Slide 1: First Quarter
FIRST QUARTER April 22, 2021
Slide 2: Solid quarter with disciplined focus and delivery
Solid quarter with disciplined focus and delivery SEK (YoY growth) Q1 21 The Group Sweden B2C – Roughly flat EUSR growth excluding pandemic – Continued growth in postpaid and broadband impact despite pandemic 4.7bn – Underlying EBITDAaL growth of 6% driven by – Initiated price adjustments on mobile
Slide 3: Sweden
SWEDEN TELE2
Slide 4: Sweden Consumer
Sweden Consumer RGUs & net intake - core and legacy services ASPU year-on-year growth End-user service revenue (thousand) (%) (SEK million, year-on-year growth %) 4% +2% +1% +1% +2% +1% +38 +23 +36 -4 -7 2% 0.9% 415 424 420 442 413 657 664 662 657 -9% -6% -5% 662 -5% -11% -3 -5 +7 -2 -5 0% +1 -0.1%
Slide 5: Sweden Business
Sweden Business Mobile RGUs & net intake Mobile ASPU End-user service revenue (thousand) (SEK) (SEK million, year-on-year growth %) 200 -6% -6% -9% 180 -8% -5% +31 -11 +11 +18 -4 262 265 265 160 -0% 250 259 -6% -3% -8% -1% 135 140 249 258 238 -15% 235 234 -7% -13% -12% -6% 950 940 936 947 964 120 10
Slide 6: Sweden overview
Sweden overview End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, year-on-year growth %) (SEK million) conversion, rolling 12m (SEK million) +4% -1% -3% -4% -3% -3% 1,994 1,904 100% 1,000 2,000 1,788 1,782 1,864 980 940 969 946 90% -6% -6% -8% -9% -5%
Slide 7: Baltics
BALTICS
Slide 8: Baltics – Operational highlights
Baltics – Operational highlights RGUs & net intake – mobile services Mobile ASPU year-on-year growth (thousand) (%) 13% -30 -33 +80 -12 +8 11% 9% +10% 7% 1,878 1,853 1,889 1,884 1,882 5% 3% +3% +2% 1% 976 970 981 -1% 950 942 -3% 428 428 438 437 436 -5% Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ’21 Q1 ’20 Q2 ’2
Slide 9: Baltics – Financials
Baltics – Financials End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, year-on-year organic growth %) (SEK million) conversion, rolling 12m (SEK million) +17% +10% +6% +7% +8% +8% 600 80% 477 70% 500 444 444 450 394 404 414 420 409 406 60% 400 50% +10
Slide 10: Financial Overview
FINANCIAL OVERVIEW
Slide 11: Revenue breakdown
Revenue breakdown SEK million excl roaming1 Q1 Q1 YoY YoY % Comments 2021 2020 abs (organic) 1 Continued strong momentum in Mobile 1,404 1,391 13 1% mobile postpaid (ex roaming), driven Postpaid 1 1,173 1,134 40 3% by both volume growth and price adjustments during last year Prepaid 230 257 -27 -10%
Slide 12: Group results
Group results Comments SEK million Q1 2021 Q1 2020 1 Underlying EBITDA increased by 6% organically as Revenue 6,550 6,581 growth in the Baltics, opex reduction related to the business transformation program, lower commercial Underlying EBITDA 1 2,630 2,501 spend in Sweden and bad debt provisions in
Slide 13: Group cash flow
Group cash flow Comments SEK million Q1 2021 Q1 2020 1 Capex paid includes a SEK 333 million payment for the Continuing operations 100 MHz that Tele2 bought in the 3.5 GHz spectrum auction in January 2021 Underlying EBITDA 2,630 2,501 Items affecting comparability -69 -39 2 Taxes paid included repai
Slide 14: Leverage at 2.5x
Leverage at 2.5x Economic net debt to underlying EBITDAaL* Comments (SEK billion) 2.3 – Economic net debt decreased by SEK 0.8bn compared to 21.4 Q4 2020 driven by cash generation in the quarter 2.3 – Leverage of 2.5x was in the lower end of the target range 2.6 of 2.5-3.0x ahead of dividend payout
Slide 15: Business transformation program update
Business transformation program update Benefits in Q1 2021 Run rate Q1 2021 Target 2021* Target 2022* Opex Reduction 70 300 ~500 >1,000 (SEK million) Comments – Annualized run-rate at end of Q1 2021 of SEK 300 million (SEK 250m as of Q4 2020). Savings of 70 million filters through in Q1 2021 – Cost
Slide 16: To conclude...
TO CONCLUDE...
Slide 17: Key priorities going forward
Key priorities going forward Sweden: Ramp up roll-out of nationwide 5G and Remote-PHY Sweden B2C: Consolidate premium brands in Q2 2021 and continue execution of more-for-more strategy Sweden B2B: Utilize new portfolio to drive sales in Small segment and optimize profitability in Large Enterprise Ba
Slide 18: Thank you!
THANK YOU! TELE2
Slide 19: TELE
TELE