Slide 1: Fourth Quarter 2023
• Fourth Quarter 2023 January 30, 2024 Information Classification: Internal
Slide 2: Highlights
• 2 Highlights Strong end of 2023 with 4% organic EBITDAaL growth in Q4 • 2023 guidance delivered • Ordinary dividend proposal of SEK 6.90 per share, backed by strong equity free cash flow • Launch of Strategy Execution Program including SEK 600 million of cost reduction • Information Classification
Slide 3: Strong end of 2023 – Guidance delivered
• Strong end of 2023 – Guidance delivered Sweden B2C in Q4 • Solid volume growth in Mobile postpaid driven by lower churn and strong sales of Unlimited propositions • Solid EUSR growth in connectivity with Fixed broadband at 8% and Mobile postpaid accelerating to 5% • Sweden B2B in Q4 • Continued so
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden consumer: Growth in volume and value
• 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: Growth in volume and value Mobile postpaid RGU & ASPU Thousand QoQ and
Slide 6: Sweden consumer: Solid EUSR growth in 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: Solid EUSR growth in connectivity Mobile EUSR SEK million, YoY growth % Q4 highlights • Mobile EUSR grew 3% due t
Slide 7: Sweden business: Continued healthy topline growth
• Fixed Solutions Mobile Mobile ASPU YoY growth % End-user service revenue SEK million, YoY growth % Sweden business: Continued healthy topline growth Mobile RGU & net intake Thousand QoQ and YoY growth % Q4 highlights • EUSR growth of 2%. Adjusted for a one-off deal in Solutions in Q4 2022, growth
Slide 8: Business Sweden financials: Healthy EBITDAaL growth
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Business Sweden financials: Healthy EBITDAaL growth End-user service revenue SEK million, YoY growth % Q4 highlights • EUSR grew by 2% driven by solid performance in both B2C a
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 % Q4 highlights • The overall Baltic mobile postpaid customer base continued to increase • Continued stron
Slide 11: Baltics financials: Continued strong performance
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Latvia Baltics financials: Continued strong performance End-user service revenue SEK million, YoY growth % Lithuania Q4 highlights • Continued strong end-user service revenue gr
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 • Income tax increased due to higher taxable profits and because last year was positively impacted by a tax reduction relating to investments made during the p
Slide 14: Group cash flow
Group cash flow • Group cash flow Comments • Capex paid increased due to high capex levels and spectrum payment • Changes in working capital in the quarter were mainly impacted by seasonally high levels of equipment funding • Net financial items paid increased due to higher interest rates both on lo
Slide 15: Leverage at 2.5x
Leverage at 2.5x • Leverage at 2.5x Comments • Economic net debt remained unchanged compared to year-end 2022 as the cash generated in the business corresponded to the payout of the ordinary dividend • Leverage of 2.5x was at the lower end of the target range of 2.5-3.0x • Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’2
Slide 16: IT Migration: Ready for Next Phase of Strategy Execution
• IT Migration CX & Go to Market 3rd Party Retail Own (Digital) Channels Volume Value Legacy platforms Digital capabilities 2020 Q1 2024 2026 16 Ready for Next Phase of Strategy Execution Information Classification: Internal
Slide 17: Launch of Strategy Execution Program (SEP)
• 17 • Radical improvements in customer experience and value will generate operational efficiency Efficiency as enabler • SEK 600 million of cost reduction in three years • Executed from Q1 2024 to Q4 2026 with relatively linear delivery of cost reduction • SEK 600m or less of restructuring costs •
Slide 18: Financial outlook
Financial outlook • Financial outlook Underlying EBITDAaL1 End-user service revenue1 1-3% 3-4% Capex to sales2 13-14% 18 2024 guidance Mid-term outlook Low to mid- single-digit Mid-single-digit 10-12% 1) Organic growth rate • 2) Excluding spectrum and leases Capex to sales of 13-14% in 2025 as we fi
Slide 19: Enabling a society of unlimited possibilities
• Enabling a society of unlimited possibilities Each era brings its own limitations. Breaking them means breaking new ground. We have always challenged limitations to realize new possibilities for our customers and society at large. • Today, we are deeply connected to the digital lifestyle of societ