Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — Q1 2009 Earnings Presentation
18 slides from Telia Company AB's earnings presentation, April 2009
Slide 1: Interim Report January - March 2009
Interim Report January - March 2009 Lars Nyberg President and CEO Strong first quarter - Q1 2009 in brief • Net sales SEK 27,204 million (24,398) – Increase +11.5% – Organic growth +0.6% (in local currencies) – FX effect +9.6% – Acquisitions +1.3% • EBITDA* SEK 8,821 million (7,755) – Increase +13.7
Slide 2: Business areas
Business areas Mobility services • Economic downturn visible • Focus on cost efficiency • Strong performance continued in Sweden Broadband services • Efficiency measures improved margins • Continued strong growth in IP based services • Introducing price increases for fixed telephony Eurasia • Slower
Slide 3: Focus areas
Focus areas Quality in networks • Launch of 4G services in Stockholm and Oslo in 2010 • Increased speed for 3G services from 7.2 Mbps to 14.4 Mbps and 2,500 surf zones in Sweden • Expansion of 3G network in Finland Cost efficiency • Good progress in Broadband Services • Reduced addressable costs • F
Slide 4: Group outlook 2009
New mobile broadband subscriptions launched in Sweden and Norway Costs related to usage Heavy usage Medium usage Entry • Higher speeds • Free data traffic at 2,500 surf zones in Sweden included 7 Group outlook 2009, net sales revised from Year-end report • Net sales in local currencies and excluding
Slide 5: Net sales trend - Group
Interim Report January - March 2009 Per-Arne Blomquist Executive Vice President and CFO Net sales trend - Group 32 106.4 28 28.1 25.8 27.2 24 24.8 24.9 25.3 103.6 23.9 24.4 22.7 20 100.4 SEK billion 99.4 98.0 16 96.3 94.6 12 93.0 91.8 8 4 0 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Net s
Slide 6: EBITDA margin trend and OPEX development - Group
EBITDA margin* trend - Group 40 34.9% 34.0 35 32.0 33.0 31.6 31.6 31.2 31.7 31.9 31.0 30 34.0% 25 SEK billion 33.4% 20 15 32.2% 32.0% 31.8% 31.8% 31.8% 31.8% 10 5 0 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 EBITDA rolling 4 quarters EBITDA margin rolling 4 quarters * Excluding non-recurr
Slide 7: Mobility Services and Broadband Services
Mobility Services Economic downturn visible • Continued volume growth for mobile 56 data in all markets 52 48.7 49.7 • 46.9 47.5 48 46.1 44 29.6% • Strong performance continued in 40 Sweden. Revenues increased 7.5 36 percent and margin improved to 37.1 SEK billion 32 28 28.9% 29.0% percent (36.1) 24
Slide 8: Eurasia and strong free cash flow generation
Eurasia Maintained high profitability • Lower organic growth in the first quarter, 6.1 percent, compared with the 16 49.6% 49.3% 49.6% 49.8% 48.7% fourth quarter as economic downturn 14 14.2 became more evident 12 13.2 11.4 11.9 • Despite price erosion, EBITDA margin 10 11.0 increased to 49.9 percen
Slide 9: Debt maturity schedule and group financial profile
Debt maturity schedule (excl. lease and pension liabilities) March 31, 2009 Debt Maturing next 12 months (SEK million) 2,500 TeliaSonera AB 2,000 TeliaSonera Finland Oyj (formerly Sonera Corporation) 1,500 1,000 500 0 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 01/10 02/10 03/10 Debt Portf
Slide 10: Actual versus guidance
Actual versus guidance Guidance Actual 2009 Q1 2009 Around the same level Net sales 0.6 percent compared to 2008* Unchanged from 2008 Addressable cost base (SEK 33.8 billion)* -2.4 percent Maintain the margin level EBITDA margin** of 2008 (31.8 percent) 32.4 percent Somewhat lower than in CAPEX, -16
Slide 11: 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
Slide 12: Efficiency measures and strong first quarter
Efficiency measures Target 2009 Q1 2009 • Addressable cost base • Addressable cost base to remain unchanged, in local currency and excl. SEK 33,800 million acquisitions decreased in 2009 2.4% compared to last year • Number of employees • Number of employees will be lower than 31,549 compared with 31
Slide 13: Net sales and EBITDA per business area
Net sales - Group & per Business area Jan - Mar Jan - Mar Change SEK million 2009 2008 % Mobility Services 12,578 11,519 9 Broadband Services 10,964 10,446 5 Eurasia 3,741 2,717 38 Other operations 1,355 1,133 20 The Group 27,204 24,398 12 25 EBITDA* and margin* - Group & per Business area EBITDA* J
Slide 14: Statement of cash flows and credit ratings
Statement of cash flows Jan – Mar Jan – Mar SEK million 2009 2008 EBITDA excluding non-recurring items 8,821 7,755 Dividends received from associated companies 0 0 Interest paid (net) -1,011 -517 Income taxes paid -926 -1,379 Payment of restructuring provisions -192 -97 Difference between paid/recor
Slide 15: Liquidity position and credit statistics
Liquidity position, TeliaSonera Group Cash and cash equivalents, less blocked funds approx. SEK 14 billion Committed bank lines Maturity Size Amount undrawn Bilateral credit facility Sep 2010 SEK 2 billion SEK 2 billion Syndicated revolving credit facility Dec 2011 EUR 1 billion EUR 1 billion Bilate
Slide 16: TeliaSonera pensions obligations
TeliaSonera pensions obligations • TeliaSonera uses defined benefit pension plans for most employees in Sweden, Finland & Norway • TeliaSonera pension funds are funding vehicles for those pension obligations, the remainder recorded on the balance sheet, covered via credit guarantees • Rating agencie
Slide 17: Pension risks and funding strategy
TeliaSonera pensions obligations TeliaSonera Group pension related risks • Reduction of the discount rate for pension obligations by 100 bps from a level of 4.2%, would imply an increase in TeliaSonera Group pension liabilities, all else equal, by some SEK 3.9 billion • The expected impact on fixed
Slide 18: FX rates
FX rates Average YTD Average YTD Change Currency Q1 2009 Q1 2008 % Azerbaijan / Manat 10.3447 7.5000 38 Denmark / Krone 1.4691 1.2613 16 Estonia / Kroon 0.6996 0.6007 16 EMU / Euro 10.9463 9.3992 16 Britain / Pound 12.0453 12.4901 -4 Georgia / Lari 5.0242 4.0345 25 Japan / Yen 0.0898 0.0595 51 Cambo