Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — Q3 2009 Earnings Presentation
17 slides from Telia Company AB's earnings presentation, October 2009
Slide 1: Interim Report January – September 2009
Interim Report January – September 2009 Lars Nyberg President and CEO 1 Record-high profitability • Highest earnings to date • Revenues in local currencies unchanged • EBITDA margin improved to 36.1 percent (34.7) • Operating income improved 3 percent despite notably lower income from associated com
Slide 2: Market trends per business area; Delivering on cost efficiency
Market trends per business area Mobility Services • Sweden continued to perform well • Strong demand for mobile data and mobile broadband • Still challenging in the Baltic countries Broadband Services • Strong demand for bundled offerings • Positive impact from price increases in Sweden • IP based s
Slide 3: Increased ownership in core holdings; Highest earnings to date
Increased ownership in core holdings • Increased ownership in Eesti Telekom to 97.58 percent (60.12). Squeeze- out process initiated • Increased ownership in TEO LT to 68.08 percent (62.94) of votes and 64.90 percent (60.00) of capital Continue to look for opportunities to increase ownership in core
Slide 4: Q3 2009 in brief
Interim Report January – September 2009 Per-Arne Blomquist Executive Vice President and CFO 7 Record-high profitability Q3 2009 in brief • Net sales SEK 27,069 million (25,817) – Increase +4.8% – Local organic 0% – FX effect 3.8% – Acquisitions 1.0% • EBITDA* SEK 9,763 million (8,949) – Increase +9.
Slide 5: Addressable cost base – Group and Sweden and Finland
Addressable cost base – Group SEK million SEK million 35,000 8,000 -5% 30,000 25,000 6,000 -3% 20,000 +3% 4,000 -19% 15,000 -7% 10,000 2,000 -3% 5,000 0 0 2006 2007 2008 Q1 09 Q2 09 Q3 09 Q3 08 Q3 09 Personnel Marketing IT Rents Other Personnel Marketing IT Rents Other • Rolling 4 quarter values, •
Slide 6: Business area – Mobility Services
Business area – Mobility Services Net sales and EBITDA margin* Operating cash flow** 15,000 -1.7% LC 34% 12,000 24% 12,500 10,000 32% 22% 10,000 8,000 SEK million SEK million 7,500 30% 6,000 20% 5,000 4,000 28% 18% 2,500 2,000 0 26% 0 16% Q3 08 Q3 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net sal
Slide 7: Mobility Services – Other Nordic and Baltic countries
Mobility Services – Other Nordic countries Organic revenue growth, local currency EBITDA* margin 15% 40% 10% 35% 5% 30% 0% 25% -5% 20% -10% 15% -15% 10% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Finland Norway Denmark Finland Norway Denmark • The revenue dec
Slide 8: Business area – Broadband Services
Business area – Broadband Services Net sales and EBITDA margin* Operating cash flow** 12,500 -2.5% LC 8,000 20% 38% 10,000 36% 6,000 18% SEK million 7,500 SEK million 34% 4,000 16% 5,000 32% 2,500 2,000 14% 30% 0 28% 0 12% Q3 08 Q3 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net sales, reported cur
Slide 9: Business area – Eurasia
Business area – Eurasia Net sales and EBITDA margin* Operating cash flow** 5,000 54% 4,000 30% +3.8% LC 4,000 52% 3,000 25% SEK million 3,000 SEK million 50% 2,000 20% 2,000 48% 1,000 15% 1,000 0 46% 0 10% Q3 08 Q3 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net sales, reported currency Operating c
Slide 10: Improvement in operating cash flow; Income taxes
Improvement in operating cash flow Operating cash flow** Operating cash flow** 7,000 25,000 25% 6,000 20,000 20% 5,000 SEK million SEK million 15,000 15% 4,000 3,000 10,000 10% 2,000 5,000 5% 1,000 0 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 0 Operating cash flow** rolling 4 quarters Q1 08 Q2 08
Slide 11: Solid financial position; Interest rate
Solid financial position SEK million 60,000 2.0 50,000 1.5 40,000 30,000 1.0 20,000 0.5 10,000 0 0.0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Net debt Net debt to EBITDA* rolling 4 quarters * Excluding non-recurring items 21 Interest rate SEK million 80,000 6.0% 70,000 5.0% 60,000 4.0% 50,000 40,00
Slide 12: Debt maturity schedule; Strong financial key ratios
Debt maturity schedule (excl. lease and pension liabilities) Debt Maturing next 12 months (SEK million), Sep 30 2009 2,500 2,000 1,500 1,000 500 0 10/09 11/09 12/09 01/10 02/10 03/10 04/10 05/10 06/10 07/10 08/10 09/10 Debt Portfolio Maturity Schedule (SEK billion), Oct 2009 & onwards 10 8 6 4 2 0 -
Slide 13: Group outlook 2009 (unchanged)
Group outlook 2009 (unchanged) Actual Outlook 2009 9M 2009 In line with or slightly Net sales below the level of 2008* 0.0% Below the SEK 33.8 billion Addressable cost base in 2008* -4.8% Exceed the margin level EBITDA margin** of 2008 (31.8%) 33.8% In the range 13-14% CAPEX-to-sales ratio (15.2%) 1
Slide 14: Forward-looking statements; July – September 2009
Forward-looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and
Slide 15: Appreciation of SEK vs. other currencies; January – September 2009
Appreciation of SEK vs. other currencies Revenue growth (%) Reported of which of which of which Q3 2009 growth currency acquisitions organic Mobility Services 3.8 5.5 0.0 -1.7 Broadband Services 2.5 4.1 0.9 -2.5 Eurasia 8.9 0.1 5.0 3.8 The Group 4.8 3.8 1.0 0.0 29 January – September 2009 Jan – Sep
Slide 16: Net sales and EBITDA by business area
Net sales - Group & per Business area Jul – Sep Jul – Sep Change SEK million 2009 2008 % Mobility Services 12,755 12,287 4 Broadband Services 10,780 10,513 3 Eurasia 3,714 3,410 9 Other operations 1,316 1,136 16 The Group 27,069 25,817 5 31 EBITDA* and margin - Group & per Business area EBITDA* Jul
Slide 17: Statement of cash flows
Statement of cash flows Jul – Sep Jul – Sep SEK million 2009 2008 EBITDA excluding non-recurring items 9,763 8,949 Dividends received from associated 1,169 0 companies Interest paid (net) -256 -542 Income taxes paid -790 -1,010 Payment of restructuring provisions -298 -61 Difference between paid/rec