Slide 1: First Quarter 2023
• FIRST Quarter 2023 April 21, 2023 Information Classification: Internal
Slide 2: Highlights and achievements
• 2 Highlights • Continued topline growth momentum • Build-out of real 5G and IT transformation well on track • Working capital stabilized and strong EFCF • Achievements • Tele2 #1 in Sweden, top 1% globally, for gender equality • Tele2 Sweden stores #1 in service among the top 100 retailers • Tele2
Slide 3: Strong topline growth and equity free cash flow in Q1
• Strong topline growth and equity free cash flow in Q1 Sweden B2C • Positive net intake for mobile postpaid and fixed broadband • Stable end-user service revenue as growth across core services was offset by declining legacy services • Broad-based back-book price adjustments have been communicated S
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden consumer: Solid volume growth
• 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: Solid volume growth Mobile postpaid RGU & ASPU Thousand QoQ and YoY gr
Slide 6: Sweden consumer: Growth across core services
• 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: Growth across core services Mobile EUSR SEK million, YoY growth % Q1 highlights • Mobile end-user service revenue
Slide 7: Sweden business: Sustained topline growth
• Mobile ASPU YoY growth % End-user service revenue SEK million, YoY growth % Mobile Sweden business: Sustained topline growth Mobile RGU & net intake Thousand QoQ and YoY growth % Fixed Solutions Q1 highlights • Continued strong and broad-based end-user service revenue growth of 5%. Adjusted for a
Slide 8: Business Sweden financials: Building for the future
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Business Sweden financials: Building for the future End-user service revenue SEK million, YoY growth % Q1 highlights • End-user service revenue grew by 1% driven by a strong pe
Slide 9: Baltics
• Baltics Information Classification: Internal
Slide 10: Baltics operational highlights: Strong ASPU growth
• Mobile RGUs Latvia – Mobile RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Baltics operational highlights: Strong ASPU growth Estonia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Q1 highlights • The mobile postpaid customer bases continued to increase across markets during the quart
Slide 11: Baltics financials: Strong numbers across the board
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Latvia Baltics financials: Strong numbers across the board End-user service revenue SEK million, YoY growth % Lithuania Q1 highlights • Continued strong end-user service revenue
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Group results
Group results • Group results Comments • Associated companies and JVs decreased as a result of the divestment of T-Mobile Netherlands in 2022 • Net interest and other financial items decreased somewhat as last year was impacted by FX losses from hedges related to the T-Mobile Netherlands transaction
Slide 14: Group cash flow
Group cash flow • Group cash flow Comments • Capex paid increased due to higher network investments • Changes in working capital this year was positively impacted by lower inventory levels • Taxes paid declined as last year was negatively impacted by timing of final tax payments relating to 2020 • E
Slide 15: Leverage at 2.4x
Leverage at 2.4x • Leverage at 2.4x Comments • Economic net debt decreased by SEK 1.1 billion compared to year-end 2022 • Leverage of 2.4x is below the target range of 2.5-3.0x ahead of the proposed first tranche of the ordinary dividend. Adjusted for this, leverage would have been 2.7x • Proposed o
Slide 16: Business Transformation Program update
Business Transformation Program update • Business Transformation Program update Annualized run-rate Q1 2023 Realized in Q1 2023 Annualized run-rate target H1 2023 Opex Reduction SEK million Comments • Continued optimizations within networks and legacy IT in Q1 2023 • Annualized runrate at end of Q1
Slide 17: Key priorities going forward
Key priorities going forward • Key priorities going forward Growth Keep profitable growth momentum in the business during time of turmoil • Continued investments in network infrastructure Rollout of real 5G and Remote-Phy • Efficiency Reach targeted transformation savings, all main brands on the sam
Slide 18: Enabling a society of unlimited possibilities
• Enabling a society of unlimited possibilities We believe in unleashing the unlimited opportunities that connectivity provides, to all our customers, no matter where they are or when they need it. Information Classification: Internal