Slide 1: Second Quarter
SECOND QUARTER July 15, 2020
Slide 2: Highlights and strategic initiatives
Highlights and strategic initiatives Q2 H1 Sweden B2C The Baltics 2020 2020 – COVID-19 impact on roaming, TV ASPU – Remains resilient despite shutdown and prepaid sales during the quarter – Execution on backbook price increases in- – COVID-19 impact on roaming, equipment End-user SEK SEK line with p
Slide 3: Financial guidance for 2020 reinstated
Financial guidance for 2020 reinstated End-user service revenue Underlying EBITDAaL Capex1 2020 ~Flat 2.5-3.0bn Low-single digit Mid-single digit Mid-term 2.8-3.3bn growth growth Comments – Reinstated 2020 guidance assumes quarterly COVID-19 impact of SEK 100-120m on underlying EBITDAaL for the rest
Slide 4: Sweden
SWEDEN TELE2
Slide 5: Sweden Consumer
Sweden Consumer RGUs & net intake - core and legacy services ASPU year-on-year growth End-user service revenue (thousands) (% proforma) (SEK million, proforma, year-on-year growth %) +35 +23 +38 +23 +2% +3% +2% +2% +1% +34 4% 665 662 657 2% 454 451 442 413 663 664 +0.4% 464 +1 -3 -5 +4% -5% -5% -11%
Slide 6: Sweden Business
Sweden Business Mobile RGUs & net intake Mobile ASPU End-user service revenue (thousands) (SEK) (SEK million, proforma, year-on-year growth %) 200 -2% -3% -3% -6% -6% 190 +31 -11 288 +17 +4 +3 180 282 257 262 +6% +4% 265 +4% -0% -6% 170 276 271 271 249 258 160 -11% -12% -8% -15% -7% 913 916 920 950
Slide 7: Sweden overview
Sweden overview End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, proforma, year-on-year growth %) (SEK million) conversion, rolling 12m (SEK million, proforma) +3% 5,480 5,546 5,474 -2% -0% -1% -1% 5,212 5,251 -3% 1,040 1,018 1,061 1,000 980 -3% -3%
Slide 8: Baltics
BALTICS
Slide 9: Baltics – Operational highlights
Baltics – Operational highlights RGUs & net intake – mobile services Mobile ASPU year-on-year growth (thousands) (%) +41 +28 -18 -30 -33 13% 11% 9% +9% 1,875 1,902 1,895 1,878 7% +7% 1,853 5% 3% +2% 1% 961 963 954 950 942 -1% -3% 439 440 437 428 428 -5% Q2 ’19 Q3 ’19 Q4 ’19 Q1 ’20 Q2 ’20 Q2 ’19 Q3 ’
Slide 10: Baltics – Financials
Baltics – Financials End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, year-on-year organic growth %) (SEK million) conversion, rolling 12m (SEK million) +10% +8% +10% +6% +8% +6% 1,600 100% 1,344 1,392 1,400 1,255 1,295 1,205 90% 1,200 391 392 394 40
Slide 11: Financial Overview
FINANCIAL OVERVIEW
Slide 12: Revenue breakdown
Revenue breakdown Q2 Q2 YoY YoY % Comments SEK million 2020 2019 abs (organic) Strong mobile postpaid growth 1 Mobile 1 1,401 1,360 41 3% excluding roaming impact, driven by Postpaid 1,161 1,091 70 6% volume growth over the last year and initial effect of price adjustments Prepaid 240 269 -29 -11% F
Slide 13: Group results
Group results Q2 Q2 YTD YTD Comments SEK million 2020 2019 2020 2019 1 Underlying EBITDA increased by 3% Revenue 6,650 6,794 13,337 13,537 organically* in the quarter as growth in the Baltics, net benefits from 2019 synergies Underlying EBITDA 1 2,583 2,502 5,125 5,048 and mitigating activities offs
Slide 14: Group cash flow
Group cash flow Q2 Q2 YTD YTD Comments SEK million 2020 2019 2020 2019 1 Capex paid increased to SEK 728m due to Continuing operations higher network investments and timing of Underlying EBITDA 2,583 2,502 5,125 5,048 customer equipment capex Items affecting comparability -120 -271 -159 -532 2 Chang
Slide 15: Leverage at 2.4x
Leverage at 2.4x Economic net debt to underlying EBITDAaL* Comments (SEK billion) – Economic net debt increased by SEK 0.9 billion since Q1 2.4 24.7 2020, driven by payout of the first tranche of the ordinary 22.1 2.4 2.4 dividend (SEK 1.9bn) 2.6 – Leverage of 2.4x is below the target range of 2.5-3
Slide 16: To conclude...
TO CONCLUDE...
Slide 17: Key priorities going forward
Key priorities going forward Defend underlying EBITDAaL in 2020 Fast-track part of business transformation program Reduce sales and marketing spend versus original plan Execute on remaining backbook price adjustments in Sweden B2C Maintain focus on long-term strategy B2C: Win the Swedish household t
Slide 18: Thank you!
THANK YOU! TELE2
Slide 19: TELE
TELE