Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — FY2009 Earnings Presentation
20 slides from Telia Company AB's earnings presentation, Feb 11, 2010
Slide 1: TeliaSonera January – December 2009
TeliaSonera January – December 2009 Lars Nyberg President and CEO 1 Solid performance paves the way for further investments • Net sales SEK 109,161 million (103,585) – At the same level as last year, in local currencies – Healthy mix of mature and emerging markets • EBITDA* SEK 36,666 million (32,95
Slide 2: Lower addressable cost base in 2009
Lower addressable cost base in 2009 SEK million Addressable cost base* 35,000 30,000 25,000 20,000 15,000 10,000 2006 2007 2008 2009 * In local currencies and excluding acquisitions 3 Highest Employee Commitment Score Index Employee Commitment Score 75 70 65 60 55 50 45 40 2004 2005 2006 2007 2008 2
Slide 3: Operational highlights during 2009
Operational highlights during 2009 Significantly improved cash Strong revenue growth Successfully defending flow* in Broadband Services in Mobility Sweden** margins in the Baltics*** SEK million 50% 10,000 45% 8,000 40% 6,000 35% 4,000 30% 2,000 25% Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 0 2008 2009 Lithuani
Slide 4: Launch of the world’s first 4G networks
Launch of the world’s first 4G networks World premiere on December 14 • Launched in Stockholm and Oslo • Build-out continues in 2010 – Sweden’s 25 largest municipalities – Norway’s 4 largest municipalities • 4G license awarded in Finland • Auction in Denmark in H1 2010 • Introduced new, differentiat
Slide 5: Investing to meet customer demands
Investing to meet customer demands CAPEX-to-Sales • Mobility Services 16% – 4G build-out, mainly Sweden and Norway 14% – 3G coverage in Finland and Denmark 12% • Broadband Services 10% – Selective build-out of fiber 8% – Sweden, Finland, Lithuania and Estonia 6% • Eurasia 4% – Network build-out in N
Slide 6: Investing in the future and raising dividend
Investing in the future and raising dividend SEK per share +25% 18% 2.50 15% 2.00 12% 1.50 9% 1.00 6% 0.50 3% 0% 0.00 -03 -04 -05 -06 -07 -08 -09 -10* -03 -04 -05 -06 -07 -08 -09** CAPEX-to-sales ratio (%) Ordinary dividend * The CAPEX-to-sales ratio is expected to be somewhat below 15 percent in 20
Slide 7: Q4 2009 in brief
TeliaSonera January – December 2009 Per-Arne Blomquist Executive Vice President and CFO 13 Q4 2009 in brief • Net sales SEK 27,410 million (28,096) – Decrease -2.4% – Local organic -0.5% – FX effect -2.2% – Acquisitions 0.3% • EBITDA* SEK 9,039 million (8,272) – Increase +9.3% – EBITDA margin* 33.0%
Slide 8: Focus on organic revenue growth
Focus on organic revenue growth TeliaSonera Group Eurasia 15% 50% 13% 40% 10% 30% 8% 20% 5% 10% 3% 0% 0% -10% -3% -20% -5% -30% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Reported growth Organic growth* Reported growth Organic growth* • Organic re
Slide 9: Full year 2009 – in line with the outlook
Full year 2009 – in line with the outlook Outlook 2009 Actual 2009 In line with or slightly Net sales* below the level of 2008 -0.3% Below the SEK 33.8 Addressable cost base* billion in 2008 -6.8% Exceed the margin level EBITDA margin** of 2008 (31.8%) 33.6% In the range 13-14% CAPEX-to-sales ratio
Slide 10: Addressable cost base – Sweden and Finland
Addressable cost base – Sweden and Finland SEK million SEK million 25,000 6,000 -11% -9% 5,000 20,000 4,000 -14% 15,000 -7% 3,000 10,000 -9% 2,000 -18% 5,000 1,000 -9% 0 0 2007 2008 2009 Q4 08 Q4 09 Personnel Marketing IT Rents Other Personnel Marketing IT Rents Other • Full year values, • Quarterly
Slide 11: Business area – Broadband Services
Business area – Broadband Services Net sales and EBITDA margin* Net sales and EBITDA margin* 12,500 -3.2% LC 34% 50,000 -3.1% LC 36% 32% 34% 10,000 40,000 30% 32% SEK million SEK million 7,500 28% 30,000 30% 5,000 26% 20,000 28% 24% 2,500 10,000 26% 22% 0 20% 0 24% Q4 08 Q4 09 2008 2009 Net sales, r
Slide 12: CAPEX and improvement in operating cash flow
CAPEX SEK billion CAPEX 2009 6% 16.0 20% 28% 16% 12.0 32% 12% 8.0 8% 4.0 4% 0.0 0% 2006 2007 2008 2009 34% CAPEX CAPEX-to-sales ratio Mobility Broadband Eurasia Other • Full year CAPEX-to-sales at 12.8 percent (15.2) • Changed approval routines for CAPEX during 2009 23 Improvement in operating cash
Slide 13: Solid financial position
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 Q4 09 Net debt Net debt to EBITDA* rolling 4 quarters * Excluding non-recurring items 25 Debt maturity schedule SEK million Debt Maturing next 12 months, Dec
Slide 14: Proposed dividend and capital structure
Proposed dividend and capital structure • Revised dividend policy – The ordinary dividend shall be at least 50 percent (40) of Net income* • Proposed ordinary dividend SEK 2.25 per share (1.80) – Corresponding to 54 percent (43) of Net income* – Increase of 25 percent compared to 2008 • Proposal for
Slide 15: Strong financial key ratios
Strong financial key ratios Dec 31, 2009 Dec 31, 2008 Return on equity* 15.2% 17.2% Return on capital employed* 15.5% 17.3% Equity/assets ratio 49.1% 50.5% Net debt/equity ratio 34.9% 36.5% * Rolling 12 months One of the best rated Telecom Operators in Europe 29 October – December 2009 Oct – Dec Oct
Slide 16: January – December 2009
January – December 2009 Jan – Dec Jan – Dec Change SEK million 2009 2008 % Net sales 109,161 103,585 5 Addressable cost base 33,568 33,859 -1 EBITDA* 36,666 32,954 11 EBITDA* margin % 33.6 31.8 Operating income* 31,679 30,041 5 Non-recurring items -1,355 -1,393 Operating income 30,324 28,648 6 Finan
Slide 17: Net sales - Group and by Business area
Net sales - Group and by Business area Oct – Dec Oct – Dec Change SEK million 2009 2008 % Mobility Services 12,714 12,796 -1 Broadband Services 10,858 11,109 -2 Eurasia 3,625 4,219 -14 Other operations 1,559 1,447 8 The Group 27,410 28,096 -2 33 EBITDA* - Group and by Business area EBITDA* Oct – Dec
Slide 18: Statement of cash flows
Statement of cash flows SEK million Q1 2009 Q2 2009 Q3 2009 Q4 2009 EBITDA excluding non-recurring items 8,821 9,043 9,763 9,039 Dividends received from ass companies 0 984 1,169 0 Interest paid (net) -1,011 -364 -256 -141 Income taxes paid -926 -722 -790 -618 Payment of restructuring provisions -19
Slide 19: Liquidity position TeliaSonera Group
Liquidity position TeliaSonera Group Cash and cash equivalents, less blocked funds approx. SEK 19.5 billion Committed bank lines Maturity Size Amount undrawn Syndicated revolving credit facility Dec 2011 EUR 1 billion EUR 1 billion Bilateral credit facility Apr 2013 SEK 1.4 billion SEK 1.4 billion D
Slide 20: Forward-looking statements
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