Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — Q1 2011 Earnings Presentation
17 slides from Telia Company AB's earnings presentation, April 2011
Slide 1: TeliaSonera January - March 2011
TeliaSonera January - March 2011 Lars Nyberg President and CEO 1 Strong margin improvement • Net sales SEK 24,725 million (26,190) – Increased 2.5 percent in local currencies • EBITDA* SEK 8,812 million (8,945) – Increase of 5.3 percent in local currencies – EBITDA margin improved to 35.6 percent (3
Slide 2: Net sales growth of 2.5 percent
Net sales growth of 2.5 percent Group* Business areas* 5% 25% Q4 2010 Q1 2011 20% 4% 15% 3% 10% 2% 5% 0% 1% -5% 0% -10% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Mobility Broadband Eurasia • Regulatory effects, less growth in handset sales and somewhat lower service revenues in Mobility Services • Challenging r
Slide 3: Android gaining momentum
Android gaining momentum Total data usage by Operating system – Jan 2010 vs. Jan 2011 11% 31% 21% Other Android 64% 68% iPhone 5% Data usage – MB/user • ~20x increase in Android phones last 12 months • 8 out of 10 best selling phone models now Android • Almost 10x more data usage with iPhone 4 vs. t
Slide 4: More than 30 million subscriptions in Eurasia
More than 30 million subscriptions in Eurasia 30 million subscriptions (‘000) 30,289 Moldcell Tcell Geocell 12,147 Azercell Ncell Ucell Kcell 2007 Q1 2011 Strong subscription intake (millions) Q1 2009 Q1 2011 9.4 7.3 4.8 7 Investing to meet our customers’ demand • Commercial 4G services available in
Slide 5: Improving corporate governance in Turkcell
Improving corporate governance in Turkcell • The Board of Turkcell is in a deadlock • The Chairman of the Board is not independent and impartial and has been blocking vital decisions • TeliaSonera has taken legal action to protect its shareholder rights and have the Chairman removed • TeliaSonera wi
Slide 6: Significant impact from currency movements
TeliaSonera January - March 2011 Per-Arne Blomquist Executive Vice President and CFO 11 Significant impact from currency movements Reported growth in net sales Organic growth in net sales 0% 5% -1% 4% -2% 3% -3% 2% -4% 1% -5% -6% 0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 • EUR/S
Slide 7: Financial highlights – Q1 2011
Financial highlights – Q1 2011 Jan – Mar Jan – Mar Change SEK million Local ccy % 2011 2010 % Net sales 24,725 26,190 -6 2.5 EBITDA* 8,812 8,945 -4 5.3 Depreciation, amortization -3,207 -3,103 3 Income from associated companies 1,628 1,601 3 Operating income* 7,247 7,444 -3 EPS, SEK 1.04 1.05 -1 Fre
Slide 8: Still awaiting a recovery in the Baltics
Still awaiting a recovery in the Baltics Net sales growth* - Baltic countries Net sales growth* - Nordic countries 10% 15% 10% 0% 5% -10% 0% -20% -5% -30% -10% Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Estonia Latvia Lithuania Sweden Finland Norway Denmark • Trends in net sales hav
Slide 9: Margin improvement in International Carrier
Margin improvement in International Carrier Net sales and EBITDA margin 2.0 10% -20% LC 1.6 8% Net sales* SEK billion EBITDA margin** 1.2 6% 0.8 4% 0.4 2% 0.0 0% Q1 10 Q1 11 • Net sales declined by 20% but EBITDA* margin improved to 6.3% (4.0) * In local currencies and excluding acquisitions ** Excl
Slide 10: Data revenues increasing in Eurasia
Data revenues increasing in Eurasia Growth in Net sales* - Q1 2011 Nepal 99% Uzbekistan 43% Kazakhstan 28% Tajikistan 12% Moldova 11% Azerbaijan -1% Georgia-18% -30% 0% 30% 60% 90% 120% Data revenues as % of Net sales Q1 2010 16% Q1 2011 11% Kcell Ucell * In local currencies and excluding acquisitio
Slide 11: Stable CAPEX-to-sales ratio expected
Stable CAPEX-to-sales ratio expected CAPEX split Q1 2011* CAPEX-to-sales ratio 16% 4% 14% 12% 33% Mobility 10% 30% Broadband 8% Eurasia 6% 33% Other 4% 2% 0% Q1 10 Q1 11* 2010 2011e • Total CAPEX amounted to • CAPEX-to-sales for 2011 is SEK 3.7 billion (2.0) expected to be approx. 13-14%, excl. lice
Slide 12: Stable Net debt to EBITDA
Stable Net debt to EBITDA Net debt to EBITDA-ratio • Dividend of SEK 12.3 billion paid in Q2 2011 SEK billion • Payment for the repurchase 60.0 2.0 program, SEK 9.9 billion, also paid in Q2 2011 45.0 1.5 30.0 1.0 15.0 0.5 0.0 0.0 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 23 Debt maturity schedule Debt Maturing
Slide 13: Looking ahead
Looking ahead • Growth in net sales* expected to be around 3% • Growth in addressable cost base below the growth in net sales • EBITDA margin** to improve compared with 2010 (34.7%) • CAPEX-to-sales*** ratio between 13-14% * In local currencies and excluding acquisitions ** Excluding non-recurring i
Slide 14: Strong financial key ratios
Strong financial key ratios Mar 31, 2011 Dec 31, 2010 Return on equity* 19.0% 17.8% Return on capital employed* 17.7% 16.9% Equity/assets ratio 42.2% 48.0% Net debt/equity ratio 41.6% 39.3% Net Debt/EBITDA rate* multiple 1.22x 1.28x * Rolling 12 months, EBITDA excl. non-recurring items 27 TeliaSoner
Slide 15: Organic revenue growth
Organic revenue growth Revenue growth (%) Reported of which of which of which Q1 2011 growth currency disposals organic Mobility Services -2.9 -7.5 - 4.6 Broadband Services -10.8 -4.0 - -6.8 Eurasia 9.2 -12.4 - 21.6 The Group -5.6 -6.7 -1.4 2.5 29 Net sales - Group and by Business area Jan - Mar Jan
Slide 16: EBITDA - Group and by Business area
EBITDA* - Group and by Business area EBITDA* Jan - Mar Jan - Mar Change SEK million 2011 2010 % Mobility Services 3,680 3,561 3 Broadband Services 3,094 3,522 -12 Eurasia 1,968 1,735 13 Other operations 68 130 -48 The Group 8,812 8,945 -1 Jan - Mar Jan - Mar Change EBITDA* margin, % 2011 2010 % poin
Slide 17: Dividend policy
Dividend policy • The company shall target a solid investment grade long- term credit rating (A- to BBB+) to secure the company’s strategically important financial flexibility for investments in future growth, both organically and by acquisitions. • The ordinary dividend shall be at least 50 percent