Slide 1: Second Quarter 2024
• Second Quarter 2024 July 17, 2024 Information Classification: Internal
Slide 2: Highlights
• 2 Highlights 4% organic growth in end-user service revenue • 3% organic growth in underlying EBITDAaL • Solid equity free cash flow. Leverage at 2.4x • Achieved target of only two IT stacks in Sweden following Comviq migration • Ranked as the most sustainable company in Sweden by Time Magazine, an
Slide 3: Solid performance
• Solid performance 3 1) Organic growth rate • 2) Excluding spectrum and leases Sweden Consumer in Q2 • EUSR growth of 4% driven by Fixed broadband at 9% and Mobile postpaid at 7% • Strong ASPU growth in Fixed broadband and Mobile postpaid mainly driven by pricing Sweden Business in Q2 • EUSR growth
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden Consumer: Strong value growth
• Mobile postpaid RGUs Fixed broadband RGU & ASPU Thousand QoQ and YoY growth % Digital TV Cable & Fiber RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Fixed broadband RGUs Digital TV Cable & Fiber RGUs Sweden Consumer: Strong value growth Mobile postpaid RGU & ASPU Thousand QoQ and YoY gr
Slide 6: Sweden Consumer: Strong EUSR growth in connectivity
• Mobile prepaid Fixed broadband EUSR SEK million, YoY growth % Digital TV EUSR SEK million, YoY growth % Mobile postpaid Fixed Broadband Digital TV Cable & Fiber DTT TV Sweden Consumer: Strong EUSR growth in connectivity Mobile EUSR SEK million, YoY growth % Q2 highlights • Mobile EUSR grew 5% due
Slide 7: Sweden Business: Continued topline growth
• Fixed Solutions Mobile Mobile ASPU YoY growth % End-user service revenue SEK million, YoY growth % Sweden Business: Continued topline growth Mobile RGU & net intake Thousand QoQ and YoY growth % Q2 highlights • EUSR growth of 2% despite economic headwind • EUSR growth of 6% in Mobile mostly driven
Slide 8: Business Sweden financials: Improved EBITDAaL growth
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Business Sweden financials: Improved EBITDAaL growth End-user service revenue SEK million, YoY growth % Q2 highlights • EUSR grew by 4% mainly driven by solid performance in B2
Slide 9: Baltics
• Baltics Information Classification: Internal
Slide 10: Baltics operational highlights: Solid overall performance
• Mobile RGUs Latvia – Mobile RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Baltics operational highlights: Solid overall performance Estonia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Q2 highlights • The overall Baltic mobile postpaid customer base continued to increase supported
Slide 11: Baltics financials: Strong cash flow
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Latvia Baltics financials: Strong cash flow End-user service revenue SEK million, YoY growth % Lithuania Q2 highlights • Solid EUSR growth of 6% led by Lithuania and driven by b
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Group results
Group results • Group results Comments • D&A decreased partly because the surplus value of the TDC acquisition has been fully amortised • Net interest and other financial items increased partly due to a SEK 77 million other financial gain related to bond repurchase last year, and partly due to highe
Slide 14: Group cash flow
Group cash flow • Group cash flow Comments • Capex remains high due to continued intense network investments • Changes in working capital were mainly impacted by a temporary increase in liabilities • Taxes paid declined as last year included approximately SEK -125 million of withholding tax payments
Slide 15: Leverage at 2.4x
Leverage at 2.4x • Leverage at 2.4x Comments • Economic net debt increased by SEK 0.1 billion compared to year-end 2023. The first tranche of the ordinary dividend was covered by cash generated in the business • Leverage of 2.4x was below the lower end of the target range of 2.5-3.0x • In June, Tele
Slide 16: Strategy Execution at full speed
• IT Migration CX & Go to Market 3rd Party Retail Own (Digital) Channels Volume Value Legacy platforms Digital capabilities 2020 2026 16 Strategy Execution at full speed Information Classification: Internal
Slide 17: The IT landscape
• The IT landscape • 6 stacks 2 stacks 2 IT stacks • Today >6 different IT stacks • 2021 17 Information Classification: Internal
Slide 18: Strategy Execution Program update: Creating customer value in Q2
• • Radical improvements in customer experience and value will generate operational efficiency Strategy Execution Program (SEP) update Creating customer value in Q2 • Consumer • Launch of Tele2 Chatbot • New 360° Customer Service Agent Toolbox • Business • Closure of Copper Decommission Project • Up
Slide 19: Strategy Execution Program update: Annualised run-rate savings
• 19 • Radical improvements in customer experience and value will generate operational efficiency Strategy Execution Program (SEP) update Annualised run-rate • Q2 2024 Realised in • Q2 2024 200 40 Annualised run-rate target YE 2026 600 OPEX reduction • (SEK million) • - Q2 mainly driven by organisat
Slide 20: Financial outlook (unchanged)
Financial outlook (unchanged) • Financial outlook (unchanged) Underlying EBITDAaL1 End-user service revenue1 1-3% 3-4% Capex to sales2 13-14% 20 2024 guidance Mid-term outlook Low to mid- single-digit Mid-single-digit 10-12% 1) Organic growth rate • 2) Excluding spectrum and leases Capex to sales of
Slide 21: Enabling a society of unlimited possibilities
• Enabling a society of unlimited possibilities Each era brings its own limitations. Breaking them means breaking new ground. We have always challenged limitations to realize new possibilities for our customers and society at large. • Today, we are deeply connected to the digital lifestyle of societ