount of EUR 439mn • Best MNP1 in H2 2024 and best Ookla Speed Score • NPS strengthened supported by AI-tools • IT position reinforced, with new clients, services and strategic platforms, e.g. DefenderAI • Wholesale: >900k UBB lines, +40% YOY, adding new major clients
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34 A unique opportunity to build #1 customer choice in Italy • Active in all customer clusters • B2B focus on SOHOs and SMEs • Wholesaling in mobile Customer segments Assets • IoT: big data • 5G: campus networks and FWA offerings • Cloud: partnership with Microsoft Innovation • Strong DNA in mobile and beyond core • Established player with a leading market presence (shops and salesforce) Market positioning • Active in all customer clusters • B2B focus on corporates and public administration • Wholesaling in fixed • Best-in-class fixed network access with own backhaul infrastructure • Five data centres and own security operation centres • Great talent, skills and competencies • VAS: insurance, security and energy • ICT: cyber-security and cloud • AI: 1st Italian Techco collaborating with Nvidia • Strong DNA in fixed and VAS / cloud / security • Leading challenger with a trusted quality brand • Entrepreneurial culture • Best-in-class mobile network with sizeable 5G spectrum position • INWIT partnership on passive site sharing • Great talent, skills and competencies Highly complementary combination driving … scale infrastructureconvergence Strategic priorities 2025 | 1. Integrate Vodafone Italia and capture synergy potential
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35 Complementary combination with scale and leading positioning OP3 OP5 total revenue indication B2C+ B2B + Wholesale (W- and W+)B2C B2C + B2B + Wholesale (W- only) New entrants Fastweb + Vodafone positioningKey financials 2024 OP1 Strategic priorities 2025 | 1. Integrate Vodafone Italia and capture synergy potential 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) EBITDAaL excludes cost related to discontinued services from Vodafone group, CAPEX adjusted for additional EUR c. 70mn for tower consolidation on INWIT network, in connection with INWIT agreement to be reimbursed by Vodafone group as part of the purchase price adjustment, 2) Revenue includes intercompany consolidation between Fastweb and Vodafone Italia with an impact of EUR -0.1bn, minor impact on EBITDAaL and no impact on OpFCF 1P fixed or mobile FMC FMC+Vodafone Italia preliminary pro forma1, EUR bnEUR bn Fastweb 4.6 Revenue 1.0 0.3 OpFCF adjusted 0.7 CAPEX adjusted 7.3 Revenue 1.8 EBITDAaL adjusted 0.5 OpFCF adjusted 1.4 CAPEX adjusted 2.8 Revenue 0.8 EBITDAaL adjusted 0.2 OpFCF adjusted 0.6 CAPEX preliminary pro forma2, EUR bn EBITDAaL offerings customer segments
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36 Successful closing and efficient 'coming together' campaign Transaction announcement Closing and ExCo announcement MIMIT/ICA approval AGCOM approval Golden power approval17 May 24 CEO appointment Day 1 communication campaign 15 March 24 24 Sept 24 31 July 24 19/20 Dec 24 31 Dec 24 Deal milestones Strategic priorities 2025 | 1. Integrate Vodafone Italia and capture synergy potential EU FSR approval 13 Nov 24 Day 1 'insieme, siamo futuro' 7 Jan 25 For the market • New era for Fastweb + Vodafone Italia • Market positioning for joint entity combining best of both For customers • Deliver WOW experience at attractive conditions • Enable undisrupted customer processes For employees • Create excitement and engagement with maximum clarity on future operating model • Ensure organisational readiness Swiss competition commission approval 23 July 24
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Type of synergies Run-rate (EUR mn) Key drivers Direct cost ~240 • Mobile (80%): removing MVNO costs of Fastweb • Fixed (20%): optimising network access costs Indirect cost ~300 • Optimisation of services provided by Vodafone (~1/2) • Sales and distribution rationalization, IT and network integration, consolidation of overlapping functions (~1/2) CAPEX ~60 • IT and network: CAPEX efficiency Total ~600 37 Synergy and integration cost confirmed Clear synergy realisation path1 CAPEX Indirect costs Direct costs 100% ~70% ~10% ~40% ~90% ~40% ~50% ~10% 40-45% ~80% 100% Synergy ramp-up EUR ~700mn one-off integration costs2 t/o EUR 250mn OPEX and EUR 450mn CAPEX Integration cost NEW ramp-up ~15%1 EUR 104mn earlier effect due to closing in 20242 Strategic priorities 2025 | 1. Integrate Vodafone Italia and capture synergy potential 2024 2025 2026 2027 2028 2029 Highly tangible synergies of EUR ~600mn p.a. by YE 20291 1) EUR 104mn integration cost were recognized in 2024 due to closing in Q4 2024 and are part of the costs originally expected in 2025. These costs relate to the planned exit from existing MVNO agreements in connection with the migration of Fastweb mobile customers to the Vodafone Italia network, total amount of integration costs is unchanged, 2) Excluding non-cash effect in the amount of EUR 72mn recognised in 2024 (part of originally expected up to EUR 150mn in 2025)
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38 Robust integration plan in execution 2025 2026 2027 ~10% ~40% ~70% Direct costs (% of total run-rate) Indirect costs (% of total run-rate) Strategic priorities 2025 | 1. Integrate Vodafone Italia and capture synergy potential Commercial Organisation and culture Network and IT • 1 corporate brand: Fastweb + Vodafone; 3 commercial brands: Fastweb, Vodafone, ho. • Integrated base management and cross-/up-selling, convergence • Initial optimisation of Vodafone services • New, integrated commercial strategy • Integrated base management and cross-/up-selling, convergence • Optimisation of Vodafone services • Initial sales/distribution optimisation • New commercial strategy in full swing • Integrated base management and cross-/up-selling, convergence • Further optimisation of Vodafone services • Further sales/distribution optimisation • Migration of SIMs to own network, removing MVNO costs of Fastweb • Initial optimisation of Vodafone services • Achieving full owner economics in mobile, all SIMs on own network • Start optimising of fixed access costs • Optimisation of Vodafone services • Further optimisation of Vodafone services • Further optimising of fixed access costs • Legacy IT retire / modernization programs • 2 legal entities, 1 management team • Initial culture alignment and change management • One legal entity, one integrated organisation • Consolidation of overlapping functions • Culture building and alignment • Full consolidation of overlapping functions • One joint culture 2025-2027 integration plan to capture major share of synergy potential
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39 B2C W+ Telco and Energy: stabilise core connectivity and scale up energy Strategic priorities 2025 | 2. Stabilise B2C Telco top line and grow beyond core High-quality approach in Telco • Value differentiation through product innovation (e.g., TRE PER TE1, cyber- security insurance, smart payment solutions) • Wireline NPS increased by +5.2pp YOY Achievements 2024 Focus 2025+ Results 2024 Disruptive energy offering • Successful start of Fastweb Energia with more than 60k subs • Future-home ecosystems with Energy/Telco convergence Strengthen quality of services Leverage wide fibre proprietary infrastructure and refocus main brands on quality Develop a strong multi-service bundled proposition Scale up energy business and launch new beyond core products (i.e., insurance) Improve loyalty and proximity Drive AI-driven tools for further churn prevention, enhanced customer service and one of the most extended retail chains in Italy • Accelerated value focus to stabilise fixed ARPU impacted RGU base • UBB penetration up to 88%, also thanks to extended FWA footprint 1) TRE PER TE is an all-inclusive bundle combining wireline, mobile and energy, 2) Fastweb B2C consists of all (acquired and activated) residential customers and small enterprises, Vodafone Italia B2C consists of activated (only) residential customers only, 3) Impacted by a technical reclassification of 11k customers in Q2 (from UBB to copper technologies), net of impact: +0.3% YOY (2’329k UBB lines), 4) Share of energy subscriptions with at least 1 Telco subscription 81% Q4 24 Energy/Telco convergence4 within Energia customer base, in % Energy service (QOQ) +60% Q4 revenue growth rate UBB penetration (-2.2%) 2’544 (+0.1%) 2’325 RGUs2 in k (Y OY) 91.4% (+2.1pp) Broadband UBB3 UBB penetration (-4.2%) 2'750 Broadband UBBRGUs2 in k (YoY) 88.1% (+1.7pp) (-2.4%) 2'422
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40 B2C W- Telco: deliver best mobile experience and FMC benefits Strategic priorities 2025 | 2. Stabilise B2C Telco top line and grow beyond core Reinforce superior service quality Capitalise on best mobile network, refocus main brands on delivering superior quality and safeguarding value on customer base Results 2024 Achievements 2024 Focus 2025+ 1) Mobile Number Portability platform, Increased MNP share of gross adds, 2) Fastweb B2C consists of residential customers and small enterprises, Vodafone Italia B2C consists of residential customers only, 3) 1’129k fixed- mobile-converged HHs out of total 2’544k BB connections Remarkable NPS • Improvement of +5.3pp YOY, driven by strong value propositions coupled with innovative and AI- supported services Leverage attractive brands Address no-frills customers with an effective multi-brand strategy leveraging brand ho. Growing mobile subs base • +421k new mobile subs in 2024: leveraging on convergence, attractive 5G offerings, and strategic new partnership (SKY Mobile powered by Fastweb) • Top MNP1 performance: #1 in 2H 2024 Broaden loyal customer base Bring convergence benefits to a wider customer base and leverage on AI for churn prevention and value management • Unchanged RGU pressure, focus on value sales improved on both brands • 2nd brand ho. with continuous growth: +145k subs (+4.6% YOY) Mobile service (QOQ) 3’930 (+12.0%) 44.4% (+1.9pp) 3x Mobile FMC3 RGUs2 in k (Y OY) +6% Q4 revenue growth rate #2 Fastweb MNP ranking #1 H1 2024 H2 2024 RGUs2 in k (Y OY)Mobile 2nd brand penetration 26.7% (+2.8pp) 12’425 (-6.2%)
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41 B2B Telco and IT: continue success story in ICT and VAS Strategic priorities 2025 | 3. Scale up B2B IT and Wholesale Strengthen NPS Focus on commercial excellence and custom-tailored offerings for large corporate Focus 2025+ Results 2024 Achievements 2024 Market share3B2B revenue2 in EUR mn (YOY) 1’249 (+10.1%) IT Telco 46% 54% Outstanding AI proposition • NeXXt AI Factory with offerings across the whole value chain and Italian LLM1 1) Large language model, 2) Fastweb B2B consists of corporate customers and medium enterprises, Vodafone Italia B2B consists of corporate customers, medium and small enterprises, 3) Telco and VAS for Top customers’ segment, Source: EY estimate for 2024, 4) Excluding IoT / M2M SIM cards, 5) MPN: Mobile Private Network Grow IT business Keep cloud and security momentum, improve ICT/VAS marginality and develop AI offerings. Push on IoT and MPN5 growing markets Manage Telco revenue streams Enhance differentiation with value and best salesforce in Enterprise and SOHOs/SMEs. Top line growth in Telco and IT • Superior connectivity quality leveraging fiber and 5G infrastructure • Security and cloud business further scaled up: FASTcloud, AWS, Cyber- security with 7Layers (ownership up to 100% by YE 2024) • Growing IT/VAS revenue share, primarily driven by cloud and cybersecurity • Strengthening position in mobile market thanks to TM9 contract, driving RGU growth in k (Y OY) Mobile RGUs4 3’843 (+9.9%) B2B revenue2 breakdown IT Telco 21% 79% +4pp +6pp Top new contracts 2024 Connectivity 5G Mobile ICT /Security 36.2% +0.9pp YOY
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42 Wholesale: 360° best-in-class both in fixed and mobile Strategic priorities 2025 | 3. Scale up B2B IT and Wholesale • Wholesale position consolidated by acquiring new customers leveraging on outstanding 5G mobile network in Italy • Signed and started onboarding of new CoopVoce contract Key customers Focus 2025+ Achievements 2024 Results 2024 +16% FY 23 FY 24 FY 23 +40% 336 390 FY 24 Wholesale revenue in EUR mn UBB lines in k 648 905 Lever key MVNOs Strengthen current market position through cross-selling and product innovation, and unlock full potential of current customers Sustain UBB growth Grow Wholesale access lines, both on existing customers and new entrants, driven by extended FTTH footprint Pursue commercial excellence Leverage AI and automation to drive a new paradigm of experience for wholesale and retail customers >900k sold UBB lines • +257k new UBB lines (+40% YOY), leveraging top-tier clients and attracting new ones (Edison) Stronger with partnerships • Convergent and high-quality propositions in white areas thanks to new FWA partnership with Eolo1 • Entry into submarine cable business in partnership with UNITIRRENO 1) While selling Fastweb's wholesale UBB services to Eolo Wholesale revenue in EUR bn (YOY) 0.3 stable
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43 Build #1 customer choice in Italy Wrap-up • Integrate two large companies successfully Form a joint high-performance organisation and shape a winning operating model based on two strong value sets and cultures • Fully capture synergy potential Confirmed run-rate synergies of EUR ~600mn p.a. by YE 2029, with clear path to deliver EUR >400mn by YE 2027 • Stabilise B2C Telco top line and grow beyond core Prioritise value base management, leverage dual-brand strategy, and grow with energy and other beyond core services • Scale up B2B IT and Wholesale business Foster cloud, security, IoT and MPN momentum, develop AI offering for enterprises and foster Wholesale UBB growth while leveraging key MVNO customers 2024 mid-term ambition Growing free cashflows
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44 Eugen Stermetz CFO Swisscom Financial results and guidance Rock-solid financials
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Top line and EBITDA in line with updated guidance 4545 Flattish Q4 thanks to Telco cost savings overcompensating Telco service revenue decline and extraordinary costs for IT projects Q4 flat thanks to strong indirect cost delivery compensating B2C decline 2024 affected by higher pension cost (due to lower IFRS discount rate, see appendix) Q4 change primarily impacted by costs related to closing in 2024 (CHF -197mn) and currency (CHF -19mn) CHF 4'552mn adjusted for costs related to closing in 2024 of CHF 197mn, o/w integration cost of CHF 167mn (segment Fastweb) and transaction cost of CHF 30mn for Vodafone Italia (segment Swisscom Switzerland) Q4 down due to Telco service revenue decline and lower IT service revenue Q4 with top line growth, mainly in B2B EBITDA in CHF mn 2 1 Swisscom Switzerland 11'036 (-0.3%) -36 FY 24 +48 -33 Revenue in CHF mn FY 23 Q1 Q2 Q3 Q4 Fastweb1 -4 +35+53 +4 +6 -31 -7+29 -12 -60 Currency3Other2 -44 11'072 -52 -45 -5 -141 21 +24 (+0.2%) Q1: -13, Q2: +55, Q3: -21; Q4: +3 +171 -6 -40 +54 -11 -10 -7 FY 23 4'622 -220 Swisscom Switzerland Fastweb1 Other2,4 FY 24 -15-41 43 5 Adjustments and currency3,4 +9 Adjusted -47 (-1.0%) Q1: -18, Q2: -8, Q3: -6, Q4: -15 4'355 4 5 -267 (-5.8%) 3 -19 -24 +4 +2 -3 +14 +9 -7 -9-2 +2 -6 -9 -15 -15 +4 Q1 Q2 Q3 Q4 +1 -20 -213 -228 Group revenue and EBITDA 1) At constant currency, 2) Includes other operating segments, pension reconciliation, intersegment elimination group level, 3) CHF/EUR exchange rate for FY 24: 0.9513 (vs. FY 23: 0.9727), 4) Swisscom Switzerland with regulatory litigations (Q2 23: CHF +10mn, Q4 23: CHF +54mn, Q1 24: CHF +24mn), transaction cost Vodafone Italia (Q1 24: CHF -6mn, Q2 24: CHF -7mn, Q3 24: CHF -5mn, Q4 24: CHF -42mn) and restructuring cost (Q4 24: CHF -13mn, Q4 23 CHF -6mn); Fastweb with integration cost for Vodafone Italia (Q4 24: CHF -167mn), FWA strategy change (Q4 23: CHF -60mn) and regulatory litigations (Q2 23: CHF -13mn); and currency effect (Q1 24: CHF -9mn, Q2 24: CHF -3mn, Q3 24: CHF -4mn, Q4 24: CHF -3mn), Other with restructuring cost (Q4 24: CHF -1mn, Q4 23 CHF -1mn) 4'552 6 7 6 7
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OpFCF adjusted lower due to lower EBITDA and higher CAPEX in Switzerland 4646 CAPEX in CHF mn OpFCF in CHF mn +57 2'292 2'312-14 1 Swisscom SwitzerlandFY 23 FY 24 Fastweb1 Currency3Other2 +35 +34 (+1.5%) Q1: +56, Q2: -3, Q3: +59, Q4: -78 (+0.9%)+5 -6 +20 Q1 Q2 Q3 Q4 +51 -7 +4 +6 +1 -2 -7 -2 -2 +61 -4 +2 +49 -5 -70 -1 -7 -3 1'752 -290 (-14.2%)+9 Adjusted -85 (-4.1%) Q1: -74, Q2: -8, Q3: -63, Q4: +60 -11-83 Swisscom Switzerland Fastweb1 Other2 Adjustments and currency3,4 FY 24 2'042 FY 23 -205 0 -2 -2 +13 +17 -5 +7 -6 -7 -57 -13 -70 +4 -16 -210 -150 -81 -72 -19 -64 Q1 Q2 Q3 Q4 +72 Group CAPEX and OpFCF YOY increased due to slightly higher investments in mobile core network and FTTH rollout acceleration in 2024, and one-time effect from the take-over of a data centre Quarterly fluctuations primarily driven by FTTH phasing: evenly spread this year vs. Q4-loaded in 2023 1 1) At constant currency, 2) Includes other operating segments, pension reconciliation, intersegment elimination group level, 3) CHF/EUR exchange rate for FY 24: 0.9513 (vs. FY 23: 0.9727), 4) Swisscom Switzerland with regulatory litigations (Q2 23: CHF +10mn, Q4 23: CHF +54mn, Q1 24: CHF +24mn), transaction cost Vodafone Italia (Q1 24: CHF -6mn, Q2 24: CHF -7mn, Q3 24: CHF -5mn, Q4 24: CHF -42mn) and restructuring cost (Q4 24: CHF -13mn, Q3 23 CHF -6mn); Fastweb with integration cost for Vodafone Italia (Q4 24: CHF -167mn), FWA strategy change (Q4 23: CHF -60mn), regulatory litigations (Q2 23: CHF -13mn); and currency effect (FY 24: CHF -4mn), Other with restructuring cost (Q4 24: CHF -1mn, Q4 23 CHF -1mn)
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EBITDA adjusted slightly lower 4747 Positive Q4 contribution thanks to indirect Telco cost savings (CHF +17mn) and lower SAC/SRC Q4 impacted by lower Telco service revenue and IT project reviews Q4 positive thanks to phasing effects from Telco cost saving initiatives in network and IT Q4 change primarily impacted by transaction costs (CHF -42mn, o/w costs related to closing in 2024 of CHF -30mn) and release of provisions for regulatory litigations in prior year (CHF +54mn) Revenue in CHF mn Q1 Q2 Q3 Q4 +24 FY 23 FY 24B2C B2B Wholesale ISF1 +6 8'147 8'006-133 (-3.0%) +2 -141 (-1.7%) 1 2 -16 -59 -19 +4 +3 -9 0 +1 -52 -4 -45-23 -15 -8 0 3 -40-32 -11 -2 +5 EBITDA in CHF mn -148 (-4.0%) FY 23 B2C B2B Wholesale ISF1 FY 24 4 5 3'561 Adjustments2 -107 +8 +1 +18 -17 -1 -41-5 +4 +4 -7 Adjusted -41 (-1.1%) Q1: -19, Q2: -24, Q3: -2, Q4: +4 +3 -69-10 3'709 -6 -4 -17-10 -11 -4 +35 -3 -7 Q1 Q2 Q3 Q4 +3 -35 +2 +34 -103 -99 6 Swisscom Switzerland revenue and EBITDA Q4 primarily affected by lower Telco service revenue (CHF -17mn) and lower hard- and software (CHF -17mn) Q4 lower primarily due to Telco service revenue (CHF -17mn), partially compensated by hard- and software. IT service revenue (CHF -6mn) impacted by project reviews Q4: higher revenues from access services compensated by lower inbound roaming 1 2 3 4 5 6 1) Infrastructure & Support Functions, including intersegment elimination, 2) Restructuring cost (Q4 23: CHF -6mn, Q4 24: CHF -13mn), regulatory litigations (Q2 23: CHF +10mn, Q4 23: CHF +54mn, Q1 24: CHF +24mn), transaction cost Vodafone Italia (Q1 24: CHF -6mn, Q2 24: CHF -7mn, Q3 24: CHF -5mn, Q4 24: CHF -42mn) 7 7
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48 B2C -61 IT service revenue B2B Other revenue categories2 Revenue FY 24 Direct costs Indirect Telco costs -51 +37 +70 -42 -41 Telco service revenue Indirect IT costs Adjusted EBITDA FY 24 42 -141 3 B2C -61 B2B -51 (-3.3%)(-1.6%) B2B +72 Revenue and adjusted EBITDA FY YOY, in CHF mn Telco service revenue YOY, in CHF mn 1 48 Strong delivery in Telco cost savings o/w Q4 -17 -17 -6 0 -40 +7 +49 -12 +4 -66 -5 -3 -6 -4 -17 -14 -13 -17 -12 -13 -17 -12 -13 -10 -11 -17 Q1 23 Q2 Q3 Q4 Q1 24 Q2 Q3 Q4 B2C B2B -17 -16 -24 (-2.5%) -23 -16 -30 -24 -112 (-2.1%) Swisscom Switzerland revenue and adjusted EBITDA changes -34 Q4 down due to brand mix effects, higher VAT and lower voice and broadband subs base, partially compensated by ARPU- stimulating measures Q4 affected by IT project reviews Substantial Telco cost savings in Q4 thanks to YE contributions from specific initiatives and phasing effects from running activities Slightly higher due to extra costs related to contractual liabilities for IT projects 1 2 3 4 1) CHF +7mn organic, CHF +30mn non-organic (Axept and Camptocamp), 2) Includes hard- and software revenue, wholesale revenue and other revenue (consists of cinema business and IFRS 15 reconciliation) -72 (-1.3%) RGU ARPU RGU ARPU RGU ARPU RGU ARPU t/o -20 fixed voice -20 BB -36 (-1.8%) -23 (-3.2%)-25 (-1.3%) -28 (-3.4%) Wireless Wireline Wireless Wireline t/o -35 brand mix -40-43 +18 +4 -11 -12 -9-19 t/o -17 brand mix 1
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YOY increased only due to slightly higher investments in mobile core network in 2024 Higher primarily due to FTTH rollout acceleration in 2024 (CHF +34mn YOY) and a one-time effect from the take-over of a data centre in western Switzerland to meet increased demand for colocation services 1 CAPEX in CHF mn OpFCF affected by lower EBITDA, higher investments and adjustments 49 49 EBITDA Lease expense EBITDAaL CAPEX YOY -148 3'561 3'329 1'604 -1'725-232 -7 -155 -35 -190 Q1 Q2 Q3 Q4 -1 -41 -3 -43 -54 -36 FY 24 Wireless network Wireline access network IT Backbone & infrastructure Other 268 714 118 504 121 YOY 1'725 +23 +57 -15 -5 -25 +35 21 +51 -7 Q1 Q2 Q3 Q4 FY 24 -51 +7 -7 -8 -61 -69 +61 -70 -99 -101 +70 -31 Swisscom Switzerland CAPEX and OpFCF 3 CHF -83mn YOY on an adjusted basis1 2 3 OpFCF in CHF mn 1) YOY adjusted = CHF -83mn (restructuring cost (Q4 23: CHF -6mn, Q4 24: CHF -13mn), regulatory litigations (Q2 23: CHF +10mn, Q4 23: CHF +54mn, Q1 24: CHF +24mn), transaction cost Vodafone Italia (Q1 24: CHF -6mn, Q2 24: CHF -7mn, Q3 24: CHF -5mn, Q4 24: CHF -42mn) t/o fibre 500
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Strong revenue growth, adjusted EBITDA development as expected 50 50 EBITDA in EUR mn Q4 YOY lower due to revenue mix change (higher mobile) Q4 positive driven by higher revenues of IT business, with lower marginality Q4 lower due to revenues mix (lower IRU with high marginality) Q4 up thanks to lower indirect cost primarily for FWA operations and energy Q4 change driven by costs related to closing in 2024 of EUR 176mn and FWA strategy change in prior year of EUR 61mn FY 23 FY 24B2C B2B Wholesale 1 2'633 2’809 1 2 3 +176 (+6.7%)+115 (+10.1%) +54 (+16.1%) -1 +23+29 +13+26 -1 +35+54 +11+17+3 Q1 Q2 Q3 Q4 +31+6 +7 (+0.6%) +46 +4 +56 FY 23 B2C B2B Wholesale ISF 2 FY 24 798 706+29-2-39 +22 -92 (-11.5%) 54 6 -3 -2 +8 +19 -3 -14 +2 -1 -102 Adjustments 3 0 +13 Adjusted +10 (+1.1%) Q1: +4, Q2: +2, Q3: +2, Q4: +2 +4 +15 -7 -2 +6 +5 0 +2 7 Q1 Q2 Q3 Q4 -15 -4 +16 -115 Q4 with ongoing growth in mobile (+421k subs in 2024) and energy services, mitigating competitive pressure in wireline Top line growth primarily thanks to IT business Q4 with growing UBB business (+257k sold access lines YOY on FY base) compensating lower IRU sales -113 Fastweb revenue and EBITDA 1 2 3 4 5 6 7 Revenue in EUR mn 1) Includes intersegment revenue, 2) Infrastructure and Support Functions, 3) Integration cost for Vodafone Italia (Q4 24: EUR -176mn), in prior year regulatory litigations (Q2 23: EUR -13mn) and FWA strategy change (Q4 23: EUR -61mn) 8 8 +5
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Lower expenditure due to changed FWA strategy, stopping rollout of a dedicated FWA network Increase in customer-driven CAPEX, e.g. • activation costs for new UBB wholesale customers • migration of B2C customers to FTTH (activation costs) OpFCF adjusted of EUR 204 million, YOY higher 51 51 CAPEX in EUR mn EBITDA Lease expense EBITDAaL CAPEX YOY 706 656 28 -50 Q1 Q2 Q3 Q4 +4 +15 +4 +17 -628 FY 24 -92 +5 -87 -5 -92 -4 -6 +4+3+2 Wireless network ITWireline access network Other 13 44 68 109 YOY 628 -23 0 -6 +33 +5 1 FY 24Backbone & infrastructure 394 +1 Q1 Q2 Q3 Q4 +4 +6 2 -4 -1 -113 -111 +1 EUR 204mn adjusted, EUR +10mn YOY on an adjusted basis1 Fastweb CAPEX and OpFCF 1 2 3 OpFCF in EUR mn 1) YOY adjusted by exceptionals = EUR +10mn (w/o integration cost for Vodafone Italia (Q4 2024: EUR -176mn), regulatory litigations (Q2 2023: EUR -13mn) and FWA strategy change (Q4 2023: EUR -61mn) +0 +11 +7 -110 204 3
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52 Another year with strong FCF generation 52 FY 24 1'752 1'437 +13 -297 -16 -10-5 Δ +146 +26 +16 -8 -43+67-290 OpFCF FCF Change in NWC Net interest paid Income taxes paid Other cash flows Change in defined benefit obligations -133 -77 -313 -8 -31 2'042 1'480 FY 23 1 2 Group free cash flow in CHF mn NWC positively impacted by integration cost for Vodafone Italia of CHF 167mn (no impact on FCF 2024). Decrease in payables of CHF -77mn and use of provisions of CHF -84mn with negative impact 2024 with lower net payments thanks to interest proceeds from short-term investments of fundings for Vodafone Italia acquisition. Expected net interest payments in 2025 of up to CHF 250mn, mainly due to the financing of Vodafone Italia (leading to incremental interest of CHF c. 200mn) 2 1
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Net income primarily impacted by closing-related costs Vodafone Italia 53 53 in CHF mn Financial income & financial expense, net Depreciation, amortisation PPE & intan- gible assets Net income non-control- ling interests Result of equity- accounted investees Income tax expense Depreciation of right of use assets Net income EBITDA EBIT Net income Swisscom equity holders 1'7111'711 tax rate 1 17.5% EPS 33.03 4’622 2'205-2'126 -291 -130 -364 00 FY 23 FY 24 1'542 4'355 1'951 1'541-2'143 -261 -2 -320 1 tax rate 1 17.2% EPS 29.77 -88 Δ -267 -17 +42-254 -2 +44 -170 +1 -169+30 Increase in interest income overcompensated increase in interest expense, as funds raised for Vodafone transaction were invested in financial assets until closing at YE 2024 Income tax expenses 2024 affected by lower EBT. Future (normalised) tax rate expected to be 18-19% Net income impacted by closing-related costs of CHF 197mn (before tax) 32 2 Group net income 1) Tax rate FY 24: tax expenses of CHF 320mn / EBT of CHF 1'861mn = 17.2%, tax rate FY 23: tax expenses of CHF 364mn / EBT of CHF 2'075mn = 17.5% 1 1 3
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54 Vodafone Italia: stable EBITDAaL and OpFCF despite Telco erosion in 2024 Vodafone Italia - selected financial and operational KPIs 2024 - preliminary pro forma Selected Financials Selected Operational KPIs RGUs, in k 31.12.20242 YOY Mobile 16'269 -2.9% B2C 12'425 -6.2% 2nd brand penetration 26.7% +2.8pp B2B 3'843 +9.9% RGUs, in k 31.12.20242 YOY Broadband 3'305 -3.6% B2C 2'750 -4.2% UBB penetration 88.1% +1.7pp B2B 555 -0.1% in EUR bn 20241 YOY trend Telco service revenue 3.4 -0.2 t/o Mobile 2.3 -0.2 t/o Fixed 1.2 stable IT service revenue 0.4 +0.1 Wholesale revenue 0.3 stable Total service revenue 4.1 -0.1 Other revenue 0.5 stable Revenue 4.6 -0.1 OPEX -3.5 +0.1 t/o lease expense -1.0 stable EBITDAaL 1.0 stable CAPEX adjusted -0.7 stable OpFCF adjusted 0.3 stable 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) EBITDAaL excludes cost related to discontinued services from Vodafone group. CAPEX adjusted for additional EUR c. 70mn for tower consolidation on INWIT network, in connection with INWIT agreement to be reimbursed by Vodafone group as part of the purchase price adjustment, 2) Preliminary pro forma KPIs as per 31.12. 2024. Vodafone RGUs restated in line with Fastweb reporting (treating FWA as broadband RGU)
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Swisscom Group excluding Vodafone Italia Key financials 2024 55 Italy with EUR 1.8bn EBITDAaL and EUR 0.5bn OpFCF in 2024 4.6 0.7 7.3 1.8 0.5 1.4 2.8 0.6 11.0Revenue 4.1EBITDAaL1 OpFCF2 2.3CAPEX 8.0 1.7 15.3 5.2 2.2 3.0 8.0 3.4 1.7 1.7 4.3 1.8 2.0 3.3 3.4 1.6 1.7 0.0 0.2 0.7 0.8 0.3 reported adjusted reported adjusted reported adjusted 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) EBITDAaL = EBITDA minus lease expenses, 2) OpFCF = EBITDAaL minus CAPEX, 3) EBITDAaL excludes cost related to discontinued services from Vodafone group. CAPEX adjusted for additional EUR c. 70mn for tower consolidation on INWIT network, in connection with INWIT agreement to be reimbursed by Vodafone group as part of the purchase price adjustment, 4) Revenue includes intercompany consolidation between Fastweb and Vodafone Italia with an impact of EUR -0.1bn, minor impact on EBITDAaL and no impact on OpFCF. For consolidation purposes CHF/EUR of 0.9513 has been used for FY 2024, 5) Segment naming changed: Switzerland = new segment naming for Swisscom Switzerland, Italy = new segment naming for Fastweb and Vodafone Italia Reconciliation financials 2024 Swisscom Group including Vodafone Italia Key financials FY 2024 Italy5 EUR bn preliminary pro forma4 Switzerland5 CHF bn Group CHF bn preliminary pro forma4 Group CHF bn Swisscom Switzerland CHF bn Fastweb EUR bn Vodafone Italia EUR bn preliminary pro forma3 1.0 adjusted adjusted adjusted adjusted adjusted adjusted adjusted adjustedadjustedadjusted 5
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2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2039 2044 2053 Bonds & private placements Bank loans 58% 42% 86% 14% Pro forma leverage 2.4x, top rating, conservative financing 56 Debt facts fixed Debt mix floating CHF EUR Credit lines • CHF 2.9bn (unused) committed credit lines (CHF +0.7bn) • Ø interest rate of 1.79% Incremental transaction-caused interest expenses of CHF ~200mn p.a. • Ø duration of 5.4 years financial liabilities financial & lease liabilities Currency mixRate mix Debt portfolio facts 2 1 Purchase price paid (Enterprise Value EUR 8.0bn) and recognition of lease liabilities Vodafone Italia Including impact of sale of 4.5% stake in FiberCop Additional lease liabilities expected due to harmonisation of subscriber lines accounting policies Preliminary pro forma EBITDA 2024 of CHF 6.6bn (CHF 5.0bn EBITDAaL5 + CHF 1.6bn lease expense6) 7.1 7.4 1.7 -1.4 1.1 -0.3 15.6 0.3 15.9 Net debt YE 23 VOD Italia purchase price Δ lease liabilities FCF Dividend payment Other Net debt YE 24 reported Restate- ment Net debt YE 24 pro forma 1.5x 2.4x 2 Leverage1 Transaction impact 3 1 2 3 Maturity profile (as per 31 Dec 2024 in CHF mn) Ratings update as per 8 Jan 2025 A- (outlook stable) A2 (outlook stable) Leverage preliminary pro forma4 4 546 1'154 1'860 1'412 1'500 465 1'426 300 330 400 1'026 941 375 831 50 Net debt and leverage CHF 15.9bn / CHF 6.6bn Net debt and leverage development (in CHF bn) 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) Net debt (incl. lease liabilities) / EBITDA, 2) Purchase price Vodafone Italia includes preliminary net debt and NWC adjustment as per share purchase agreement, 3) CHF 1.5bn related to lease of wireless infrastructure, 4) Calculated as preliminary pro forma net debt YE 2024 divided by preliminary pro forma EBITDA of CHF 6.6bn (including preliminary pro forma EBITDA for Vodafone Italia of EUR 2.0bn), 5) Preliminary pro forma EBITDAaL adjusted 2024 of CH 5.2bn includes adjustments of CHF 0.2 bn, 6) Preliminary pro forma lease expense of CHF 1.6 bn includes reported lease expense 2024 of CHF 0.3bn, lease expense Vodafone Italia of EUR 1.0bn and additional lease expense Fastweb due to harmonisation of subscriber lines accounting policies EUR 0.4bn +8.8 4 Financial debt: CHF 12.0bn Lease liabilities: CHF 3.9bn 3 +8.5
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Stability in Switzerland, transition year in Italy 57 Preliminary guidance 2025 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) Revenue includes intercompany consolidation between Fastweb and Vodafone Italia with a revenue impact of EUR -0.1bn, minor impact on EBITDAaL and no impact on OpFCF. For consolidation purposes CHF/EUR of 0.9513 has been used for FY 2024, 2) Switzerland = new segment naming for Swisscom Switzerland, Italy = new segment naming for Fastweb and Vodafone Italia, 3) Leverage = net debt (incl. lease liabilities) / EBITDA, 4) Guidance 2025 to be updated with Q1 25 results publication on 8 May 2025, based, inter alia, on completed harmonisation of accounting policies, reporting and consolidation as well as advanced purchase price allocation (PPA), 5) Group consists of segments Switzerland, Italy and Other (not shown). For consolidation purposes, CHF/EUR of 0.9300 has been used (vs. 0.9513 for FY 2024), 6) Group EBITDAaL guidance 2025 includes expected lease expense of CHF ~1.6bn, 7) CAPEX adjustments for tower consolidation on INWIT network, in connection with INWIT agreement to be reimbursed by Vodafone group as part of the purchase price adjustment, 8) Dividend paid in t+1 (for fiscal year 2024 on 1 April 2025, for fiscal year 2025 in March/April 2026), 9) Upon meeting 2025 guidance, Swisscom plans to propose a dividend of CHF 26/share (payable in 2026) 11.0 4.1 2.3 1.8 7.3 1.8 0.5 1.4 15.3 5.2 2.2 3.0 8.0 3.4 1.7 1.7 Financials FY 2024 Group CHF bn reported Group CHF bn preliminary pro forma1 Italy2 EUR bn preliminary pro forma1 Switzerland2 CHF bn Revenue EBITDAaL OpFCF CAPEX 2.4xLeverage3 ~7.3 1.6-1.7 0.1-0.2 1.5-1.6 15.0-15.2 ~5.0 1.8-1.9 3.1-3.2 7.9-8.0 3.3-3.4 ~1.7 ~1.7 Preliminary guidance FY 2025 Group5 CHF bn Italy EUR bn Switzerland CHF bn Revenue EBITDAaL6 OpFCF CAPEX ~2.4x 4 Leverage stable adjusted adjusted adjusted adjusted adjusted adjusted adjusted adjusted 22Dividend in CHF/share8 26Dividend in CHF/share9 ~0.4 adjusted Incl. EUR c. 50mn integration cost Incl. EUR c. 150mn integration cost and EUR c. 50mn adjustments Incl. EUR c. 200mn integration cost and EUR c. 50mn CAPEX adjustments 7
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~2.4x ~2.5x ~2.3x ~2.1x ~1.9x5 YE 2024 preliminary pro forma YE 2025 YE 2026 YE 2027 YE 2028 YE 2029 Dividend ambition - indicative 58 Growing dividend and a strong balance sheet Rock-solid financials Dividend outlook (confirmed) (in CHF) +1 +1 +1 22 26 2025 2026 2027 2028 2029 Leverage outlook (new) (Net debt (incl. lease liabilities)/EBITDA) Payout year1 +4Long-term value creation • Stable free cashflows from Swiss business • Growing free cashflows from synergies in Italy Attractive dividend • High pay-out ratio • Dividend covered by free cashflows • Dividend growth in line with free cashflow evolution Strong balance sheet • Target leverage <2.4x • Target rating A Deleveraging ambition- indicative 2.4x Actual Guidance stable Ambition -0.2x -0.2x-0.2x+0.1x 4 Leverage and dividend outlook 'Pro forma': LTM (Jan-Dec 24) figures as if Vodafone Italia consolidated from 1 Jan 2024, restated (harmonisation of accounting policies and reporting) and unaudited. 'Preliminary': restatement and consolidation ongoing, to be finalised by 21 March 2025. 1) Dividend paid in t (for fiscal year t-1), 2) Percentage of free cashflow of fiscal year t-1 being paid out as dividend in t, 3) Upon meeting its targets, Swisscom plans to propose a dividend of CHF 26/share (payable in 2026), 4) Includes estimated increase in lease liability of EUR ~2.1bn compared to previous year due to assumed renewal of Tower MSA agreement with INWIT in 2026, 5) Excluding cost for spectrum licences in Italy expiring in 2029 3 Payout ratio2 ~100% <100% <100% <100%
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59 Christoph Aeschlimann CEO Swisscom Closing remarks Wrap-up
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Long-term value focus • Consistent story and proven strategy • Trusted leader in digital life and business • A pioneer in sustainability • Rock-solid financials • Invest consequently in networks and IT • Innovate for growth in promising areas • Drive digitalisation and AI to the next level Future-proof investments #1 position in Switzerland • Continuing leadership in Telco and IT business • Grow beyond core • Deliver stable cash flows #1 customer choice in Italy • A leading converged challenger • Well-balanced market position • Generate growing cash flows • Reliable dividend of CHF 22 (>4% return) since 2011 • From 2026 higher dividend expected, in line with FCF evolution Attractive return # 1 60 Strong today, stronger tomorrow Wrap-up
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Appendix 61
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62 Group - adjusted key financials in CHF mn 1) CHF/EUR exchange rate for Q1 24 of 0.9478, for H1 24 of 0.9593, for 9M 24 of 0.9554 and for 12M 24 of 0.9513 (vs. 0.9950 for Q1 23, 0.9879 for H1 23, 0.9802 for 9M 23 and 0.9727 for 12M 23) 2023 2024 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Revenue 2'747 2'703 2'752 2'870 11'072 2'703 2'751 2'719 2'863 11'036 -44 +48 -33 -7 -36 Currency effect 1 31 7 12 10 60 +31 +7 +12 +10 +60 At constant currency -13 +55 -21 +3 +24 EBITDA 1'164 1'139 1'174 1'145 4'622 1'155 1'124 1'159 917 4'355 -9 -15 -15 -228 -267 Regulatory litigations 3 -54 -51 -24 -24 -24 -3 +54 +27 Transaction cost Vodafone Italia 6 7 5 42 60 +6 +7 +5 +42 +60 Restructuring cost 7 7 14 14 +7 +7 FWA strategy change 60 60 0 -60 -60 Integration cost Italy 167 167 +167 +167 Adjustments 3 13 16 -18 7 5 223 217 -18 +4 +5 +210 +201 EBITDA adjusted 1'164 1'142 1'174 1'158 4'638 1'137 1'131 1'164 1'140 4'572 -27 -11 -10 -18 -66 Currency effect 1 9 3 4 3 19 +9 +3 +4 +3 +19 At constant currency -18 -8 -6 -15 -47 EBITDAaL 1'091 1'069 1'100 1'074 4'334 1'083 1'051 1'087 843 4'064 -8 -18 -13 -231 -270 Adjustments (same as in EBITDA) 3 13 16 -18 7 5 223 217 -18 +4 +5 +210 +201 EBITDAaL adjusted 1'091 1'072 1'100 1'087 4'350 1'065 1'058 1'092 1'066 4'281 -26 -14 -8 -21 -69 Currency effect 1 8 0 0 3 18 +8 +0 +0 +3 +18 At constant currency -18 -14 -8 -18 -51 OpFCF 546 501 583 412 2'042 489 488 513 262 1'752 -57 -13 -70 -150 -290 Adjustments (same as in EBITDA) 3 13 16 -18 7 5 223 217 -18 +4 +5 +210 +201 OpFCF adjusted 546 504 583 425 2'058 471 495 518 485 1'969 -75 -9 -65 +60 -89 Currency effect 1 1 1 2 0 4 +1 +1 +2 +0 +4 At constant currency -74 -8 -63 +60 -85 Appendix
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63 Swisscom Switzerland - adjusted key financials in CHF mn 2023 2024 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EBITDA 945 915 913 936 3'709 944 874 906 837 3'561 -1 -41 -7 -99 -148 Regulatory litigations -10 -54 -64 -24 -24 -24 +10 +54 +40 Transaction cost Vodafone Italia 6 7 5 42 60 +6 +7 +5 +42 +60 Restructuring cost 6 6 13 13 +7 +7 Adjustments -10 -48 -58 -18 7 5 55 49 -18 +17 +5 +103 +107 EBITDA adjusted 945 905 913 888 3'651 926 881 911 892 3'610 -19 -24 -2 +4 -41 EBITDAaL 889 860 855 880 3'484 886 817 847 779 3'329 -3 -43 -8 -101 -155 Adjustments (same as in EBITDA) -10 -48 -58 -18 7 5 55 49 -18 +17 +5 +103 +107 EBITDAaL adjusted 889 850 855 832 3'426 868 824 852 834 3'378 -21 -26 -3 +2 -48 OpFCF 495 433 479 387 1'794 441 397 410 356 1'604 -54 -36 -69 -31 -190 Adjustments (same as in EBITDA) -10 -48 -58 -18 7 5 55 49 -18 +17 +5 +103 +107 OpFCF adjusted 495 423 479 339 1'736 423 404 415 411 1'653 -72 -19 -64 +72 -83 Appendix
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64 Fastweb - adjusted key financials 2023 2024 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EBITDA 188 210 229 171 798 192 225 231 58 706 +4 +15 +2 -113 -92 Regulatory litigations 13 13 -13 -13 FWA strategy change 61 61 -61 -61 Integration cost Italy 176 176 +176 +176 Adjustments 13 61 74 176 176 -13 +115 +102 EBITDA adjusted 188 223 229 232 872 192 225 231 234 882 +4 +2 +2 +2 +10 EBITDAaL 175 196 215 157 743 179 213 218 46 656 +4 +17 +3 -111 -87 Adjustments (same as in EBITDA) 0 13 0 61 74 176 176 -13 +115 +102 EBITDAaL adjusted 175 209 215 218 817 179 213 218 222 832 +4 +4 +3 +4 +15 OpFCF 22 52 67 -21 120 22 63 74 -131 28 +0 +11 +7 -110 -92 Adjustments (same as in EBITDA) 13 61 74 176 176 -13 +115 +102 OpFCF adjusted 22 65 67 40 194 22 63 74 45 204 +0 -2 +7 +5 +10 in EUR mn Appendix
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65 Residential Customers - figures as per YE 2024 FY revenue decreased due to softer Telco service revenue and lower hardware sales (mainly in Q1 and Q4). Telco service revenue weaker (FY CHF -61mn, -1.6%) due to higher VAT (CHF -15mn), lower wireline subs base and brand mix. FY EBITDA decreased by CHF -10mn, -0.3%: decrease in Telco service revenue mostly compensated by Telco cost savings (indirect cost CHF +40mn and lower SAC/SRC). Appendix in MCHF Q4 2024 Q4/Q4 31.12.2024 YOY Revenue 1) 1'125 -2.8% 4'372 -3.0% Direct costs -229 -7.7% -791 -9.5% Indirect costs 2) -148 -10.3% -584 -6.4% EBITDA 748 0.4% 2'997 -0.3% EBITDA as % of revenue 66.5% 68.5% Lease expense -10 -9.1% -40 -2.4% EBITDAaL 738 0.5% 2'957 -0.3% CAPEX -14 -36.4% -37 -24.5% OpFCF proxy 724 1.7% 2'920 0.1% Number of employees (FTE) -48 2'423 -5.0% Postpaid subs (k) +33 3'449 2.0% Prepaid subs (k) +9 871 -6.0% Wireless subs (k) +42 4'320 0.3% ARPU wireless in CHF 35 -2.8% 35 -2.8% Broadband subs (k) -2 1'695 -1.5% TV subs (k) -5 1'431 -2.8% Fixed voice subs (k) -18 933 -7.4% 1) incl. intersegment revenues 2) incl. own work capitalised and other income
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34% 51% 49% 11% 67% 89 90 3’380 3'449 Residential Customers - operational KPIs as per YE 2024 Wireless Wireline RGUs in k Churn rates p.a. ARPUs in CHF (YOY) RGUs in k Churn rates p.a. ARPUs in CHF (YOY) 3 1 Penetration rates Postpaid value (YOY, pp) Penetration rates Broadband (YOY, pp) 2 66 (+1) Postpaid Q4 24 Postpaid value W- blended W+ blended W+ bundleBroadband FMC 2nd/3rd brand blue FMC HH (+1) (0)(+3) 2nd/3rd brand blue FMC HH 80% (-1) (+2) Broadband TV Postpaid Value Q4 23 Q4 24Q4 23 1) FMC share of postpaid value HHs (1'134k converged HHs, out of total HHs (2'337k, all brands) with at least 1 postpaid value subscription), 2) FMC share of BB HHs (1'134k converged HHs, out of total BB connections (1'695k, all brands), 3) own brand bundle (BB + TV + fixed voice) Appendix 7.7% 7.9% 36 35 50 48 40 40 6.6% 6.3% 8.3% 8.3% 1'721 1’695 1'472 1’431
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67 Business Customers - figures as per YE 2024 FY revenue increased (+0.4%). Lower Telco service revenue (CHF -51mn) compensated by low-margin IT service revenue (CHF +37mn) and hardware and software sales (CHF +21mn). FY EBITDA decreased (-5.1%) driven by lower Telco service revenue and slightly lower profitability in IT business. Appendix in MCHF Q4 2024 Q4/Q4 31.12.2024 YOY Revenue 1) 786 -0.5% 3'096 0.4% Direct costs -211 10.5% -745 5.2% Indirect costs 2) -275 4.2% -1'075 4.4% EBITDA 300 -10.4% 1'276 -5.1% EBITDA as % of revenue 38.2% 41.2% Lease expense -8 0.0% -30 0.0% EBITDAaL 292 -10.7% 1'246 -5.2% CAPEX -8 -52.9% -39 -33.9% OpFCF proxy 284 -8.4% 1'207 -3.9% Number of employees (FTE) -4 5'544 1.8% Wireless subs (k) +10 2'011 2.1% ARPU wireless in CHF 25 -7.4% 26 -3.7% Broadband subs (k) -4 272 -4.6% TV subs (k) -1 62 -4.6% Fixed voice subs (k) -4 204 -6.4% 1) incl. intersegment revenues 2) incl. own work capitalised and other income
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68 Wholesale - figures as per YE 2024 FY revenue weaker (-3.1%), primarily due to inbound roaming. FY EBITDA down (-10.5%). EBITDA change impacted by releases of regulatory provisions in current year and prior year (Q2 23: CHF +10mn, Q4 23: CHF +32mn, Q1 24: CHF +5mn). On an adjusted basis, FY EBITDA roughly stable (+1.1%) as lower outpayments compensated lower inbound roaming revenue. Appendix in MCHF Q4 2024 Q4/Q4 31.12.2024 YOY Revenue 1) 129 -0.8% 524 -3.1% Direct costs -51 0.0% -222 -7.1% Indirect costs 2) -2 -107.4% -11 -147.8% EBITDA 76 -28.3% 291 -10.5% EBITDA as % of revenue 58.9% 55.5% Lease expense - - EBITDAaL 76 -28.3% 291 -10.5% CAPEX - - OpFCF proxy 76 291 -10.5% Number of employees (FTE) +0 80 -3.6% Wholesale lines (k) +9 731 5.6% 1) incl. intersegment revenues 2) incl. own work capitalised and other income
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69 Broadband Connectivity Service • Swiss-wide broadband access, 2 Mbps to 10 Gbps, asymmetric and symmetric Direct Internet Access • Fully managed layer-3 service, 10 Mbps to 1 Gbps asymmetric and symmetric Carrier Ethernet Service Basic und Premium • Layer-2 service for low-cost and flexible Ethernet connections, 2 Mbps to 10 Gbps symmetric Carrier Line Service Basic und Premium • Dedicated high-quality Point-to-Point Data Transmission, 2 Mbps to 100 Gbps symmetric Unbundled Line (TAL) Access Line Optical (ALO) • Layer-1 line rental TAL (copper) ALO (fibre) BBCS (copper & fibre) DIA (copper & fibre) CLS CES Access lines Carrier lines Monthly prices / access line Broadband Connectivity Service BBCS, Layer-3, 100 Mbps CHF 19 Broadband Connectivity Service BBCS, Layer-3, 500 Mbps CHF 26 Broadband Connectivity Service BBCS, Layer-3, 1 Gbps CHF 32 Broadband Connectivity Service BBCS, Layer-3, 10 Gbps CHF 33 Unbundled Access Line TAL, layer-1, copper CHF 14.80 Access Line Optical ALO, layer-1, fibre CHF 24 Appendix Wholesale– overviewof offerings
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70 Infrastructure & Support Functions - figures as per YE 2024 Negative EBITDA (costs not charged to other segments) increased (3.4%). Adjusted by the regulatory litigations (release of CHF +19mn in Q1 24 release of CHF 22mn), transaction cost Vodafone Italia CHF -60mn, most in Q4 24) and restructuring cost (CHF 13mn in Q4 24, CHF 6mn in Q4 23), EBITDA improved by 3.8% to an EBITDA adjusted of CHF 948mn. Improvement was driven by cost efficiency measures and decommissioning of legacy systems. Appendix in MCHF Q4 2024 Q4/Q4 31.12.2024 YOY Revenue 1) 18 12.5% 75 2.7% Direct costs - - -1 - Indirect costs 2) -304 14.3% -1'076 3.3% EBITDA -286 14.4% -1'002 3.4% Lease expense -41 7.9% -162 5.2% EBITDAaL -327 13.5% -1'164 3.7% CAPEX -400 -11.9% -1'648 4.2% OpFCF proxy -727 -2.0% -2'812 4.0% Number of employees (FTE) -29 5'272 1.7% 1) incl. intersegment revenues 2) incl. own work capitalised and other income
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71 Swisscom Switzerland - overview of mobile spectrum licences and use 3G 3G 120 85 60 60 50 30 20 30 100 50 20 40 15 30 20 20 80 40 40 50 10 20 20 2,1 GHz 2,6 GHz 3,5 GHz 1,8 GHz 800 MHz 10 1,4 GHz 900 MHz 700 MHz Spectrum licenses until 2028* or 2034** (in MHz) Spectrum use by Swisscom in 2025 5G 5G+ 5G 5G 4G 4G 4G 4G 4G 4G 4G 4G DSS1 DSS1 900 MHz 2,1 GHz 3,5 GHz 2,6 GHz 1,8 GHz 1,4 GHz 800 MHz 700 MHz ** ** * ** * * * * 1) DSS: dynamic spectrum sharing Appendix
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72 Fastweb - figures as per YE 2024 Residential customers revenue almost on prior year level (+0.6%). Decrease in wireline compensated by higher mobile customer base. Business customers revenue up by +10.1% due to increasing IT service revenue. Wholesale revenue increased (+16.1%) as well, driven by higher number of wholesale lines (+39.7%). EBITDA of prior year impacted by a provision for regulatory litigations (EUR 13mn) and cost due to strategy change regarding fixed wireless access services (EUR 61mn). Reported EBITDA 2024 impacted by integration cost (EUR 176mn). Adjusted EBITDA up by +1.1%. Appendix in MEUR Q4 2024 Q4/Q4 31.12.2024 YOY Residential customers 300 2.0% 1'170 0.6% Business customers 366 14.4% 1'249 10.1% Wholesale 1) 112 3.7% 390 16.1% Revenue 1) 778 7.8% 2'809 6.7% Direct costs -396 20.0% -1'392 14.4% Indirect costs 2) -324 46.6% -711 15.0% EBITDA 58 -66.1% 706 -11.5% EBITDA as % of revenue 7.5% 25.1% Lease expense -12 -14.3% -50 -9.1% EBITDAaL 46 -70.7% 656 -11.7% CAPEX -177 -0.6% -628 0.8% OpFCF proxy -131 523.8% 28 -76.7% Number of employees (FTE) +33 3'299 4.5% Wireless subs (k) +114 3'930 12.0% Broadband subs (k) -4 2'544 -2.2% Wholesale lines (k) +73 905 39.7% In consolidated Swisscom accounts EBITDA in MCHF 52 -67.9% 671 -13.5% CAPEX in MCHF -166 -2.4% -597 -1.5% 1) incl. intersegment revenues 2) incl. own work capitalised and other income
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73 Other - figures as per YE 2024 Revenue up by +4.5% thanks to higher revenue at cablex. EBITDA up by +1.4% due to higher revenue. Appendix in MCHF Q4 2024 Q4/Q4 31.12.2024 YOY External revenue 111 -5.1% 427 0.0% Revenue 1) 291 -3.6% 1'111 4.5% Direct costs -23 4.5% -79 -3.7% Indirect costs 2) -233 2.2% -885 5.9% EBITDA 35 -32.7% 147 1.4% EBITDA as % of revenue 12.0% 13.2% Lease expense -3 0.0% -11 0.0% EBITDAaL 32 -34.7% 136 1.5% CAPEX -11 -8.3% -39 -2.5% OpFCF proxy 21 -43.2% 97 3.2% Number of employees (FTE) -45 3'269 -1.2% 1) incl. intersegment revenues 2) incl. own work capitalised and other income
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74 Pension cost and cash payments • Costs highly sensitive to changes of discount rate • Operating pension cost for FY 25 expected to be CHF +36mn (t/o CHF +33mn pension reconciliation) higher compared to FY 24 because of lower discount rate • Cash contributions not based on IFRS • No impact of interest rate on cash contributions • Company contributions (in cash) 2024 slightly lower due to a one-time release and use of employer reserve in H2 24 Operating pension cost Cash payments reported estimate estimate in CHF mn 12M 23 12M 24 YOY FY 24 FY 25 YOY Segments' pension cost 273 277 4 277 280 3 Pension reconciliation -37 -25 12 -25 8 33 Operating pension cost (EBITDA) 236 252 16 252 288 36 Net interest (financial result) -5 -3 2 -3 -5 -2 Total pension cost (P&L) 231 249 18 249 283 34 Company contributions (cash payments) 267 258 -9 258 273 15 Pension cost (EBITDA) less cash payments -31 -6 25 -6 15 21 1 1) For FTEs in Switzerland, consisting of segments 'Swisscom Switzerland' and 'Other' Appendix
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75 CAPEX breakdown Swisscom Switzerland Fastweb Wireless network Wireline access network Backbone & infrastructure1 IT Other • Access network: upgrade and modernisation of existing sites, building of new antenna sites • Core network • Wireline core and transport network • Central offices and data centres • Hardware and licences • Software development • Customer- and project-driven (e.g. router) • Others: shops, SIMAG, local.ch, etc. CHF 268mn CHF 714mn CHF 118mn CHF 504mn CHF 121mn EUR 13mn EUR 44mn EUR 68mn EUR 109mn EUR 394mn • Core network incl. capacity increase • Access network, most of it realised with fibre • Capacity increase (e.g. expansion feeder, replacement ducts) as well as new access (e.g. to new buildings) • Customer- and project-driven (e.g. modem & routers, dedicated fibre link, customer activations cost2) FY 2024 FY 2024 1) Without IT components, newly part of cluster IT, 2) Activation costs of systems integrator and other licenced operators Appendix
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1 2 2 2 22 Unchanged ambition to reduce leverage 76 New leverage outlook Deleveraging - indicative -0.2x -0.2x -0.2x Changes vs transaction assumptions at signing Leverage outlook at signing Aligned lease accounting policies – classification of all types of subscriber lines (active and passive) as leases. Under the previous Swisscom policy, passive lines were classified as leases and active lines as service • No change for Vodafone Italia • Restatement for Fastweb was only partially included at signing EUR ~ 300mn Earlier booking of integration costs (due to closing in Q4): EUR 176mn (t/o EUR 72mn non-cash) already booked in 2024 instead of 2025 Δ leverage YE 2025 -0.1x -0.1x Integration cost 24 (one-time) IFRS 16 effect (recurring) Lease expense EBITDA EBITDAaL Net Debt 1 2 Δ leverage YE 2025+ EUR +176mn Δ vs signing ~2.4x ~2.5x ~2.3x ~2.1x ~1.9x YE 2025 YE 2026 YE 2027 YE 2028 YE 2029 Deleveraging - indicative Guidance Ambition -0.2x -0.2x-0.2x+0.1x Appendix Lease expense EBITDA EBITDAaL Net Debt Δ vs signing 1) Excluding cost for spectrum licences in Italy expiring in 2029 1 Leverage outlook (new) (Net debt (incl. lease liabilities)/EBITDA) 1.5x 1.1x 2.6x 2.6x ~2.4x ~2.2x ~2.0x Swisscom Group stand-alone leverage Transaction impact Swisscom Group YE 2025 pro forma YE 2026 YE 2027 YE 2028 YE 2029 = = =
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77 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 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, Fastweb’s and Vodafone Italia's (Fastweb + Vodafone) 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."
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Louis Schmid Head Investor Relations louis.schmid@swisscom.com +41 58 221 62 79 Anastasia Henkel Investor Relations Manager anastasia.henkel@swisscom.com +41 58 221 40 80 Investor contact