Swisscom interim results 2009 Q2 = “Q Too” : a ......Swisscom interim results 2009 ... Q1 07 Q2...

Swisscom interim results 2009

Q2 = “Q Too”

: a continuation from Q1

12 August 2009

2

AgendaIntroduction

Slide

Bart Morselt, Head of IR

a)

Q2 = “Q Too”


b)

Revenue dynamics, price & volume vs structural & cyclical

c)

Cost control, progress made

d)

EBITDA conversion through cost control

e)

H1 cockpit, key results

f)

H1 2009 results:1.

Segments2.

Group

g)

Outlook 2009

Q&A

3

4

6

8

9

13

24

Carsten Schloter, CEO Swisscom

Ueli Dietiker, CFO Swisscom

All

3

a) Q2= “Q Too“ : a continuation from Q1

2'700

2'800

2'900

3'000

3'100

Q1 2008 Q1 2009 Q2 2008 Q2 2009

-0.6%yoy

-1.9%yoy

+2.9%QoQ

300

350

400

450

500

550

Q1 2008 Q1 2009 Q2 2008 Q2 2009

+14.1%yoy

+27.3%yoy

+10.5%QoQ

Topline again down YoY, however up

sequentially

Bottomline again up YoY, and also sequentially

CHF mm

CHF mm

Gro

up r

even

ues

Gro

up n

et p

rofi

t

4

b) Revenue dynamics, H1 2009 compared to H1 2008 (excl. FWB)st

ruct

ural

cycl

ical

Price (P) Volume (Q) Q one-off

* Broadband revenue growth newly divided into price and volume effects. In earlier presentations broadband was shown net.

Σ-149mm

Price erosion wireline & wireless Airbites CEE

-4

Broadcast, events

Usage/volume growth

wireline & wireless

+95

Roaming -4 inbound

-6 outbound

Hospitality Services

Pillar “Maximize”

Pillar “Extend”

Pillar “Expand”

-44+93-198

-37

-112IT Services

phase out banking platform

-22

IT Services cyclical

Σ

- 85

Σ

-

149 Total w.o. Fastweb

IT Services operations

Fastweb in CHF+164

Total in CHF Σ

+ 15

-89

Σ

-74 CHF mm of H1 revenues decline YoY as reported for the Group

-12 -18

-10-3

-16 -8

+16

IPTV

FX impact Fastweb

Translated into Swisscom’s 3-pillar strategy:-186

(i.e. 186mm lower revenues in H1 2009 compared to H1 2008 due to structural price erosion of traditional telephony services)

Handsetsesp. iPhone

Σ

Σ

Σ

- 52

Σ

- 12

Projects

large accounts

-105

local.ch

+11

+8

* *

5

cycl

ical

Price

b) Revenues sequentiallyTo

tal

Trend in Q2 accelerating

Trend in Q2 accelerating

-1-8 -8

-29

Q1/Q1: -117

H1/H1 H1/H1

-198 +93 (+49)Q1/Q1: +72

Q2/Q2: -

81 Q2/Q2: +21

Total impact on sales

-50

-40

-30

-20

-10

0

10

Trend in Q2accelerating

(on low absolute level)

-9

-37

+

Cycl

ical

impa

ctin

crea

sing+ =

= =Q1/Q1: -45 -105 (-149)Q2/Q2: -60 H1/H1

stru

ctur

al

-190Trend in Q2 slowing

-116 +

Q1/Q1 H1/H1

Volume/incl. one-off

+78

+122

H1/H1

+-200

-150

-100

-50

0

50

100

150

-36 -68

-112-52

Q1/Q1 H1/H1

Trend stabilising

=

=

Trend in Q2 slowing

+80

+64

Q1/Q1

+

Minimal acceleration of revenue decline in Q2, driven only by lower volumes from (temporary) cyclical impact

Stru

ctur

al im

pact

st

able

Less PRICE erosion in Q2 Less VOLUME growth in Q2

+ =

=

+

Small acceleration of revenue decline in Q2 (< 1% of sales)

-15

6

1'933

- - 1'833 -- -

-- - 1'823

+45

+12

-91

-9-2 -14 -27

-24

Indirectcosts

06/2007

Extra-ordinaryeffects

Netchange

Indirectcosts

06/2008


SCSCustomer

facingsegments

SCSNIT/

Supportfunctions

Otheroperatingsegment

GHQ Elimination Indirectcosts

06/2009

c) Cost control Indirect costs: well on track to save 100-120 MCHF in 2009

in M

CHF

Swisscom

(excl. Fastweb)

+

Customer service costs-

Savings (mainly MarCom, due to rebranding)

+

Transformation

projects+

Centralised cost items (bad debt, capital taxes, etc.)

-

Savings (mainly FTE reductions)

FTE

17‘329

-975

+390

16‘744

+145

+160

-111

-61

-3

16‘874

-10

-

Savings

-

Savings

H1 2009, total comparablesavings of -55mm total

+5

M&A (ThePhoneHouse, Verizon/Webcall, Minick)+40 Pensions, Termination benefits

+ Customer

service costs-

SavingsIC activationsIC profits

-62

M&A(Antenna Hungária,Accarda, InfonetThePhoneHouse)

-29

Pensions, Termination

benefits

* include personnel expenses and other expenses, excluding dealer commissions and subsidies

*

7

1'078-

- 985 --

- - 911

+70-37-56 -42

-92

-10

Directcosts

06/2007


Netchange

Directcosts

06/2008

iPhone Outpayments Goodsand

services

SAC /SRC Directcosts

06/2009

c) Cost control Direct costs: decrease driven by revenue development

in M

CHF

Swisscom

(excl. Fastweb)

-74

H1 2009, total comparable reduction of -144 mm total

-37

M&A(Antenna Hungária,Infonet)

+70

Goods and services purchasedand SAC/SRC

-

Following revenue trend in project business

-

Lower handsets sales excl. iPhone

Prices and Volume of traditional business (mainly wireline/ wireless voice traffic)

*

* include goods and service purchased as well as dealer commissions and subsidies

8

1'988- -

- - 2'014 - 1'936

+144 +55 +13-186 -78

EBITDA06/2008

Revenue Directcosts

Indirectcosts

Capitalisedcosts &

other income

EBITDA comp.06/2009

Specialitems

EBITDA06/2009

d) Like for like EBITDA increased through cost control

in M

CHF

Swisscom

(excl. Fastweb) H1 2009 comparable EBITDA

improvement of +26 mm

-149 Net revenue (reported)-37

add. revenue iPhone

-33

EBITDA impact iPhone(+37 revenue-70 direct costs)

-45

Special items

indirect costs

CHF 199 mm YoY

cost reduction

9

e) Cockpit – trends over last 6 quarters, customers and financials

Ups and downs, however stable overall

52

3324

52 48

32

0

20

40

60Q

1 08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Gross adds/churn wireless SCS

227 217262 237

206 219

10.6% 10.6% 11.1% 11.2% 12.0% 11.7%

050

100150

200250

300

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

-1%

3%

7%

11%

15%

Net adds xDSL retail SCS Net adds IPTV

16 15

23 2126

50

5

10

15

20

25

30

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

#k

4.1%4.3% 4.8% 4.4%3.4% 3.8%

0%

2%

4%

6%

8%

10%

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

3.8%3.7%4.4% 3.8% 3.5% 3.9%

0%

2%

4%

6%

8%

10%

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Readiness to change operator Readiness to change operator

2.7%3.7% 3.6% 3.3% 3.4% 3.1%

0%

2%

4%

6%

8%

10%

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Wireline Voice Readiness to change operatorWireless

Churn #k #k

Broadband

1'161 1'266 1'188 1'174 1'134 1'201

0

500

1'000

1'500

2'000

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

608765

352693 659

751

0

500

1'000

1'500

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

2'933 3'058 3'094 3'113 2'916 3'001

0

500

1'000

1'5002'000

2'500

3'000

3'500

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

Net revenue EBITDA OpFCF after minority interest

10

e) Cockpit – trends over last 6 quarters, mobile

Mobile market and Swisscom’s performance in this market continue to be robust

113112 116 114 114 111

0

50

100

150

200

250

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

29 30 30 28 25 26

0

20

40

60

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

326 342

453412

304342

38 44 70 66 5254

0

100

200

300

400

500

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

ARPU Mobile [CHF]

ARPU Mobile Voice [CHF]

AMPU Mobile [min]

5052 53 54 52 48

0

20

40

60

80

100

120

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

AMPU Mobile Voice domestic [min]

AMPU outbound roaming [min]

Mobile Up-/Downgraders [k#]

Handsets sold#k

RES

SMECBU

thereof without subscription

-45 -40 -42 -54 -35

36 4175

5873 69

-43

-80

-40

0

40

80

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

#k

SCS

SCS

5 5 6 6 6 6

0

5

10

15

20

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

ARPU Mobile new data [CHF]

SCS

RES

SMECBUSCS

83 88 85 88 87 88

0

40

80

120

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

094 4 5 4 3 4

0

5

10

15

20

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

SCS

SCS

Market share net adds Mobile [%]

57% 66% 68% 62% 64%

0%

20%

40%

60%

80%

Q1

08

Q2

08

Q3

08

Q4

08

Q1

09

Q2

09

11

e) Cockpit – trends over last quarters, fixed lines

Unbundled lines per 30.6.2009 at 82k, with Swisscom Retail stable and CPS customers further down. Cable “ex-growth”?

Net line loss / net adds full access

Unbundled lines further increased, net loss including Wholesale slightly accelerating but still on low level

2'796 2'836 2'845 2'846

890 787 746 712

8231 573'654 3'648 3'640

350319

3'686

307308309288

31.12.07 31.12.08 31.03.09 30.06.09

Customer base

PSTN/ISDN with CPS

PSTN/ISDN excl. CPS

Lines incl. Wholesale

Full access

VoC Cable telephony customers*

?

Total PSTN/ISDN 30.6.09: 3‘558

*Source: Swisscable (figures on yearly basis only) ** Source: Liberty Global

-20-15 -16

-10

-21

-11-14

-17

-32 -33

2 28

19 26 25

-20-15 -16

-10-19

-9 -6 -8-62

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

net loss PSTN/ISDN (incl. CPS)thereof net loss to VoCnet adds full accessnet line loss incl. Wholesale

Cablecom telephony customers**

12

AgendaIntroduction

Slide

Bart Morselt, Head of IR

a)

Q2 = “Q Too”


b)

Revenue dynamics, price & volume vs structural & cyclical

c)

Cost control, progress made

d)

EBITDA conversion through cost control

e)

H1 cockpit, key results

f)

H1 2009 results:1.

Segments2.

Group

g)

Outlook 2009

Q&A

3

4

6

8

9

13

24

Carsten Schloter, CEO Swisscom

Ueli Dietiker, CFO Swisscom

All

13

f) Segments - Residential Customers

6m 2009

• Net revenue slightly below PY, only from lower intersegment revenue. Third party revenue remained stable y-o-y:

–

Mobile: CHF +3 MCHF YOY, with +21 MCHF handsets (launch of iPhone); +17 MCHF New Data (Subscriber growth); -34 voice (esp. outgoing due to more free calls with x-tra liberty and pricing);

–

Wireline and other revenue slightly down by -3 MCHF: +9 access (incl. xDSL); IPTV +11 MCHF offset by -23 MCHF traffic and other revenue.

• Direct cost decreased by -4 MCHF to 576 MCHF, increase of goods purchase (launch of iPhone) offset by lower outpayments (lower roaming and termination fees).

• Indirect cost up by 3.9% due to higher number of personnel (acquisition of The PhoneHouse and Customer Supports Units), salary increase and other opex, both for keeping service level high.

• # of IPTV subs more than doubled y-o-y (+47k in H109). Self installation run rate stable at 85%.

• ARPU decreasing due to liberty price plans and lower termination rates.

Financials and operational data

30.06.2009 YOY

Net revenue in MCHF 1) 2'481 -1.2%

Direct costs in MCHF -576 -1.0%

Indirect costs in MCHF 2) -429 3.9%

Contribution Margin 2 in MCHF 1'476 -2.6%

Contribution Margin 2 in % 59.5%

CAPEX in MCHF 67 6.3%

FTE's 4'789 8.2%

30.06.2009 YOY

Access lines in '000 2'764 -3.2%

BB subs in '000 1'222 13.4%

Mobile subs in '000 4'353 4.5%

Mobile churn rate 12.5% 0.8pp

Total ARPU in CHF 41 -6.8%

thereof ARPU new data in CHF 4 33.3%

Total AMPU in Min. 94 0.0%

National traffic in Mmin. 2'773 -8.3%

Intl' traffic in Mmin. 348 -3.9%

IPTV subs in '000 165 106.3%

1) incl. intersegment revenues

2) incl. capitalised costs and other income

14

f) Segments - Small & Medium-sized Enterprises

6m 2009Financials and operational data

• Net revenue previous year level–

Mobile: growth of subscriber base +9.7% and new data demand increases revenue by 11 MCHF.

–

Wireline: traffic due to weaker usage down by –3 MCHF; Access on level previous year

–

Other revenue down by -9 MCHF due to weaker Communication and Collaboration revenue (mainly hard-& software).

• Direct costs decline -12.6% explained by lower outpayments (lower roaming and termination fees).

• CM2 up by +3.4% to 421 MCHF due to good cost management.

• ARPU decline (-5.2%) attributable to –

lower termination rates–

new price plans and –

multi-SIM cards (mainly data-only)• Ongoing increase of new data ARPU due to

growing number of customers with mobile data usage

• BB subs base increased by 7.9% and represents 32% of total access lines.

30.06.2009 YOY

Net revenue in MCHF 1) 572 0.0%


Indirect costs in MCHF 2) -68 -2.9%

Contribution Margin 2 in MCHF 421 3.4%



FTE's 779 2.0%

30.06.2009 YOY

Access lines in '000 512 0.0%

BB subs in '000 164 7.9%

Mobile subs in '000 430 9.7%

Mobile churn rate 7.6% -0.6pp


thereof ARPU new data in CHF 10 25.0%

Total AMPU in Min. 198 -3.4%

National traffic in Mmin. 750 -4.9%

Intl' traffic in Mmin. 95 -5.9%



15

f) Segments - Corporate Business

• Revenue decline -2.8% YOY:–

Mobile nearly stable: additional revenue from subs growth, multi-SIM and new data business slightly overcompensated by price effects and reduced volume domestic + roaming

–

Wireline: revenues down YOY mainly due to lower traffic revenue -8 MCHF

–

lower project/outsourcing revenue driven by economic slowdown

• Direct cost decline -17.1% explained by lower outpayments (lower termination fees) and lower hardware/software sales.

• Indirect costs 4.2% higher driven by higher workforce (alliance Verizon, acquisition Webcall) and salary increase.

• CM2 margin further increased to 52% of net revenue (49.7% same period last year)

• Mobile subscriber increased by 11.6% YoY• Substantial price reductions and multi-SIM

dilution explain the ARPU decline of 12% YOY• Order intake for project/outsourcing business of

76 MCHF (-24% vs. PY).


30.06.2009 YOY

Net revenue in MCHF 1) 903 -2.8%



Contribution Margin 2 in MCHF 470 1.7%



FTE's 2'244 2.6%

30.06.2009 YOY

Access lines in '000 282 -2.1%

BB subs in '000 19 0.0%

Mobile subs in '000 695 11.6%

Mobile churn rate 9.3% 4.9pp


thereof ARPU New Data in CHF 17 6.3%

Total AMPU in Min. 178 -10.1%

National wireline traffic in Mmin. 823 -4.0%

Intl' wireline traffic in Mmin. 180 -3.2%



16

f) Segments - Wholesale


• Net revenue down by 13.9% YOY–

Mobile revenues -34 MCHF from lower inbound roaming and wireless termination mainly due to lower prices

–

Wireline access/traffic revenues -23 MCHF from broadband price reductions (connectivity) and lower termination as well as lower LRIC rates

–

Other revenue +4 MCHF from higher collocation revenue as a result of ongoing LLU

–

Intersegment revenues -61 MCHF, mainly due to lower outpayments charged to other segments. No CM1 impact on segment WS as direct cost are lower correspondingly (lower roaming, wireline and wireless voice termination mainly driven by lower rates)

• Indirect costs slightly higher (lower other income)

• CM2 down by -52 MCHF mainly as a result of decreasing inbound roaming, price reduction broadband access and lower LRIC rates

30.06.2009 YOY

Revenue from external customers in MCHF 445 -11.0%

Intersegment revenue in MCHF 271 -18.4%

Net revenue in MCHF 716 -13.9%



Contribution Margin 2 in MCHF 252 -17.1%


CAPEX in MCHF - nm

FTE's 89 -20.5%

30.06.2009 YOY

ULL in '000 82 nm

BB (wholesale) subs in '000 390 -13.3%

Wholesale traffic in Mmin. 5'915 -11.5%


17

f) Segments - Networks and Support Functions


30.06.2009 YOY

Personnel expenses in MCHF -340 8.6%

Rent in MCHF -114 0.9%

Maintenance in MCHF -101 -15.1%

IT expenses in MCHF -163 0.6%

Other OPEX in MCHF -132 -22.4%

Indirect costs in MCHF -850 -3.1%Capitalised costs and other income in MCHF 89 -16.0%

Contribution Margin 2 in MCHF -761 -1.3%Depreciation, amortization and impairment in MCHF -405 -10.6%

Segment result in MCHF -1'166 -4.7%

CAPEX in MCHF 366 -7.6%

FTE's 4'203 -2.6%

• Indirect costs below previous year (-3.1%)

–

Higher personnel costs mainly due to salary increases, as well as higher termination benefits

–

Other operating expenses below previous year as a result of lower expenses for maintenance driven by winter conditions in Q1 2009 and cost savings, as well as lower other Opex due to cost management and seasonal effects

• Lower capitalised costs mainly as a result of lower construction activities in the core network

• Segment result improves mainly due to lower depreciation charges as a result of a change of useful lives of cable (copper and fibre) from 15 years to 20-30 years

• CAPEX below previous year (-7.6%), mainly driven by lower daily business investment and capex management

18

f) Segments - Other operating segments

• YOY external revenue decline of -69 MCHF (-15.2%)

–

IT Services below PY due to shift to new banking platform in Q3 08 as well as pricing pressure and lower volume in the project business as a result of the economic downturn

–

Economic slowdown also has negative impact on Hospitality Services and the business of Sicap (within Participations)

–

Y-o-Y missing revenue from EURO08™ mainly at Swisscom Broadcast (within Participations)

• Opex decreased by 56 MCHF due to revenue development and cost saving initiatives, while other income includes a one-off benefit from the outsourcing of facility management

• CAPEX lower YOY especially caused by high expenditure in 2008 (including DVB-H/T rollout)

Financials and operational data 6m 2009

30.06.2009 YOY

Swisscom IT Services in MCHF 184 -16.7%

Swisscom Participations in MCHF 158 -10.2%

Hospitality Services in MCHF 38 -19.1%

Airbites CEE in MCHF 4 -55.6%

External revenue in MCHF 384 -15.2%

Net revenue in MCHF 1) 818 -10.3%

OPEX in MCHF -689 -7.5%Capitalised costs and other income in MCHF 24 118.2%

EBITDA in MCHF 153 -14.0%

EBITDA margin in % 18.7%


FTE's 4'437 -3.7%


19

• Top-line increased 13% YoY – mainly sourced by the Executive segment and its public administration contracts

• 6m industrial EBITDA with MEUR 265 +8.6% above previous year (excl. a payment of MEUR 30 in Q2 2008 received from TI), despite negative impact of ULL rate increase effective as of 1 January 2009

• CAPEX were MEUR 217 mainly due to the acceleration on IT projects and corporate customers activations. But CAPEX to sales ratio further reducing: 24% for 1H 2009

• FCF proxy (=industrial EBITDA-CAPEX) of MEUR 48 represents an up of MEUR 30 YOY.

• 93k new BB subs in 1H 2009 representing a 15% net adds market share versus 10% in 4Q 2008 and customer base (1.575 million at end of June 2009) increased more than the Italian market (6% versus 5%)

• 120k mobile active customers at 30.6.09• Contribution to Swisscom accounts in CHF lower

than previous year, due to strengthening of Swiss Franc in a YOY context. Comparable EBITDA up by MCHF 34 YOY (MCHF -48 from TI payments in 1H 2008 and MCHF -26 from currency effects in 1H 2009)


f) Segments - Fastweb

30.06.2009 YOY

Consumer revenue in MEUR 347 4.8%

SME revenue in MEUR 207 10.1%

Executive revenue in MEUR 365 23.7%

Net revenue in MEUR 919 12.9%

OPEX in MEUR -709 15.4%Capitalised costs and other income in MEUR 55 -27.6%

EBITDA in MEUR 265 -3.3%

Indust. EBITDA in MEUR 265 8.6%

EBITDA margin in % 28.8%

CAPEX in MEUR 217 -4.0%

FTE's 3'096 1.5%

In Swisscom accounts 30.06.2009 YOY

EBITDA in MCHF 399 -9.1%


30.06.2009 YOY

BB subs in '000 1'575 12.7%Mobile subs in '000 120 nm

20

f) Group YTD: P&L breakdownEB

ITD

A

Dep

reci

atio

n

PPA

am

ort.

Fast

web EB

IT

Net

inte

rest

Oth

er f

in.

resu

lt

Aff

. co

mp.

Tax

exp

ense

Net

inco

me

Min

orit

ies

SCM

net

inco

me

(in

CHF

mm

)

Despite lower EBITDA, net income increased y-o-y by +21% driven by lower depreciation (adjustment of useful lives of cable in 2009) as well as CBL provisions and foreign exchange loss in 2008.

Previous year includes recognition of CBL provision of -126 MCHF and -21 MCHF foreign exchange loss in other financial results

(2,427) (-938)

(-92) (1,397)

(-161)

(840)

(+18)(-244)

(846) (-6)

(-164) +20.8% YoY

2,335 -870

-79 1,386-1

(425)+20 -256

1,021 -6

(-128)

1,015

Tax rate

22.4%

Tax rate

20.0%

21

f) Group YTD: Cash flow breakdown

-860

-64 -19 -70 -126

-1'186

-517

1'1961'392

2'335+790

-293-40-984

EBIT

DA

Cape

x

Δ pe

nsio

n fu

nd o

bl

ΔNW

C/

othe

r CF

op

act

Op

FCF

befo

rem

inor

ity

inte

rest

Net

int

eres

t pa

id

Inco

me

taxe

s pa

id

Free

CF

Net

fin

anci

alin

vest

men

ts

Repa

ymen

t of

deb

t,ne

t

Div

pai

d SC

Msh

'hol

ders

Div

pai

d m

in i

nt

Oth

er C

F fr

om f

inac

t

Δ ca

sh/e

quiv

After dividend payment in April and further gross debt reduction

in H109, cash and cash equivalent reduced by -517 MCHF compared to 1.1.2009.

H109 OpFCF of 1’392 MCHF equals over 50% of FY target

22

f) Group Y-o-Y: CAPEX breakdown

Consolidated CAPEX

487

479 326

363 73

55

6m 2008

6m 2009

Swisscom Switzerland Fastweb Others

(in CHF mm)

860

CAPEX of Swisscom Switzerland

• Continue FTTx, VDSL, HSPA• ALL IP process IT

Customer focus projects

Next generationnetwork and IT

Existing infrastructure

• Unified CRM• Dispatching system for field force

• Infrastructure capacity extension• Universal Service Obligation• ULL

28%

47%

25%

27%

44%

29%

FY2007

6m2009

923

26%

44%

30%

FY2008

23

f) Group - Refinancing well on track

-

500

1'000

1'500

2'000

2'500

3'000

3'500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 >2018

.

-

500

1'000

1'500

2'000

2'500

3'000

3'500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 >2018

.

31.12.2008 debt portfolio 30.6.2009 debt portfolio

in C

HF

mill

ion

in C

HF

mill

ion

In Q1 2009, a CHF 1’250 mm domestic bond was placed, while during Q2 2009 Swisscom signed an agreement for a Private Placement in the amount of CHF

1’250 mm

The private placement will further improve the maturity profile:

Swisscom has the flexibility to use the frame for advances with maturities from 1

month to 7 years.

The 2011 and 2012 maturities will therefore be reduced significantly from the situation per 30.6.2009

Swiss bond Private placement

24

g) Outlook 2009

FY Guidance 2009, as provided back in March, confirmed again after interim results

Q1 '08 H1'08 Q1 '09 H1'09 as % of as % of as % of as % of

Net revenues 2008A 2008 2008 2009E 2009 2009Swisscom excl. Fastweb bln CHF 9.5 24% 49% 9.2-9.3 ~25% ~49%Fastweb MEUR 1'708 23% 48% 1'800 25% 51%

EBITDASwisscom excl. Fastweb bln CHF 3.9 25% 51% 3.8-3.9 ~25% ~50%Fastweb Industrial / MEUR 518 (548) 22% 47% 560 22% 47% (reported incl TI)

CapexSwisscom excl. Fastweb bln CHF 1.36 19% 41% ~1.35 ~17% ~40%Fastweb MEUR 438 23% 52% 415 20% 52%

Delta NWCSwisscom Group incl. FWB bln CHF -0.3 -0.1-0

OpFCFSwisscom Group incl. FWB bln CHF 2.5 31% 55% 2.6-2.7 ~26% ~51%

Questions & Answers

26

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 and Fastweb’s past and future filings and reports, including those filed with the U.S. Securities and Exchange Commission and in past and future filings, press releases, reports and other information posted on Swisscom Group Companies’ websites.

Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.

Swisscom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.”

For further information, please contact:phone: +41 31 342 6410 or +41 31 342 2658fax: +41 31 342 [email protected]/investor

mailto:[email protected]

http://www.swisscom.ch/investor

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