Slide 1: Fourth Quarter 2022
• fourth Quarter 2022 January 31, 2023 Information Classification: Internal
Slide 2: Highlights and strategic initiatives
Highlights and strategic initiatives • Highlights and strategic initiatives 2022 guidance delivered • End-user service revenue increased by 3.0% organically • Underlying EBITDAaL increased by 3.4% organically – excl. increased energy costs 4.9% • Capex of SEK 3.2 billion • Strategic achievements 202
Slide 3: Q4 highlights by segment and group
• Continued strong top-line growth in Q4 Sweden B2C • Solid net intake for mobile postpaid, fixed broadband and digital TV Cable & Fiber • Stable end-user service revenue as growth across core services offset by declining legacy services • Entertainment package that includes Viaplay has been well re
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden consumer: mobile postpaid, fixed broadband and digital TV RGUs
• Mobile postpaid RGUs Fixed broadband RGU & ASPU Thousand QoQ and YoY growth % Digital TV Cable & Fiber RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Fixed broadband RGUs Digital TV Cable & Fiber RGUs Sweden consumer Mobile postpaid RGU & ASPU Thousand QoQ and YoY growth % Q4 highlights
Slide 6: Sweden consumer end-user service revenue
• Mobile prepaid Fixed broadband EUSR SEK million, YoY growth % Digital TV EUSR SEK million, YoY growth % Mobile postpaid Fixed Broadband Digital TV Cable & Fiber DTT TV Sweden consumer Mobile EUSR SEK million, YoY growth % Q4 highlights • End-user service revenue for Mobile grew 1% driven by a soli
Slide 7: Sweden business mobile and end-user service revenue
• Mobile ASPU YoY growth % End-user service revenue SEK million, YoY growth % Mobile Sweden business Mobile RGU & net intake Thousand QoQ and YoY growth % Fixed Solutions Q4 highlights • Continued strong commercial momentum • Net intake of 26 000 Mobile RGUs driven by improvements across segments an
Slide 8: Business Sweden financials
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, rolling 12m, SEK million Business Sweden financials End-user service revenue SEK million, YoY growth % Q4 highlights • End-user service revenue grew 1% as growth in Sweden B2B, fixed broadband
Slide 9: Baltics
• Baltics Information Classification: Internal
Slide 10: Baltics operational highlights
• Mobile RGUs Latvia – Mobile RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Baltics operational highlights Estonia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Q4 highlights • The mobile postpaid customer base continued to increase during the quarter, while the prepaid customer base
Slide 11: Baltics financials
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, rolling 12m, SEK million Latvia Baltics financials End-user service revenue SEK million, YoY growth % Lithuania Q4 highlights • Continued strong end-user service revenue growth of 11% driven by
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Group results
Group results • Group results 1 4 Comments • Underlying EBITDA grew by 3.7% organically in the quarter driven by end-user service revenue growth and cost savings related to the Business Transformation Program, partly offset by headwinds related to higher energy costs and inflation • Associated compa
Slide 14: Group cash flow
Group cash flow • Group cash flow Comments • Capex paid in Q4 increased compared to last year due to timing in payments and higher network investments • Changes in working capital in Q4 was negatively impacted by higher inventory levels and a temporary lower level of external handset financing • Tax
Slide 15: Leverage at 2.5x
Leverage at 2.5x • Leverage at 2.5x Comments • Economic net debt increased by SEK 1.3 billion compared to year-end 2021 • In total, SEK 13.6 billion was distributed as cash dividend during 2022 of which SEK 11.3 billion was paid in May and SEK 2.3 billion in October • Leverage of 2.5x on December 31
Slide 16: Business Transformation Program update
Business Transformation Program update • Business Transformation Program update Annualized run-rate Q4 2022 Realized in Q4 2022 Annualized run-rate target H1 2023 Opex Reduction SEK million Comments • Continued optimizations within networks and legacy IT in Q4 2022 • Annualized run-rate at end of Q4
Slide 17: Financial guidance
Financial guidance • Financial guidance Comments • 2023 guidance is low-single digit growth in end-user service revenue and low-single digit growth in underlying EBITDAaL. Capex is expected in the range of SEK 2.8-3.3 billion • 2023 guidance is based on growth in all markets and savings from the Bus
Slide 18: Key priorities going forward
Key priorities going forward • Key priorities going forward Growth Keep the profitable growth momentum in the business during time of turmoil • Roll-out of 5G Continued investments in network infrastructure • Efficiency Deliver on the Business Transformation Program • Focus on the digital journey ah
Slide 19: Information Classification: Internal
Information Classification: Internal