Telia Company AB · OMXSTO:TELIA
Telia Company AB — H1 2001 Earnings Presentation
26 slides from Telia Company AB's earnings presentation, Aug 16, 2001
Slide 1: Semiannual Report January - June 2001
Semiannual Report January - June 2001 Stockholm, 16 August 2001
Slide 2: Highlights
Highlights Telia achieved double-digit growth for comparable units, +10% during Q2 Strong growth in our core business Mobile +59% International Carrier +34% Internet Services +32% Networks +2% The number of broadband customers increased during Q2 by 66,000 to 203,000 Telia’s refine a
Slide 3: Broadband expansion
Broadband expansion Narrowband Internet subscriptions Paying broadband customers increased by 11% from 652,000 H1 2000 to 724,000 H1 2001 (‘000) 120 90 60 30 0 1999 Q1 Q2 Q3 Q4 Q1 Q2 2000 2000 2000 2000 2001 2001 High-speed Internet via cable ADSL/ LAN Sweden Denmark Telia AB, IR, 010-2001 eng 3
Slide 4: Mobile
Mobile Q2 sales growth +59% Robust improvement in profitability in underlying EBITDA +139% Norway +35% *) • First UMTS call made Exceptionally strong Finland +60% customer growth in the • Dual-prepaid launched Baltic states and Russia Sweden +16% • Telia’s mobile network Denmark +91% best in all cat
Slide 5: Mobile
Mobile Total proportional Customer growth H1 customer base 5.1 million Customer base, Finland Nordic countries 167,000 Russia 4,728,000 +18,000 North West GSM (12.7% + 11.3%) +175,000 through Telecominvest 366,000 ** Sweden +113,000 3,323,000 2) +66,000 GSM customer growth Customer base, +99,000 Bal
Slide 6: Mobile Sweden ARPU and MoU
Mobile Churn 7% Sweden ARPU (SEK) 500 426 446 436 426 432 419 418 415 375 394 400 Subscription 300 348 330 331 333 314 306 304 303 Total 200 273 280 100 Prepaid 121 119 108 109 123 106 108 101 96 101 0 Q2 Q2 Q2 1999 2000 2001 MoU (minutes) 200 167 170 175 164 160 162 141 150 155 Subscription 150 126
Slide 7: Mobile Norway ARPU and MoU
Mobile Churn 29% Norway ARPU (NOK) 600 528 534 486 485 496 487 460 500 406 444 444 Subscription 400 300 337 Total 320 325 305 301 327 308 317 200 289 292 100 136 142 152 147 Prepaid 118 124 127 119 107 115 0 Q2 Q2 Q2 1999 2000 2001 MoU (minutes) 250 223 225 225 208 182 196 190 198 196 Subscription 2
Slide 8: Mobile SMS growth
Mobile Share of sales Q2 2001 Continued growth for SMS Sweden 4%, Norway 13% 500 Norway 2001 Norway 2000 250 Sweden 2001 Sweden 2000 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Telia AB, IR, 010-2001 eng 8
Slide 9: Mobile: Rapid launch of new services
Mobile Rapid launch of new services bikePosition Nära dig Väder Nära dig MobileNation MC information on the road Weather forecasts for New youth site for the area where you are mobile services Posten Nära dig Microbetalningar Mobil Mejl P Helps you find the postal service Make payments using Send an
Slide 10: International Carrier
International Carrier Key events Q2 Robust growth in capacity business +453% Strong growth in IP business +77% Decision to continue expansion in the Middle East and Eastern Europe TAT 14 brought into service Renewed positive development in Voice business Renegotiated IRU agreement valued
Slide 11: International Carrier: Rapid completion of network
International Carrier Rapid completion of network Network in service: Infrastructure network expansion 30 June 2001 Total fibre network km (in use) 26,000 Ducts km (Europe) 8,000 PoPs (total) 62 Network investments (MSEK): Telia’s investments 9,714 Market value swaps 3,427 Telia AB, IR, 010-2001 eng
Slide 12: Networks
Networks Revenues climbed 2% during Q2 Fixed network in Finland divested Danish network operator Finland Powercom acquired Telia Finland OY divested Continued focus on streamlining costs, broadband and other value-added services Denmark Powercom acquired Telia AB, IR, 010-2001 eng 12
Slide 13: Continued refine and focus strategy
Continued refine and focus strategy Sale of 51% in: Swedia Networks AB Telia Prosoft AB Respons AB Validation AB Telia Swedtel AB 13 Telia Dokumentation AB Multicom Security AB June Smålands- IN good TA Teleadress company AB börsen Data AB Information AB Starman Kaabel- Telia
Slide 14: Associated companies
Associated companies • Capital gain upon • Eircell divested to • Write-down of sale MSEK 2,623 Vodafone remaining goodwill in Netia • Share of earnings • Vodafone shares MSEK -1,820 2000: GSEK -1.6 sold for MSEK 3,500 • Share of earnings 2000: MSEK -411 • Telia accepted offers totaling MSEK 3,900 •
Slide 15: Continued refine and focus strategy
Continued refine and focus strategy Reduced number of employees 50,000 46,213 31 Dec 1991 40,000 22,468 30 June 2001 30,000 20,000 31 December 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Telia AB, IR, 010-2001 eng 15
Slide 16: Outlook for 2001
Outlook for 2001 Continued robust growth in sales and earnings in our core business Continued strong implementation of the refine and focus strategy Telia AB, IR, 010-2001 eng 16
Slide 17: The Telia Group in Brief
Financial overview The Telia Group in Brief Q2 Q2 H1 H1 (MSEK) 2000 2001 2000 2001 Net sales 13,180 14,203 26,037 27,795 Underlying EBITDA 2,857 3,014 6,117 6,362 - margin % 21.7 21.2 23.5 22.9 Operating income 488 988 3,870 1,799 Earnings per share (SEK) 0.10 0.08 0.94 0.18 Telia AB, IR, 010-2001 e
Slide 18: Effects of the refine and focus strategy
Financial overview Effects of the refine and focus strategy (Equity) (MSEK) Sales (MSEK) Underlying EBITDA 4,000 1,000 858 3,213 800 3,000 600 2,000 1,750 414 400 1,120 215 1,000 200 0 0 H1 2000 H1 2001 H1 2001 H1 2000 H1 2001 H1 2001 Remaining Remaining companies companies Telia AB, IR, 010-2001 en
Slide 19: Group net sales
Financial overview Group net sales Quarterly (MSEK) Rolling (MSEK) 16,000 58,000 14,000 56,000 12,000 54,000 10,000 52,000 8,000 50,000 6,000 48,000 4,000 46,000 2,000 44,000 0 42,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 98 98 98 99 99 99 99 00 00 00 00 01 01 Telia AB, IR, 010-2001 eng 19
Slide 20: External net sales, Q2
Financial overview External net sales, Q2 (MSEK) Change % 15,000 Mobile +58.6 12,000 2,525 4,004 International Carrier +33.9 649 869 Networks +2.1 9,000 6,000 7,560 Internet Services +32.2 7,722 Equity -57.6 3,000 615 813 1,776 753 Group-wide -23.6 55 42 0 Q2 2000 Q2 2001 Total for the Group +7.8 of
Slide 21: Underlying EBITDA, Q2
Financial overview Underlying EBITDA, Q2 (MSEK) Change % 4,000 Mobile +139.0 471 1,126 3,000 23 International Carrier n/m 2,000 2,480 Networks +8.1 2,680 1,000 Internet Services +58.3 689 95 Equity -86.2 0 - 403 - 318 - 403 - 168 Group-wide +21.1 -1,000 -401 Q2 2000 Q2 2001 Total for the Group +5.5
Slide 22: Share of earnings in associated companies
Financial overview Share of earnings in associated companies (MSEK) H1 2000 H1 2001 2000 Netia Holdings (Networks) -167 -1,922 -411 Baltic states (Mobile/Networks) 72 80 190 Unisource/AUCS (Networks) 1,063 -110 1,445 Comsource/Eircom (Networks) -520 -966 -933 Telia Overseas (Equity) -643 2,601 -1,71
Slide 23: Market value, associated companies
Financial overview Market value, associated companies Participation Book Market (%) value value (MSEK) per 30 June per 14 Aug Eniro AB (Sweden) 49,1 1,453 8,144 Scandinavia Online AB (Sweden) 24,6 263 67 AS Eesti Telekom (Estonia) 24,5 587 1,122 AB Lietuvos Telekomas (Lithuania) 30,0 2,622 848 Netia
Slide 24: CAPEX
Financial overview CAPEX (MSEK) Q2 Q2 H1 H1 2000 2001 2000 2001 Mobile 342 681 576 1,187 International Carrier 1,966 1,111 2,454 2,258 Networks 1,263 1,445 2,002 2,881 Internet Services 125 240 232 476 Equity 534 207 810 485 Group-wide -389 -18 -48 -53 Total for the Group 3,841 3,666 6,026 7,234 Tel
Slide 25: Financial position
Financial overview Financial position 31 Dec 31 Mar 30 June 2000 2001 2001 Net interest-bearning liability (MSEK) 20,235 24,425 19,069 Balance sheet total (MSEK) 122,715 127,062 130,192 Debt/equity ratio (multiple) 0.37 0.42 0.33 Equity/assets ratio (%) 44.4 45.3 44.4 Telia AB, IR, 010-2001 eng 25
Slide 26: Change in net liability
Financial overview Change in net liability (MSEK) 35,000 9,234 7,405 30,000 25,000 6,362 20,235 1,078 1,501 788 19,069 20,000 15,000 10,000 5,000 0 1 Jan Tax Net Divest- Under- Dividend Other 30 June 2001 invest- itures lying 2001 ments EBITDA Telia AB, IR, 010-2001 eng 26