Tele2 Ab Class A · OMXSTO:TEL2_A
Tele2 Ab Class A — Merger or Acquisition (July 2005)
10 slides from Tele2 Ab Class A's merger presentation, Jul 18, 2005
Slide 1: Recommended Cash Offer for Versatel Telecom International N.V.
Recommended Cash Offer for Versatel Telecom International N.V. July18, 2005 Lars-Johan Jarnheimer President and CEO Tele2
Slide 2: Highlights
Highlights Highlights Highlights Highlights Versatel Rationale § Recommended cash offer for all outstanding shares and simultaneous cash offer for all outstanding convertible notes in Versatel § Total offer value based on €2.20 per share is €1,340 million (based on fully diluted shares) – Implied en
Slide 3: Key Attractions for Tele2: Transaction transforms Benelux operations
Key Attractions for Tele2 Highlights Highlights Highlights Versatel Rationale Transaction transforms Tele2’s Benelux operations § Almost double size of revenues in Benelux Market Area (ex UK & Ireland) to €800 million and an EBITDA of €112 million, on pro-forma basis for 2004 § Significantly lower c
Slide 4: Key Attractions for Tele2: Clear demonstration of our Broadband intent
Key Attractions for Tele2 Highlights Highlights Highlights Versatel Rationale Clear demonstration of our Broadband intent § Tele2 will develop the most appropriate broadband strategy for each country § This acquisition is a perfect example of our “Salami Principle” in practice § On the back of our a
Slide 5: Per Borgklint, President Tele2 Netherlands
Per Borgklint President Tele2 Netherlands Market Area Director Benelux
Slide 6: Leading Market Positions
Leading Market Positions Highlights Versatel Rationale Versatel Rationale Netherlands Belgium Customers(1) Customers(1) § 55,000 corporates § 11,800 corporates § 170,000 DSL § 48,000 DSL § 191,000 dial-up § 2,500 dial-up § 189 carrier § 93 carrier Market Position Market Position § €267 million reven
Slide 7: Backbone and Access Network
Backbone and Access Network Highlights Versatel Rationale Versatel Rationale § Country wide back-bones – 2,000 km in total § Dense local city networks in more than 20 cities in NL § Broadband coverage of 65% of households and corporates in NL and 100% in BE – 1,559 km local access infrastructure § D
Slide 8: Strong Historical Growth
Strong Historical Growth Highlights Versatel Rationale Versatel Rationale Benelux Sales (€ millions) 400 273 327 § 62% growth in NL DSL 300 217 subscribers in 2004 200 100 § 40,000 DSL net additions 0 in BE in 2004 2002 2003 2004 § 20% revenue growth in Benelux EBITDA (€ millions) 2004 75 80 60 54 §
Slide 9: Transaction Rationale
Transaction Rationale Highlights Versatel Rationale Synergies Rationale § Achieve critical mass in the Benelux area § Acquire premium infrastructure assets notably local broadband access – Continue strategy of backward integration into network infrastructure in markets with critical mass of customer
Slide 10: Significant Synergies
Significant Synergies Highlights Versatel Rationale Synergies Rationale § Annual run rate EBITDA synergies of €50 million § Migration of Tele2’s existing traffic on Versatel’s network § Optimisation of network infrastructure, IT and billing expenditure § Cross-selling to the existing and acquired cu