Reliance Communications shares will be delisted

SUNRISE COMMUNICATIONS GROUP AG

Dividend increase

Press release Zurich, February 27, 2019, 10:01 p.m. CET Sunrise on growth path in financial year 2018 - 5% dividend increase Strong customer growth in the areas of mobile postpaid (+ 8.5% year-on-year), Internet (+ 8.3%) and TV (+14.1%) thanks to growth-oriented investments in network, service and products · Service revenue increased by +1.9% in the fourth quarter thanks to customer growth (including IFRS 15: +1.8%), total revenue due to lower revenue at Hubbing and hardware down -4.6%; Annual sales 2018 increased by +1.2% after stabilizing in the previous year Gross profit increase by + 3.7% in the fourth quarter and + 2.5% in the 2018 financial year, increased gross profit partially reinvested in growth dynamics Adjusted EBITDA + 2.4% in the fourth Quarter rise (including IFRS 15: + 3.6%), which led to organic growth of + 2.3% for the 2018 financial year · Proposed dividend increase of + 5% year-on-year to CHF 4.20 · For the 2019 financial year, a further growth expected with adjusted EBITDA between CHF 608 and 623 million as Sunrise continues to invest in growth; Dividend forecast confirmed at 4-6% growth xxx TABLE TOO LARGE xxx Olaf Swantee, CEO of Sunrise, comments: "After we stabilized adjusted EBITDA in the previous year, our growth investments paid off in 2018, led to strong customer growth, market share gains, a successful B2B transition and organic adjusted EBITDA growth. This solid performance and our outstanding result in the 'connect' network test once again confirm our strategy as a quality challenger in Switzerland. " Strongest net postpaid growth since 2010 The dynamic in customer growth continued in the fourth quarter of 2018 with a net growth of 42,300 in the postpaid area. This is the company's strongest result since 2010, made possible by the acquisition of B2B customers (fourth quarter: Axpo; Federal Office for Information Technology and Telecommunications) and the strategic focus on quality in the network, in services and in products. In the 2018 financial year, Sunrise gained + 8.5% net mobile postpaid new customers, compared to + 7.3% in the previous year. The mobile prepaid customer base decreased compared to the previous year as customers continued to switch to postpaid tariffs. In a year-on-year comparison, the number of Internet subscribers rose by 8.3% and that of TV subscribers by + 14.1%. The remarkable increase in these segments is due to the "Sunrise ONE" combined offer, improved TV content (e.g. "Sky Sport" and "Sky Show"), the focus on the best services and dedicated promotions. From stabilizing sales to sales growth in the 2018 financial year Service sales in the fourth quarter increased by +1.9% compared to the previous year (including IFRS 15 +1.8%) as a result of an increase in sales for mobile postpaid, Internet / TV and B2B. This is an increase compared to the third quarter, when a summer campaign for roaming slowed growth. Total fourth quarter revenue declined -4.6% year over year to CHF 486 million due to decreased hardware and hubbing revenue, both of which have low margins. Revenue in fiscal year 2018 increased +1.2% year-on-year, which is a step forward compared to the stabilization in the previous year. The growth resulted from customer growth and B2B dynamics, which more than offset the structural declines in the fixed-line and prepaid areas. Higher gross profit and higher organic adjusted EBITDA Gross profit in the fourth quarter rose + 3.7% year-on-year to CHF 313 million, due to the increased service revenue and the improved service gross margin. The improved gross service margin was supported by revenue mix effects, the continued decline in mobile termination charges, access agreements with energy providers and a one-time change in roaming billing. The gross profit in the 2018 financial year was CHF 1,223 million, an increase of + 2.5% compared to the previous year. The gross profit growth was partially reinvested in the growth momentum (adjusted operating costs in the fourth quarter + 4.9% year-over-year), which supported the company's strongest postpaid net growth since 2010. Adjusted EBITDA rose in the fourth quarter by + 2.4% (including IFRS 15 + 3.6%) to CHF 152 million, which resulted in an organic adjusted EBITDA increase of + 2.3% for the 2018 financial year (adjusted for transmission masts ). Net profit in the 2018 financial year improved from CHF 85 million in the previous year to CHF 107 million, adjusted for the income from the sale of the transmission masts last year. Stable leverage ratio - 5% higher dividend proposed Equity free cash flow was mainly determined by net working capital. In fiscal 2018, higher mobile device prices and the settlement of accrued roaming discounts had an impact on net working capital, after fiscal 2017 benefited from accrued roaming discounts and the positive effects of the sale of the transmission towers. The equity free cash flow therefore fell from CHF 219 million in the previous year to CHF 149 million. The ratio of net debt to adjusted EBITDA remained roughly constant at 1.99x, compared to 1.97x at the end of 2017. The Board of Directors will propose a dividend of CHF 4.20 per share at the Annual General Meeting, which corresponds to an increase of 5% compared to the previous year . The dividend is paid from capital contribution reserves. Forecast for the 2019 financial year with sales and adjusted EBITDA growth For the 2019 financial year, sales of between CHF 1860 and 1900 million and an adjusted EBITDA of between CHF 608 and 623 million are expected. The forecasts are made in accordance with IFRS 15, which will have a negative impact in the low single-digit CHF million range on adjusted EBITDA year-on-year. These figures do not yet take into account the effects of IFRS 16. CAPEX expenses are expected to be in a range between CHF 420 and 460 million for the 2019 financial year. As mentioned earlier, this includes payments of CHF 91 million for frequency bands, a down payment of CHF 61 million for fixed network access to Swisscom and a down payment of CHF 16 million for expanding network access to energy providers. Without these effects, the CAPEX forecast is between CHF 252 and 292 million. This includes investments for an accelerated introduction of 5G, which will further advance network quality and customer dynamics and lay the foundation for mobile broadband in rural areas. Dividend policy confirms Sunrise is reaffirming its long-term dividend policy based on the principle of distributing at least 65% of equity free cash flow, with this figure being increased to 85% as soon as the ratio of net debt to adjusted EBITDA falls below 2.0. Sunrise continues to aim for an annual dividend increase of 4-6% for the period 2018-2020. This medium-term forecast was introduced in March 2018 to protect investors from short-term cash flow volatility due to payments for landline access and frequency bands. If the forecast for 2019 is received, Sunrise is expected to propose a dividend for the 2019 financial year of between CHF 4.35 and 4.45 per share, payable in 2020 from reserves from capital contributions. Supplementary table of results for the 2018 financial year xxx TABLE TOO LARGE xxx You can find the IFRS report, the investor presentation and further information at www.sunrise.ch/reports (http://www.sunrise.ch/reports). Sunrise Communications Group AG Corporate Communications mailto: [email protected] www.sunrise.ch (http://www.sunrise.ch/) Telephone: 0800 333 000 From abroad: +41 58 777 76 66 SRCG / Valor 026729122 Disclaimer The information contained in this media release has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, reasonableness or correctness of the information or opinions contained in. None of Sunrise Communications Group AG, its subsidiaries or any of their respective employees, advisers, representatives or affiliates shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this media release. The information contained in this media release is provided as at the date of this media release and is subject to change without notice. Statements made in this media release may include forward-looking statements. These statements may be identified by the fact that they use words such as "anticipate", "estimate", "should", "expect", "guidance", "project", "intend", "plan", "believe", and / or other words and terms of similar meaning in connection with, among other things, any discussion of results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. Such statements are based on management's current intentions, expectations or beliefs and involve inherent risks, assumptions and uncertainties, including factors that could delay, divert or change any of them. Forward-looking statements contained in this media release regarding trends or current activities should not be taken as a representation that such trends or activities will continue in the future. Actual outcomes, results and other future events may differ materially from those expressed or implied by the statements contained in. Such differences may adversely affect the outcome and financial effects of the plans and events described in and may result from, among other things, changes in economic, business, competitive, technological, strategic or regulatory factors and other factors affecting the business and operations of the company. Neither Sunrise Communications Group AG nor any of its affiliates is under any obligation, and each such entity expressly disclaims any such obligation, to update, revise or amend any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this media release. It should be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of full-year results. * Media release: http://e3.marco.ch/publish/sunrise/821_3836/20190227_MM_Q418_results_DE.pdf ________________________________________________________________________________ This message has been created and distributed using the Software Suite marCo (R) - Market Communication Office (R). marCo (R) is essential to handle business critical information. 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