Slide 1: Second Quarter 2023
• SECOND Quarter 2023 July 18, 2023 Information Classification: Internal
Slide 2: Q2 highlights
• 2 Q2 highlights Continued topline growth momentum • Solid cash generation in H1 – supporting our attractive shareholder remuneration • High pace in IT transformation and rollout of real 5G • Ranked Europe’s #1 Climate Leader by the Financial Times • Updated metrics for 2023 guidance and mid-term a
Slide 3: Strong topline growth and equity free cash flow in Q2
• Strong topline growth and equity free cash flow in Q2 Sweden B2C in Q2 • Solid net intake for mobile postpaid and fixed broadband • Strong end-user service revenue growth in core connectivity • More back-book pricing effects in coming quarters Sweden B2B in Q2 • Continued solid and broad-based end
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: Strong growth in core connectivity
• 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: Strong growth in core connectivity Mobile EUSR SEK million, YoY growth % Q2 highlights • Mobile end-user service
Slide 7: Mobile 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 Q2 highlights • Continued solid and broad-based end-user service revenue growth of 5% • Net intake of 1
Slide 8: Business Sweden financials: Topline growth improving
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Business Sweden financials: Topline growth improving End-user service revenue SEK million, YoY growth % Q2 highlights • End-user service revenue grew by 2% driven by continued
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 % Q2 highlights • The mobile postpaid customer bases continued to increase across markets, and so did all
Slide 11: Baltics financials: Outstanding track record
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Latvia Baltics financials: Outstanding track record End-user service revenue SEK million, YoY growth % Lithuania Q2 highlights • Continued strong end-user service revenue growth
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Group results
Group results • Group results Comments • Net interest and other financial items increased due to higher financing costs for outstanding debt despite a SEK 77 million other financial gain related to bond repurchase • 1 13 Information Classification: Internal
Slide 14: Group cash flow
Group cash flow • Group cash flow Comments • Capex paid increased slightly due to higher network investments • Changes in working capital were mainly impacted by lower levels of equipment receivable • Net financial items paid increased due to higher interest rates both on loans and leases • Equity f
Slide 15: Leverage at 2.6x
Leverage at 2.6x • Leverage at 2.6x Comments • Economic net debt increased by SEK 0.2 billion compared to year-end 2022. The first tranche of the ordinary dividend was largely covered by cash generated in the business • Leverage of 2.6x remains in the lower part of the target range of 2.5-3.0x • In
Slide 16: Business Transformation Program completed on target
Business Transformation Program completed on target • Business Transformation Program completed on target Annualized run- rate Q2 2023 Realized in Q2 2023 Annualized run-rate target H1 2023 Opex Reduction SEK million Comments • Continued optimizations within networks and legacy IT in Q2 2023 • Annua
Slide 17: 2023 financial guidance
2023 financial guidance • 2023 financial guidance Underlying EBITDAaL End-user service revenue New Low-single digit growth Low to mid-single digit growth Annual capex1 <14% of revenue Previous Upper end of SEK 2.8-3.3bn Organic growth rate 1 Excluding spectrum and leases 17 Information Classificatio
Slide 18: Mid-term financial ambition
Mid-term financial ambition • Mid-term financial ambition Underlying EBITDAaL End-user service revenue Mid-single digit growth Low to mid-single digit growth Annual capex1 10-14% of revenue Organic growth rate 1 Excluding spectrum and leases 18 In 2023–2024, we expect capex to sales in the upper end
Slide 19: Key priorities going forward
Key priorities going forward • Key priorities going forward Sustain growth momentum • Continued investments in network infrastructure Rollout of real 5G and Remote-Phy • Healthy remuneration and investment capability Efficient cash flow profile and solid balance sheet allows for healthy shareholder
Slide 20: 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