Sonera — Q1 2001 Earnings Presentation
20 slides from Sonera's earnings presentation, Apr 25, 2001
Slide 1: Interim Report January - March 2001
Interim Report January - March 2001 April 25, 2001 Interim report 1-3/2001 1
Slide 2: Content
Content • Financial performance and UMTS projects Kaj-Erik Relander • Progress of new service businesses Juha Varelius • Quarterly performance per business area Kim Ignatius Interim report 1-3/2001 2
Slide 3: Financial performance in January - March
Financial performance in January - March • Consolidated revenues grew by 8% and were MEUR 525 (487) • Earnings grew considerably on the previous year due to gain (286) from the sale of TietoEnator shares • Profit before extraordinary items and taxes was MEUR 245 (113) • Earnings per share rose to EU
Slide 4: Businesses in brief
Businesses in brief • Domestic Mobile Communications had a good first quarter: revenues were up 10% and operating profit 11% • Revenues from Media Communications and New Services grew by 24%, EBITDA was MEUR 89 negative primarily due to outlays on Sonera Zed • Revenues from fixed network Telecom bus
Slide 5: Prospects for the latter part of 2001
Prospects for the latter part of 2001 • Growth in revenues expected to remain at previous year’s level • EBITDA loss from Media Communications and New Services estimated to decrease slightly on the previous year (MEUR 303) • Group’s comparable EBITDA estimated to grow in euro terms on the previous y
Slide 6: New business plan of Group 3G in Germany
New business plan of Group 3G in Germany • Aim to launch services by a GSM and GPRS roaming agreement in the second half of the year • Own network to be built when handsets available • Allowing joint use of UMTS networks would significantly reduce capital expenditure on fixed assets > Group 3G will
Slide 7: Sonera's other 3G markets in Europe
Sonera’s other 3G markets in Europe • Xfera, Spain (launch in 2002) - organization ready, number of personnel 300 - network being built with external non-recourse project financing - possibility of GSM and GPRS roaming is being studied • IPSE 2000, Italy (launch in H1/2002) and • Broadband Mobile, N
Slide 8: Sonera SmartTrust's progress
Sonera SmartTrust’s progress h Revenues grew by 40% on the previous year and were MEUR 6; about 50% of the revenues came from Europe, 35% from Asia and 15% from America h Order backlog was at the end of March MEUR 11 h The reduction in the number of personnel from 540 to about 420 in 2001 announced
Slide 9: Sonera Zed's markets
Sonera Zed’s markets 14 operator agreements bring the services within the reach of 100 million customers on 9 markets: Service launch • Sonera, Finland 2.3 June 1999 • KPN Mobile, Netherlands 4.7 August 2000 • Smart Comm, Philippines 2.6 December 2000 • Mobile One, Singapore 0.6 February 2001 • Radi
Slide 10: Use of zed services in January - March
Use of zed services in January - March • On average 352,000 monthly users in Finland (384,000) • About 800,000 monthly users worldwide • Strong growth in the Philippines: 583,000 users in March • Launches in Germany and the UK from March 19 onwards Interim report 1-3/2001 10
Slide 11: Sonera Zed's revenue target in 2001
Sonera Zed’s revenue target in 2001 • Revenues in January - March MEUR 2 (1), EBITDA MEUR 43 negative (8 negative) • Growth in revenues will accelerate significantly in the latter part of the year but remain much lower than estimated earlier because of a delay in the central market launches in Europ
Slide 12: Other new service businesses
Other new service businesses SONERA INFO COMMUNICATIONS • revenues MEUR 17, EBITDA MEUR 2 • acquired a holding in Metro One, a US directory service company SONERA JUXTO • revenues MEUR 17, EBITDA MEUR 8 negative • Fenestrae chosen as technology partner for implementation of wireless ASP services SON
Slide 13: Consolidated income statement
Consolidated income statement EUR million Q1/2001 Q1/2000 % 2000 Revenues 525 487 8 2,057 EBITDA 384 162 137 2,047 Operating profit 300 90 233 1,748 • Revenues grew by 8% • EBITDA was increased by gain from the sale of TietoEnator shares (gain MEUR 286) • Comparable EBITDA of MEUR 102 was decreased
Slide 14: Consolidated income statement (contd)
Consolidated income statement (contd) EUR million Q1/2001 Q1/2000 % 2000 Equity income in associated (38) 20 n/a 121 companies Net financial expenses (17) 3 n/a (9) Profit before extraordinary items and taxes 245 113 117 1,860 Earnings per share 0.22 0.06 267 2.05 • Net losses of Turkcell and Fintur
Slide 15: Profitability of business areas: Domestic Mobile Communications
Profitability of business areas Domestic Mobile Communications EUR million Q1/2001 Q1/2000 % 2000 Revenues 290 264 10 1,134 EBITDA 144 132 9 543 Operating profit 113 102 11 414 • Non-voice revenues were up 17% in the review period • Profitability was improved by the lower than average marketing expe
Slide 16: Profitability of business areas: Media Communications and New Services
Profitability of business areas Media Communications and New Services EUR million Q1/2001 Q1/2000 % 10-12/2000 Revenues SmartTrust 6 0 n/a 18 Zed 2 1 100 7 Other services 55 50 10 229 Total 63 51 24 254 EBITDA SmartTrust (18) (11) (64) (65) Zed (43) (8) (438) (102) Other services (28) (12) (133) (13
Slide 17: Profitability of business areas: Sonera Telecom
Profitability of business areas Sonera Telecom EUR million Q1/2001 Q1/2000 % 2000 Revenues 245 243 1 1,020 EBITDA 59 63 (6) 300 Operating profit 26 26 0 162 • Revenues from Fixed Network Voice and Data Services were EUR 147 million (148) - domestic voice revenues declined, and international voice re
Slide 18: Associated companies
Associated companies EUR million Equity income in associated companies Q1/2001 Q1/2000 2000 2G mobile associated companies (27) 30 147 3G mobile associated companies (2) - (2) Fixed network associated companies 6 12 38 Other associated companies - 1 4 Amortization of goodwill (15) (23) (66) Total (3
Slide 19: Financial income and expenses
Financial income and expenses EUR million Q1/2001 Q1/2000 Change 2000 Dividend income - 14 -14 21 Interest income 51 4 +47 82 Interest expenses (83) (17) -66 (155) Capitalized interest expenses 15 - +15 20 Other fin. income & expenses 1 1 - 23 Exchange rate gains & losses (1) 1 -2 - Total (17) 3 -20
Slide 20: Financial position
Financial position • At the end of March, net debt was MEUR 5,661 (excl. interest- bearing loan receivables); estimated to decrease significantly within the next 12 months • The current debt of MEUR 3,264 will be reduced significantly as the sales of shares planned for 2001 are implemented • VoiceSt