Slide 1: Second Quarter
SECOND QUARTER July 19, 2022
Slide 2: Strong quarter with solid top- and bottom-line growth
Strong quarter with solid top- and bottom-line growth SEK The Group Sweden B2C (YoY growth*) Q2 22 YTD – EUSR growth of 3% during the quarter driven by – Strong mobile postpaid net intake the Baltics and Sweden B2B – Continued growth in fixed broadband primarily 5.0bn 9.9bn – Underlying EBITDAaL gro
Slide 3: Sweden
SWEDEN
Slide 4: Sweden Consumer
Sweden Consumer Mobile postpaid RGU & ASPU Fixed broadband RGU & ASPU Digital TV Cable & Fiber RGU & ASPU Thousand QoQ and YoY growth % Thousand QoQ and YoY growth % Thousand QoQ and YoY growth % +3% +1% +2% +1% +1% +2% +1% 0% +4% -1% 0% +4% +3% +3% +3% +1% +2% +3% +2% +2% +2% +2% 0% -1% +1% -2% -3%
Slide 5: Sweden consumer
Sweden consumer Mobile EUSR Fixed broadband EUSR Digital TV EUSR SEK million, YoY growth % SEK million, YoY growth % SEK million, YoY growth % +5% +4% +3% +4% +2% -2% -2% -4% -4% -3% +2% +2% +1% +2% 0% -1% -2% +3% 0% -1% -8% -8% -9% -9% -9% 242 252 244 249 230 274 267 259 250 250 +2% +3% +2% 0% +1%
Slide 6: Sweden business
Sweden business Mobile RGU & net intake Mobile ASPU End-user service revenue Thousand QoQ and YoY growth % YoY growth % SEK million, YoY growth % -2% +1% +1% +3% +3% +1% +4% +4% +6% +6% +1% +9% 277 259 282 274 279 +8% +4% +6% +6% -1% -10% -5% -7% -10% -10% 231 224 221 212 207 -4% 974 991 1,006 1,037
Slide 7: Sweden financials
Sweden financials End-user service revenue Underlying EBITDAaL & margin Operating cash flow and cash SEK million, YoY growth % SEK million, YoY growth % conversion, rolling 12m, SEK million +4% +5% +2% +1% +7% 0% 0% 0% 0% +1% 39% -2% +1% +1% +3% +3% 37% 36% 36% 65% 66% 64% 65% 66% 962 950 977 973 98
Slide 8: Baltics
BALTICS
Slide 9: Baltics operational highlights
Baltics operational highlights Lithuania – Mobile RGU & ASPU Latvia – Mobile RGU & ASPU Estonia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Thousand QoQ and YoY growth % Thousand QoQ and YoY growth % +11% +9% +12% +12% +10% +7% +8% +9% +8% +7% +8% +9% +7% +5% +3% +3% +3% +4% +4% +3% +3% +2% +5
Slide 10: Baltics financials
Baltics financials End-user service revenue Underlying EBITDAaL & margin Operating cash flow and cash SEK million, YoY growth % SEK million, YoY growth % conversion, rolling 12m, SEK million +12% +13% +14% +10% +12% +6% +8% +13% +10% +7% +16% +15% +12% +16% +13% 497 511 83% 458 478 35% 36% 33% 36% 8
Slide 11: Financial Overview
FINANCIAL OVERVIEW
Slide 12: Group results
Group results Comments SEK million Q2 2022 Q2 2021 1 Underlying EBITDA grew by 3% in the quarter driven by end-user service revenue growth Revenue 6,820 6,572 and cost savings related to the Business Transformation Program, partly offset by Underlying EBITDA 1 2,790 2,686 headwinds related to higher
Slide 13: Group cash flow
Group cash flow Comments SEK million Q2 2022 Q2 2021 1 Capex paid increased compared to last year driven by spectrum payments and Underlying EBITDA 2,790 2,686 higher network capex Items affecting comparability -88 -121 2 Changes in working was negatively Amortization of lease liabilities -275 -270
Slide 14: Leverage at 2.5x
Leverage at 2.5x Economic net debt to underlying EBITDAaL Comments – Economic net debt increased by SEK 0.7 billion compared to end of 2021 as cash generation did not fully offset the first tranche of the ordinary dividend and the extraordinary dividend from the T-Mobile 2.5 2.5 2.5 2.5 Netherlands
Slide 15: Business Transformation Program update
Business Transformation Program update Annualized run-rate Realized in Q2 2022 Annualized run-rate Q2 2022 target H1 2023 Opex Reduction 155 650 >1,000 SEK million Comments – Continued optimization primarily within the technology and IT organization lead to cost reductions in Q2 2022 – Annualized ru
Slide 16: Key priorities going forward
Key priorities going forward Sweden Ramp up roll-out of nationwide 5G and continue Remote-PHY roll-out Execute on Business Transformation program to achieve at least SEK 1bn in annualized run-rate savings by end of H1 2023 Sweden B2C Execute on phase 2 of FMC with the rebranded Tele2 Continue balanc
Slide 17: Thank you!
THANK YOU!
Slide 18: Slide 18