Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — Q1 2008 Earnings Presentation
17 slides from Telia Company AB's earnings presentation, April 2008
Slide 1: Interim Report January – March 2008
Interim Report January – March 2008 Lars Nyberg President and CEO
Slide 2: Good growth with improved EBITDA
Good growth with improved EBITDA Q1 2008 in brief • Satisfactory set of numbers, with strong market positions • Net sales SEK 24,398 million (22,724) – In local currency +6.6% • EBITDA* growth in absolute terms • EPS SEK 0.99 (0.89) * Excl. non-recurring items 2
Slide 3: What will drive investments
What will drive investments Acquisition opportunities • Eurasia - expansion in the region – Emerging markets – Cultural fit – Utilization of existing experience and resources – Co-operation with strong local partners • Mobility Services - the leading mobile operator in Latvia, LMT CAPEX • Mobility S
Slide 4: Outlook for 2008 unchanged
Outlook for 2008 unchanged Main contributors for the ambition to maintain EBITDA* margin level of 2007 • Eurasia - growth engine of the Group – Strong development to continue • Spain to meet its set targets – Improvements expected quarter by quarter • Denmark to improve its profitability • Efficienc
Slide 5: Interim Report January – March 2008
Interim Report January – March 2008 Kim Ignatius Executive Vice President and Chief Financial Officer
Slide 6: Good growth with improved EBITDA
Good growth with improved EBITDA SEK million Q1 2008 Q1 2007 • Net sales 24,398 22,724 – Net sales in local currencies +6.6% +5.0% • EBITDA excl. non-recurring items 7,755 7,583 – EBITDA margin 31.8% 33.4% • Income from associated 1,867 1,461 companies and JVs • Financial items -13 -129 • Income tax
Slide 7: Q1 2008 Net Sales +7.4%
Q1 2008 Net Sales +7.4% SEK million • Increase mainly driven by the acquisitions of Cygate, Didata and • Decline in traditional fixed line services in Crescom Sweden only partly offset by growth in IP services, International Carrier and the acquisition of DLG Tele in Denmark + 157 -77 24,398 + 652 +
Slide 8: Q1 2008 Operating Income
Q1 2008 Operating Income SEK million • Net sales +989, offset by increased OPEX • Increased competition • Increased costs in Spain • Increased costs in Denmark due to debitel acquisition, growing traffic volumes and 3G roll-out • Release of interconnect provisions in Sweden in Q1 2007 -140 • Cost sa
Slide 9: Statement of cash flows Q1 2008
Statement of cash flows Q1 2008 SEK million Jan-Mar 2008 Jan-Mar 2007 EBITDA excluding non-recurring items 7,755 7,583 Dividends received from associated companies - 530 Interest paid (net) -517 -2 Income taxes paid -1,379 -1,900 Payment of restructuring provisions -97 -113 Difference between paid/r
Slide 10: Strong financial key ratios
Strong financial key ratios March 31, 2008 Dec 31, 2007 Return on equity* 18.8% 18.6% Return on capital employed* 18.7% 19.4% Equity/assets ratio 48.4% 50.3% Net debt/equity ratio 32.3% 31.8% * Rolling 12 months One of the best rated Telecom Operators in Europe 10
Slide 11: Interim Report January – March 2008
Interim Report January – March 2008
Slide 12: Appendix
Appendix TeliaSonera
Slide 13: Key Financials – Income Statement and Cash Flow
Key Financials – Income Statement and Cash Flow SEK million Jan - Mar 2008 Jan - Mar 2007 Net sales 24,398 22,724 Gross income 10,934 10,181 Margin (%) 44.8 44.8 EBITDA excl. non-recurring items 7,755 7,583 Margin (%) 31.8 33.4 Operating income excl. non-recurring items 6,750 6,191 Margin (%) 27.7 2
Slide 14: Q1 2008 Net Sales vs Q4 2007 -2.1%
Q1 2008 Net Sales vs Q4 2007 -2.1% SEK million • Lower sales to corporate customers • Seasonality in Other Business Services in Q1 24,921 -69 -186 -194 -129 +55 24,398 • Seasonality and continued decline in traditional fixed line services mainly in Sweden • Provision for changed LLUB pricing in Whol
Slide 15: Q1 2008 Operating Income vs Q4 2007
Q1 2008 Operating Income vs Q4 2007 SEK million • Net sales -186 • Lower costs for subcontracting and sales and marketing • Mainly restructuring measures • Release of interconnect provisions in Q4 2007 -389 • Provision for changed LLUB pricing in Wholesale Sweden in Q4 2007 +120 +554 -1 -124 -37 6,7
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 – March 2008
Interim Report January – March 2008