Slide 1: Third Quarter
THIRD QUARTER October 20, 2020
Slide 2: Highlights and strategic initiatives
Highlights and strategic initiatives Q3 The Group Sweden B2C 2020 – COVID-19 impact of SEK 100m on – Backbook price increases finalized and underlying EBITDAaL volume growth sustained, proving our – Dividends of SEK 6.25 per share distributed more-for-more strategy End-user SEK in the beginning of O
Slide 3: Sweden
SWEDEN TELE2
Slide 4: Sweden Consumer
Sweden Consumer RGUs & net intake - core and legacy services ASPU year-on-year growth End-user service revenue (thousands) (% proforma) (SEK million, proforma, year-on-year growth %) +23 +38 +23 +36 4% +1% +35 +3% +2% +2% +1% 2% +1.1% 662 657 664 415 664 665 454 451 442 413 -3 -5 +7 +7 -9% +1 +1 -3
Slide 5: Sweden Business
Sweden Business Mobile RGUs & net intake Mobile ASPU End-user service revenue (thousands) (SEK) (SEK million, proforma, year-on-year growth %) 200 -2% -3% -6% -6% 190 -8% +31 -11 -4 288 +4 +3 257 262 180 +4% +4% 265 250 -0% -6% -3% 170 271 271 249 -8% 258 235 160 -12% -15% -7% -13% 916 920 950 940 9
Slide 6: Sweden overview
Sweden overview End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, proforma, year-on-year growth %) (SEK million) conversion, rolling 12m (SEK million, proforma) +1% 5,480 5,546 5,474 5,251 5,330 -0% -1% -1% -3% -4% 1,018 1,061 1,000 980 940 -3% -2% -6
Slide 7: Baltics
BALTICS
Slide 8: Baltics – Operational highlights
Baltics – Operational highlights RGUs & net intake – mobile services Mobile ASPU year-on-year growth (thousands) (%) 13% +28 -18 -30 -33 +80 11% 9% +10% 7% +7% 1,902 1,895 1,878 1,853 1,889 5% +6% 3% 1% -1% 963 954 950 942 976 -3% 440 437 428 428 438 -5% Q3 ’19 Q4 ’19 Q1 ’20 Q2 ’20 Q3 ’20 Q3 ’19 Q4
Slide 9: Baltics – Financials
Baltics – Financials End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, year-on-year organic growth %) (SEK million) conversion, rolling 12m (SEK million) +10% +6% +7% +12% +10% +8% 1,440 100% 1,344 1,392 600 1,255 80% 1,295 90% 414 500 477 70% 83% 391
Slide 10: Financial overview
FINANCIAL OVERVIEW
Slide 11: Revenue breakdown
Revenue breakdown Q3 Q3 YoY YoY % Comments SEK million 2020 2019 abs (organic) 1 Strong mobile postpaid growth Mobile 1,450 1,411 39 3% excluding roaming impact, driven by Postpaid 1 1,197 1,129 67 6% both volume growth and pricing, proving our more-for-more strategy Prepaid 254 282 -28 -10% Fixed 1
Slide 12: Group results
Group results Q3 Q3 YTD YTD Comments SEK million 2020 2019 2020 2019 1 Underlying EBITDA increased by 2% Revenue 6,639 6,852 19,976 20,389 organically* in the quarter. Strong operational performance in the Baltics and Underlying EBITDA 1 2,821 2,783 7,946 7,830 cost savings, primarily attached to th
Slide 13: Group cash flow
Group cash flow Q3 Q3 YTD YTD Comments SEK million 2020 2019 2020 2019 1 Capex paid increased to SEK -649m due to Continuing operations timing of customer equipment capex and higher network investments Underlying EBITDA 2,821 2,783 7,946 7,830 Items affecting comparability 40 -75 -119 -607 2 Changes
Slide 14: Leverage at 2.2x
Leverage at 2.2x Economic net debt to underlying EBITDAaL* Comments (SEK billion) – Economic net debt decreased by SEK 1.7bn since Q2 2020, 2.6 24.9 reflecting the strong equity free cash flow generation 24.4 2.6 during Q3 2020 4.3 2.6 – Leverage of 2.2x is below the target range of 2.5-3.0x 24.4 2.
Slide 15: Business transformation program update
Business transformation program update Run-rate Target Benefits in quarter (Annualized at end of quarter) (Run-rate at end of year 3) Opex Synergies 35 150 >1,000 (SEK million) Drivers – We have now reached annualized run rate savings of SEK 150 million. Savings of 35 million filters through in the
Slide 16: Financial guidance
Financial guidance End-user service revenue Underlying EBITDAaL Capex1 2020 ~Flat 2.5-3.0bn Low-single digit Mid-single digit Mid-term 2.8-3.3bn growth growth Comments – Tele2 will issue updated guidance for 2021 and the midterm in connection to the Full Year and Fourth Quarter 2020 Report 16 1 Excl
Slide 17: To conclude...
TO CONCLUDE...
Slide 18: Key priorities going forward
Key priorities going forward Sweden B2C; Win the Swedish household through FMC and continue to execute on our more-for-more strategy Sweden B2B; Optimize our portfolio for simplicity and profitability, to address competitive market conditions Baltics; Build on the momentum through mobile centric con
Slide 19: Thank you!
THANK YOU! TELE2
Slide 20: TELE
TELE