Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — FY2007 Earnings Presentation
22 slides from Telia Company AB's earnings presentation, February 2008
Slide 1: Year-end Report 2007
Year-end Report 2007 Lars Nyberg President and CEO
Slide 2: Investing in future growth
Investing in future growth Year 2007 in brief • Good top-line growth and bottom-line development throughout the year • EBITDA under pressure in each quarter – Investments in growth, incl. Spain – Price erosion and regulatory intervention – Fixed-voice decline – Acquisitions • Expanded presence in Eu
Slide 3: Intensified efficiency measures
Intensified efficiency measures • Efficiency measures to be implemented primarily in Sweden and Finland during 2008 and 2009 are estimated to give an annual gross savings of approx. SEK 5 billion compared to the cost base of 2007 • About 2/3 will be implemented during 2008 and 1/3 during 2009 • It i
Slide 4: Yoigo in Spain – first year targets reached
Yoigo in Spain – first year targets reached • Continue executing our plan in Spain, according to communicated targets – Operation expected to be cash flow positive and earnings accretive within five years – Target to reach just below 1 million subscriptions by end of 2008 – Estimated EBITDA* loss fo
Slide 5: Group Outlook for 2008
Group Outlook for 2008 Net Sales are expected to show stable growth in the financial year 2008 compared to the previous year EBITDA-margin despite continued aggressive investments in future growth and in the quality of our networks and services, TeliaSonera’s ambition for 2008 is to maintain the EBI
Slide 6: Capital structure and proposed dividend
Capital structure and proposed dividend • Target a solid investment grade long-term credit rating (A- to BBB+) • TeliaSonera’s dividend policy is to distribute at least 40% of net income attributable to shareholders of the parent company • Excess capital shall be returned to shareholders, after the
Slide 7: Year-end Report 2007
Year-end Report 2007 Kim Ignatius Executive Vice President and Chief Financial Officer
Slide 8: Investing in future growth
Investing in future growth SEK million FY 2007 Q4 2007 • Net sales 96,344 (91,060) 24,921 (23,187) – Net sales in local currencies +6.3% +6.8% • EBITDA-margin 32.2% (35.4) 28.9% (33.5) • Income from associated companies and JVs 7,697 (5,579) 1,964 (1,555) • Net financials -904 (-263) -289 (-90) • In
Slide 9: FY2007 Net Sales +5.8%
FY2007 Net Sales +5.8% SEK million • Increased sales in Sergel • Internal trade growing in and other Holding entities line with external sales • Acquisition of Cygate, Didata and +1,830 +120 -418 Crescom +845 96, 344 +789 +393 +2,570 • Growth in Kazakhstan and Azerbaijan • Acquisitions in Tajikistan
Slide 10: FY2007 Operating Income
FY2007 Operating Income SEK million • Decreased margins in sales to large corporate • Higher income from associated companies in Russia +1,400 and Turkey +687 • Net sales +2,570 • Increased earnings in consolidated • Improved earnings in Finland and Sweden operations • Declined earnings in Norway, D
Slide 11: Q4 2007 Net Sales +7.5% Year-on-Year
Q4 2007 Net Sales +7.5% Year-on-Year SEK million • Increased sales in • Internal trade growing in Holding entities line with external sales • Acquisition of Cygate, didata and Crescom +295 +622 +79 -177 24,921 +291 +1,049 -130 • Growth in Kazakhstan and Azerbaijan • Acquisitions in Tajikistan and Uz
Slide 12: Q4 2007 Operating Income Year-on-Year
Q4 2007 Operating Income Year-on-Year SEK • Net sales -130 • Higher income from associated million • Cost savings in Sweden and Finland companies in Russia +272 and Turkey • Increased cost for growth initiatives in Sweden and Finland +189 • Sweden release of interconnect provisions +76 (net) • Limit
Slide 13: Statement of cash flows
Statement of cash flows Oct-Dec Oct-Dec SEK million FY2007 FY2006 2007 2006 EBITDA excluding non-recurring items 31,021 32,266 7,208 7,766 Dividends received from associated companies 2,684 1,789 - - Interest paid (net) -886 -595 -304 -68 Income taxes paid -5,142 -2,382 -1,506 -1,083 Payment of rest
Slide 14: Strengthened positions and influence in Eurasia
Strengthened positions and influence in Eurasia • In December 2007, TeliaSonera finalized the negotiations to introduce a local partner to its Uzbek mobile operator Coscom – In the transaction TeliaSonera received certain assets, in exchange for 26% of TeliaSonera’s 100% ownership in Coscom and a ne
Slide 15: Strong financial key ratios
Strong financial key ratios Dec 31, 2007 Dec 31, 2006 Return on equity* 18.6% 17.2% Return on capital employed* 19.4% 19.5% Equity/asset ratio 50.3% 49.9% Net debt/equity ratio 31.8% 15.0% * Rolling 12 months High yielding share One of the best rated Telecom Operators in Europe 15
Slide 16: The Nordic and Baltic telecommunications
The Nordic and Baltic 4 telecommunications 2a Tel iaSone Ta
Slide 17: Appendix
Appendix TeliaSonera
Slide 18: Key Financials – Income Statement and Cash Flow
Key Financials – Income Statement and Cash Flow Oct-Dec Oct-Dec SEK million FY2007 FY2006 2007 2006 Net sales 96,344 91,060 24,921 23,187 Gross profit 42,148 42,420 10,313 9,918 Margin (%) 43.7 46.6 41.4 42.8 EBITDA excl. non-recurring items 31,021 32,266 7,208 7,766 Margin (%) 32.2 35.4 28.9 33.5 O
Slide 19: Q4 2007 Net Sales vs Q3 2007 +0.5%
Q4 2007 Net Sales vs Q3 2007 +0.5% SEK million • Normal seasonality for corporate customers 24,798 -95 +226 0 +36 -32 24,921 -12 • One-offs in Swedish Wholesale, mainly related to price adjustment on regulated national products -120 partly offset by strong sales in International Carrier • Normal neg
Slide 20: Q4 2007 Operating Income vs Q3 2007
Q4 2007 Operating Income vs Q3 2007 SEK million • Increased Opex due to seasonality in wages, sales and marketing • Release of interconnect provisions in Q4 +389 • Mainly restructuring charges 8,354 -761 -171 -327 -13 -724 6,358 -300 6,058 • Seasonal increase of personnel related expenses • Increase
Slide 21: 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 22: The Nordic and Baltic telecommunications
The Nordic and Baltic 4 telecommunications ms Tel iaSone Ta