request-4q10 slidesv2

Upload: juan-pablo-pellat-9791

Post on 08-Apr-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/7/2019 Request-4Q10 Slidesv2

    1/17

    4Q10 Earnings Conference Call

    February 10, 2011

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

  • 8/7/2019 Request-4Q10 Slidesv2

    2/17

  • 8/7/2019 Request-4Q10 Slidesv2

    3/17

  • 8/7/2019 Request-4Q10 Slidesv2

    4/17

    Customer Experience

    BEST EVER CSAT and FCR Improvement 12 quarters

    op an ottom- ox

    INDUSTRY-BEST Call CSAT and FCR (Vocalabs)

    BEST EVER Calls per Sub, achieving INDUSTRY BESTIN CLASS

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.4

  • 8/7/2019 Request-4Q10 Slidesv2

    5/17

    Customer Experience (contd)

    INDUSTRY-BEST Data Satisfaction and BEST EVER

    etwor oc s, an

    BEST EVER Q4 and annual Postpaid churn

    BEST quarter and BEST annual Prepaid churn in 5 years

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.5

  • 8/7/2019 Request-4Q10 Slidesv2

    6/17

    Brand

    BEST EVER Brand Health metrics in second half:

    Most Want to Investigate

    Purchase Consideration

    rs ran re erence

    Positive Brand Momentum

    BEST EVER Net Promoter Score, up 24 points in 2 years

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.6

  • 8/7/2019 Request-4Q10 Slidesv2

    7/17

    Brand (Subscriber Metrics)

    Total net adds of 1.1M and Postpaid net add positive, both

    Postpaid net port positive in Q4 for 1sttime EVER

    pr n ma or pos pa ran orconsecutive quarter(1), and 5thconsecutive quarter of

    positive Sprint brand net adds

    Maintained strong prime mix of 84%

    Post aid SoGA u YoY for 6thstrai ht uarter and u 460

    bps annually

    Prepaid net adds up sequentially to BEST EVER Q4

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.7

    (1) based on T-Mobile Q4 consensus estimates

  • 8/7/2019 Request-4Q10 Slidesv2

    8/17

    Cash

    $913M Q4 Free Cash Flow, $2.5 billion in 2010

    Grew total net operating revenues sequentially and year-over- ear. First annual rowth in 4 ears

    Year-over-year net operating loss improvement of 74%and 57% quarterly and annually, respectively

    verac eve rg n an ynergy oa s

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.8

  • 8/7/2019 Request-4Q10 Slidesv2

    9/17

    Annual Postpaid Subscriber Change vs.

    r or ear3,000

    1,000

    2,000

    (1,000)

    (000s)

    (4,000)

    (3,000)

    ,

    T-MobileSprint Verizon AT&T

    2006 2007 2008 2009 2010

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.9

    Based on Sprint Pro-forma results for 2005, Verizon Pro-forma results for 2008-2010 and T-Mobile Q4 consensus estimates

  • 8/7/2019 Request-4Q10 Slidesv2

    10/17

    Overall Revenue Growth

    $9,000

    Consolidated Net Operating Revenue & Wireless Service Revenue(1)

    Consolidated Net Operating Revenue

    $8,000

    ions

    5.5%YoY

    $7,000

    $Mill

    $6,000

    4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

    Sequential Consolidated Net Operating Revenueand Wireless Service Revenue(1) growth

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.10

    (1) Retail Service Revenues + Wholesale, Affiliate and Other Service Revenues

  • 8/7/2019 Request-4Q10 Slidesv2

    11/17

    Solid Cash Performance

    $5.5

    Cash, Cash Equivalents and Short-TermInvestments($B)

    $3.9

    $4.4 $4.3$4.7

    generate positive FreeCash Flow* in 2011

    4Q09 1Q10 2Q10 3Q10 4Q10

    Goal to maintain a the foreseeable future

    ree as ow $2.5B full year Free Cash Flow*

    $5.5B cash, cash equivalents and short-term investments

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.11

  • 8/7/2019 Request-4Q10 Slidesv2

    12/17

    Adjusted OIBDA* Impacted by Stronger Gross Adds

    $2.0

    4.354.404.454.50

    Adjusted OIBDA* ($B) & Retail Gross Adds(1)

    3.803.853.903.954.004.054.104.154.204.25. onso ate .

    Retail Gross Adds(1)

    $1.5

    3.303.353.403.453.503.553.603.653.703.75

    $1.409$1.478 $1.501

    $1.339 $1.315 2.802.852.902.953.003.053.103.153.20.

    $1.0 2.502.552.602.652.70.

    4Q09 1Q10 2Q10 3Q10 4Q10

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.12

    (1) Retail Gross Adds include Retail Postpaid and Retail Prepaid Gross Additions

  • 8/7/2019 Request-4Q10 Slidesv2

    13/17

    Q&A

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.13

  • 8/7/2019 Request-4Q10 Slidesv2

    14/17

  • 8/7/2019 Request-4Q10 Slidesv2

    15/17

    Non-GAAP Reconciliations Wireless

    nau e(Millions, except Margin Data)

    Quarter To Date

    Year To Date

    , , , , ,

    2010 2010 2009 2010 2009

    Operating Loss (267)$ (345)$ (635)$ (1,229)$ (1,955)$

    Severance and exit costs (4) 12 - 62 11 307

    Gains from asset dispositions and exchanges (5) (69) - (8) (69) (68)

    Asset impairments and abandonments 121 - 41 121 41

    Acquisitions (7) - - 35 - 35

    Depreciation 1,100 1,164 1,337 4,533 5,252

    Amortization 149 246 320 1,164 1,586

    Adjusted OIBDA* 1,046 1,065 1,152 4,531 5,198

    Capital expenditures(2)

    473 341 427 1,444 1,161Adjusted OIBDA* less Capex 573$ 724$ 725$ 3,087$ 4,037$

    Adjusted OIBDA Margin* 16.0% 16.6% 18.2% 17.5% 20.1%

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.15

    See accompanying Notes to the Financial Information (Unaudited) in the Press Release

  • 8/7/2019 Request-4Q10 Slidesv2

    16/17

    Non-GAAP Reconciliations Wireline

    nau e(Millions, except Margin Data)

    Quarter To Date

    Year To Date

    ecem er , ep em er , ecem er , ecem er , ecem er ,

    2010 2010 2009 2010 2009

    Operating Income 128$ 131$ 94$ 630$ 57$Severance and exit costs (4) - - 15 (3) 93

    Asset impairments and abandonments 4 - 6 4 6

    Access costs (6) - - - (84) (25)

    Depreciation 135 140 144 543 568

    Adjusted OIBDA* 267 271 259 1,090 1,221

    Capital expenditures (2) 67 59 62 231 258

    Adjusted OIBDA* less Capex 200$ 212$ 197$ 859$ 96$

    Adjusted OIBDA Margin* 21.8% 21.8% 19.5% 21.6% 21.7%

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.16

    See accompanying Notes to the Financial Information (Unaudited) in the Press Release

  • 8/7/2019 Request-4Q10 Slidesv2

    17/17

    Non-GAAP Reconciliations Free Cash Flow

    nau e(Millions)

    Quarter Ended Year to Date

    December 31, September 30, December 31, December 31, December 31,

    2010 2010 2009 2010 2009

    Net Cash P rovided by Operating Activities 1,467$ 971$ 1,215$ 4,815$ 4,891$

    Capital expenditures (523) (490) (484) (1,935) (1,603)

    Expenditures relating to FCC licenses (103) (108) (120) (459) (591)

    Proceeds from sales and exchanges of assets 76 9 58 101 115

    Ot er nvest ng act v t es, net 4 2 3 10 10

    Free Cash Flow* 913 384 666 2,512 2,802

    Debt financing costs - - - (51) -

    Decrease in debt and other, net (107) (1) (1,012) (862) (923)

    Acquisitions, net of cash acquired - - (560) - (560)Investment in Clearwire - - (1,118) (58) (1,118)

    er nanc ng ac v es, neNet I ncrease (Decrease) in Cash, Cash Equivalents and

    Short-Term Investments 807$ 389$ (2,020)$ 1,549$ 205$

    2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted,confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.17

    See accompanying Notes to the Financial Information (Unaudited) in the Press Release