Tele2 Ab Class A · OMXSTO:TEL2_A
Tele2 Ab Class A — Q2 2019 Earnings Presentation
29 slides from Tele2 Ab Class A's earnings presentation, Jul 22, 2019
Slide 1: Interim Report – Second Quarter: Q2 2019 Highlights
TELE2 Interim Report – Second Quarter Q2 2019 HIGHLIGHTS ● Revenue of SEK 6.8 billion, representing organic decline of -2 percent ● End user service revenue of SEK 5.1 billion, representing organic decline of -1 percent ● Organic growth of 3 percent in underlying EBITDA excluding IFRS 16 to SEK 2.2
Slide 2: CEO Word – Q2 2019
CEO WORD – Q2 2019 In the second quarter of 2019 we took additional steps to focus our geographical footprint by closing the sale in Kazakhstan and announcing the sale of our Croatian business. We also propose an extraordinary dividend of SEK 6 per share to distribute the proceeds from the transacti
Slide 3: Analysis of cash flow statement
5 (40) TELE2 Interim Report – Second Quarter Analysis of cash flow statement Total operations SEK million Apr–Jun 2019 IFRS 16 Apr–Jun 2018 IAS 17 Jan–Jun 2019 IFRS 16 Jan–Jun 2018 IAS 17 Underlying EBITDA, continuing operations 2,502 1,460 5,048 2,894 Items affecting comparability, continuing opera
Slide 4: End-user service revenue per segment, Q2 2019
End-user service revenue per segment, Q2 2019 ou
Slide 5: Financial guidance
Net Intake RGU base Organic % –2% –4% –9% Organic % Q2 2019 PRESENTATION Contacts Appendices www.tele2.com 6 (40) TELE2 Interim Report – Second Quarter Financial guidance Financial guidance unchanged, capex updated to reflect Croatia reported as a discontinued operation Tele2 AB gives the following
Slide 6: Tele2
== = al : ee ie TELE2
Slide 7: Second Quarter July 17, 2019
SECOND QUARTER July 17, 2019
Slide 8: Group highlights – Q2 2019
Group highlights -- Q2 2019 % change organic SEK billion Q2 2019 Comments Revenue 6.8 -2% End-user service revenue 5.1 -1% Organic growth of end-user service revenue of -1%, including Mobile EUSR +1% Fixed EUSR -5% Underlying EBITDA ex. IFRS 16 2.2 +3% Capex ex. spectrum and leases 0.5 Organic is co
Slide 9: Tele2 is becoming a true integrated challenger
Tele2 is becoming a true integrated challenger Drive FMC in Sweden B2C -- Increasing penetration of FMC bundle benefits now reaching 93k FMC-customers -- FMC benefits introduced on Boxer brand -- Tele2 rebranding campaign launched Sweden B2B turnaround -- Strong volume growth but continued pressure
Slide 10: Growth and cost initiatives drive cash flow
Growth and cost initiatives drive cash flow FY2018 Starting Point -- proforma* 1 Low-single digit end-user service revenue growth -- SEK 450m of revenue synergies Expected to be flat in 2019, which is a transition year, and low-single digit growth in the mid-term driven by strategy initiatives End-u
Slide 11: Sweden
SWEDEN TELE2
Slide 12: Sweden Consumer – Operational highlights
Sweden Consumer -- Operational highlights ASPU year-on-year growth (%, proforma) 5% 3% 1% -1% -3% -5% -0.1% -0.9% -4.4% RGUs & net adds -- core and legacy services (thousands, proforma) +11 +24 +28 +20 +34 -12 654 +1 801 +11 1,794 -1 -32 368 420 1,173 655 +1 814 +13 1,804 +10 -25 351 411 1,175 658 +
Slide 13: Sweden Consumer – Financials
Sweden Consumer -- Financials End-user service revenue (SEK million, proforma, year-on-year growth %) +6% +4% +5% +3% +2% 479 +1% 595 +12% 1,168 +4% 123 377 295 475 +10% 601 +11% 1,189 +3% 117 365 300 474 +0% 613 +10% 1,189 +4% 116 353 289 466 -1% 618 +8% 1,178 +2% 106 341 278 464 -3% 627 +5% 1,190
Slide 14: Sweden Business – Operational highlights
Sweden Business -- Operational highlights Mobile RGUs (thousands, proforma) +5% 867 881 889 896 913 Mobile ASPU (SEK, proforma) -9% 184 180 183 177 168 End-user service revenue (SEK million, proforma, year-on-year growth %) -5% -2% -1% -2% -4% 264 -0% 309 -14% 475 -1% 246 -3% 307 -10% 473 +3% 280 +4
Slide 15: Sweden Business – Financials
Sweden Business -- Financials Revenue (SEK million, proforma) -3% 139 421 1,047 152 352 1,026 137 504 1,062 168 446 1,033 170 375 1,008 Underlying EBITDA ex. IFRS 16 and margin (SEK million, proforma) +4% 323 286 408 359 346 301 378 306 335 258 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 End-user Equipment W
Slide 16: Sweden overview
Sweden overview Total end-user service revenue (SEK millions, proforma) -2% 4,268 4,249 4,272 4,197 4,199 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Underlying EBITDA ex. IFRS 16 and margin (SEK millions, proforma) +3% 1,731 1,947 1,774 1,848 1,782 31% 36% 30% 34% 33% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Underlying EBI
Slide 17: International
INTERNATIONAL 1
Slide 18: Baltics – Operational highlights
Baltics -- Operational highlights Mobile RGUs (thousands) +1% 3,234 3,276 Q2'18 Q2'19 ASPU development (EUR) +5% 6.4 6.7 Q2'18 Q2'19 Brand campaign Q2 highlights - Mobile RGUs increased by 1% with continued strong growth in Lithuania and Latvia - Estonia saw the highest quarterly net adds since 2012
Slide 19: Baltics – Financials
Baltics -- Financials End-user service revenue (SEK million) +6% 644 654 661 660 704 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Underlying EBITDA ex. IFRS 16 and margin (SEK million) +10% 366 402 374 385 413 33% 35% 31% 34% 35% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Underlying EBITDAaL - Capex* and cash conversion, rolli
Slide 20: Financial Overview
FINANCIAL OVERVIEW ax
Slide 21: Group results Q2 2019
Group results Q2 2019 SEK million Q2 2019 Q2 2018 Revenue 6,794 5,113 Underlying EBITDA 2,502 1,460 Margin (%) 37% 29% Items affecting comparability 1 -271 -129 D&A 2 -1,276 -496 Impairment 3 -452 0 JVs and associated companies 4 -73 0 Operating profit 431 835 Interest income/expenses -121 -84 O
Slide 22: Group cash flow Q2 2019
Group cash flow Q2 2019 SEK million Q2 2019 Q2 2018 Underlying EBITDA, continuing operations 2,502 1,460 Items affecting comp., continuing operations -271 -129 EBITDA continuing operations 2,231 1,332 EBITDA discontinued operations 0 2,134 361 Amortization of lease liabilities -297 -1 Capex paid -72
Slide 23: Synergy update
Synergy update Benefit in quarter Run-rate (Annualized at end of quarter) Target (Run-rate at end of year 3) Opex synergies (SEK million) 100 450 900 Revenue synergies Important first steps taken towards target of SEK 450m in 5 years, including FMC benefits for Boxer customers Drivers - We realized
Slide 24: Financial guidance – adjusted for Croatia
Financial guidance -- adjusted for Croatia End-user service revenue unchanged Underlying EBITDAaL unchanged CAPEX (SEKbn excl. spectrum and leased assets) Mid-term ambition 2019 Low-single digit growth Around 2018 level Mid-single digit growth Mid-single digit growth* 2.8-3.3 2.6-2.9 - FMC cross-sel
Slide 25: Leverage at 2.4x
Leverage at 2.4x Economic net debt to underlying EBITDAaL (SEK billion) 27.8 2.8x 25.1 2.6x 26.2 22.1 2.4x Q4'18 Q1'19 Q2'19 Economic net debt Extraordinary dividend Leverage Comments - Economic net debt to underlying EBITDAal 2.4x at end of June, down from 2.6x at end of March due to cash flow gene
Slide 26: To conclude...
TO CONCLUDE... TELE2
Slide 27: Key priorities moving forward
Key priorities moving forward Reignite end-user service revenue growth in Sweden -- B2C: FMC penetration in the customer base -- FMC benefits to be extended to all brands -- Capitalize on positive pricing environment -- B2B: Execute on turnaround Structural cost savings -- Cost synergy target raised
Slide 28: Thank you!
THANK YOU!
Slide 29: 28,881 -953 1,134 1,018 1,188 2,237 1,026 857 Additions to intangible and tangible assets
28,881 368 241 564 -953 349 443 1,134 1,018 1,188 2,237 1,026 857 Additions to intangible and tangible assets -846 -854 -669 -844 -839 -675 -759 -1,129 -1,671 -720 -3,213 -3,403 Acquisition and sale of shares and participations 0 -8 0 669 1 0 -7 -6,400 2,352 2,343 661 -6,406 Other financial assets,