Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — Q2 2008 Earnings Presentation
17 slides from Telia Company AB's earnings presentation, July 2008
Slide 1: Interim Report January - June, 2008
Interim Report January - June, 2008 Lars Nyberg President and CEO
Slide 2: Good growth with improved margins
Good growth with improved margins Q2 2008 in brief • Satisfactory set of numbers with improved margins • Net sales SEK 25,274 million (23,901) – In local currencies +5.9% • EBITDA* SEK 7,978 million (7,516) – EBITDA-margin* 31.6% (31.4) • EPS SEK 0.92 (0.85) * Excl. Excl. non-recurring items 2
Slide 3: Strong business
Strong business • Attractive industry with high barriers to entry • Success based on providing high quality networks and first class services • Unique position in the Nordic and Baltic region • Well positioned in high growth emerging markets 3
Slide 4: Outlook for 2008 unchanged
Outlook for 2008 unchanged Net Sales • expected to show stable growth in the financial year 2008 compared to the previous year • H1 2008 +6.5% and in local currencies +6.2% • TeliaSonera’s ambition for 2008 is to maintain the EBITDA- EBITDA-margin margin level of 2007, excl. non-recurring items, des
Slide 5: Interim Report January - June, 2008
Interim Report January - June, 2008 Kim Ignatius Executive Vice President and Chief Financial Officer
Slide 6: Q2 2008 Net Sales +5.7%
Q2 2008 Net Sales +5.7% SEK million • Increase primarily driven by • Growth in broadband services, international carrier sales and the the acquisition of Didata and acquisition of DLG Tele offset the Crescom continued decline for traditional fixed +190 -29 25,274 line services +407 +770 +35 • Total
Slide 7: Q2 2008 Operating Income Year-on-Year
Q2 2008 Operating Income Year-on-Year SEK million • Net sales +770 • Primarily restructuring measures • Improved margins in • Early retirement and other personnel reductions • Sweden, as a result of cost savings • Terminating premises contracts • Norway, due to lower sales commissions • Denmark, low
Slide 8: Good growth with improved margins
Good growth with improved margins SEK million Q2 2008 Q2 2007 • Net sales 25,274 23,901 – Net sales in local currencies +5.9% +6.0% • EBITDA excl. non-recurring items 7,978 7,516 – EBITDA-margin 31.6% 31.4% • Income from associated 2,331 1,865 companies and JVs • Financial items -631 -151 • Income t
Slide 9: Statement of cash flows Q2 2008
Statement of cash flows Q2 2008 SEK million Apr-Jun 2008 Apr-Jun 2007 EBITDA excluding non-recurring items 7,978 7,516 Dividends received from associated companies 674 607 Interest paid (net) -344 -171 Income taxes paid -949 -811 Payment of restructuring provisions -99 -159 Difference between paid/r
Slide 10: Strong financial key ratios
Strong financial key ratios June 30, 2008 Dec 31, 2007 Return on equity* 18.5% 18.6% Return on capital employed* 17.2% 19.4% Equity/assets ratio 49.3% 50.3% Net debt/equity ratio 46.5% 31.8% * Rolling 12 months One of the best rated Telecom Operators in Europe 10
Slide 11: Interim Report January - June, 2008
Interim Report January - June, 2008
Slide 12: Appendix
Appendix TeliaSonera
Slide 13: Key Financials – Income Statement and Cash Flow
Key Financials – Income Statement and Cash Flow SEK million Apr-Jun 2008 Apr-Jun 2007 Net sales 25,274 23,901 Gross income 11,420 10,221 Margin (%) 45.2 42.8 EBITDA excl. non-recurring items 7,978 7,516 Margin (%) 31.6 31.4 Operating income excl. non-recurring items 7,410 6,575 Margin (%) 29.3 27.5
Slide 14: Q2 2008 Net Sales vs Q1 2008 +3.6%
Q2 2008 Net Sales vs Q1 2008 +3.6% SEK million • Seasonally higher sales to corporate customers in Other Business Services and the acquisition of Avansys +105 +12 25,274 +66 +141 +552 24,398 • Strong revenue growth in the acquired businesses and Azerbaijan • Growth primarily in international carrier
Slide 15: Q2 2008 Operating Income vs Q1 2008
Q2 2008 Operating Income vs Q1 2008 SEK million • Primarily restructuring • Net sales +66 measures • Higher costs for • Lower net cost for Head Office & • Early retirement and • interconnection (international carrier operations) other personnel • marketing mainly in Sweden and Finland Common functio
Slide 16: Forward-looking statements
Forward-looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and
Slide 17: Interim Report January - June, 2008
Interim Report January - June, 2008