Telia Company AB · OMXSTO:TELIA
Telia Company AB — Q3 2000 Earnings Presentation
28 slides from Telia Company AB's earnings presentation, Nov 9, 2000
Slide 1: Interim Report January – September 2000
Interim Report January – September 2000 November 9, 2000
Slide 2: Marianne Nivert, President and CEO
Marianne Nivert President and CEO
Slide 3: High-growth areas
High-growth areas Mobile Leading Nordic mobile player Carrier Focus on core business and One of the leading carriers in Europe streamlining Broadband Leading broadband provider Interim Report 9 November 2000 3
Slide 4: Trends January–September 2000
Trends January–September 2000 Net sales +6% (+15% in Q3) Strong sales in high-growth areas Operating income +18% Underlying EBITDA totaled MSEK 9,297 Substantial investments affected earnings Eniro listed on the OM Stockholm Exchange in October Interim Report 9 November 2000 4
Slide 5: Increased growth
Increased growth Period Quarter Jan-Sep Jul-Sep Net sales The Group +6%+15% Mobile +37%+64% International Carrier +27%+64% Skanova +66%+100% Internet, Sweden +24%+27% Strong mobile growth +1.5 million mobile customers International Carrier signs contracts worth MSEK 8,200 Interim Report 9 Nove
Slide 6: Initiatives
Initiatives Cost taken for new services and geographical expansion over the P/L Statement MSEK 5000 4000 Rest of world 2577 3000 2000 1450 1161 Nordic countries 1000 1140 1308 New services 320 0 1999 Jan-Sep 2000 Interim Report 9 November 2000 6
Slide 7: The mobile footprint
The mobile footprint Customers Nordic countries 4,363,000 +1,522,000 Finland 127,000 Customers +94,000 Telia Overseas 1,415,413 Sweden 3,147,000 +563,516 +509,000 Russia North West GSM (12.7% + 9.5%) through Telecominvest 195,000 Norway +69,000 (100%) 810,000 +37,000*) Eesti Mobiilitelefon (24.5%) C
Slide 8: Customer growth
Customer growth 3,200,000 830,000 Sweden Norway 2,950,000 730,000 2,700,000 630,000 2,450,000 3,147,000 810,000 530,000 2,200,000 Apr-99 Apr -00 Aug -99 Dec -99 Aug -00 Dec -98 Apr-99 Aug -99 Dec -99 Apr -00 Aug -00 Dec -98 300,000 1 5 0,0 0 0 Denmark Finland 250,000 1 0 0,0 0 0 200,000 279,000 127,
Slide 9: ARPU
ARPU Churn 7% Sweden, SEK Norway, NOK 600 600 531 486 489 446 443 444 459 419 426 436 426 418 406 375 400 400 330 348 331 333 326 337 329 314 306 304 320 305 303 289 200 200 136 142 152 147 121 119 109 123 119 124 127 101 108 96 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1999 1999 1999 1999 2000
Slide 10: Development of SMS
Development of SMS No. of messages 100,000,000 114,760,000 80,000,000 60,000,000 40,000,000 20,000,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1999 2000 Interim Report 9 November 2000 1 0
Slide 11: International Carrier
International Carrier Net sales +27% (+64% in Q3) Telephony +47% IP +296% Contracts regarding infrastructure and network capacity signed worth MSEK 8,200 The fiber-optic network in Europe increases from 6,815 km to 7,513 km Interim Report 9 November 2000 1 1
Slide 12: International Carrier: Infrastructure and capacity, investments vs. sold
International Carrier Infrastructure and capacity, investments vs. sold MSEK 5 000 4 000 3 000 Investments 2 000 Sold/swapped 1 000 0 Ducts Fiber DWDM Interim Report 9 November 2000 1 2
Slide 13: International Carrier: Infrastructure and capacity, sold vs. remaining
International Carrier Infrastructure and capacity, sold vs. remaining Km Km Km 80000 3500000 200000 70000 3000000 60000 150000 2500000 50000 2000000 40000 100000 1500000 30000 20000 1000000 50000 10000 500000 0 0 0 Total Sold/swapped Total Sold/swapped Total Sold Ducts Fiber DWDM In operation Decide
Slide 14: Broadband
Broadband Internet customer growth from 613,000 to 720,000 22,750 broadband customers plus 14,400 in com hem 653,000 potential broadband customers through general agreements Broadband deliveries are speeding up Broadband services will be launched during Q4 Interim Report 9 November 2000 1
Slide 15: Fixed telephony
Fixed telephony Migration from fixed telephony to broadband Growth in sales on the external wholesale market partially compensates the reduction in the retail market New services and efficiency measures compensate the effects of price cuts Sustained underlying EBITDA margin for established f
Slide 16: Focusing on core business
Focusing on core business Listing of Eniro – capital gains of approx. MSEK 6,000 in Q4 Divestitures (wholly/partially): IN good company AB Starman Kaabeltelevisiooni Svefo Telia Contracting Telia Kompetens Telia Konferens Focusing on core business in Telia continues Interim Report 9 November 2
Slide 17: Delivering the strategy
Delivering the strategy Mobile International Carrier Swap agreements with Global Crossing and Acquisition of NetCom ASA Colt 1,522,000 new subscribers in the Acquisition of AGIS – free peering in the US Nordic countries Contracts signed worth MSEK 8,200 Pilot versions of Speedy Tomato la
Slide 18: Bo Jacobsson, CFO
Bo Jacobsson CFO
Slide 19: The quarter in brief
The quarter in brief Jul-Sep Jul-SepChange MSEK 2000 1999 in % External net sales 13,487 11,771 +15 Underlying EBITDA 3,1803,466 -8.3 - margin (%) 23.6 29.4 Operating income 2061,150 -82 Earnings per share (SEK) 0.06 0.30 Investments 16,745 *) 2,121 *) of which NetCom ASA 11,387 Interim Report 9 Nov
Slide 20: Net sales
Net sales MSEK 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1998 1999 2000 Interim Report 9 November 2000 2 0
Slide 21: External net sales, the quarter
External net sales The quarter Total (MSEK) 11 771 13 487 Change in % Mobile +64% 3 596 2 199 Carrier & Networks 836 1 527 +83% Business Solutions 2 911 2 595 -11% People Solutions 4 427 4 041 -9% Enterprises 1 400 1 703 25 +22% -2 Group-wide Jul-Sep Jul-Sep 1999 2000 Interim Report 9 November 2000
Slide 22: Underlying EBITDA, the quarter
Underlying EBITDA The quarter In total (MSEK) 3 466 3 180 Change in % 943 929 Mobile -1,5% Carrier & Networks -10% 1 892 1 705 Business Solutions +60% 186 People Solutions 524 29 -67% 7 174 Enterprises 566 365 -35% -645 -290 Group-wide Jul-Sep Jul-Sep 1999 2000 Interim Report 9 November 2000 2 2
Slide 23: Underlying EBITDA
Underlying EBITDA MSEK 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1998 1999 2000 Interim Report 9 November 2000 2 3
Slide 24: Share of earnings and one-off charges
Share of earnings and one-off charges Share of earnings in assoc. companies Jan–Jun Jul-Sep MSEK 20002000 Netia Holdings (BS) -167-197 Baltikum (Mobile/BS) 7276 Unisource/AUCS (BS) 1,063183 Comsource/Eircom (BS) -520-280 Telia Overseas (Enterprises) -643-444 Other assoc. companies 127-97 Total -68-7
Slide 25: The nine-month period in brief
The nine-month period in brief Jan-Sep Jan-SepChange in MSEK 2000 1999 % External net sales 39,524 37,234 +6.2 Underlying EBITDA 9,297 10,716 -13 - margin (%) 23.5 28.8 Operating income 4,076 3,441 +18 Earnings per share (SEK) 0.99 0.87 Investments 37,431 *) 7,233 *) of which NetCom ASA 22 749 Inter
Slide 26: Cash flow
Cash flow MSEK Jan–Sep 2000Jan–Sep 1999 Cash flow from operating activities 7,3857,852 Cash flow from investing activities -37,840-9,327 Operating cash flow -30,455-1,475 Cash flow from financing activities 30,1331,713 Cash flow for the period -322238 Net interest-bearing liability, closing balance
Slide 27: Financial position
Financial position Sep 30 Dec 31 2000 1999 Net interest-bearing liability (MSEK) 22,3407,527 Balance sheet total (MSEK) 117,52176,604 Debt/equity ratio (multiple) 0.470.24 Equity/assets ratio (%) 40.341.0 Interim Report 9 November 2000 2 7
Slide 28: Outlook
Outlook Mobile Carrier increased traffic as a result of strong growth in all product strong customer growth areas improved margins Broadband Established fixed services strong demand continued price pressure extended delivery capacity strong efficiency measures sustained profitability