Slide 1: Third Quarter 2023
• Third Quarter 2023 October 18, 2023 Information Classification: Internal
Slide 2: Q3 highlights
• 2 Q3 highlights 10th consecutive quarter of growth – 3% organic end-user service revenue growth • 3% organic EBITDAaL growth • Strong equity free cash flow • Important spectrum secured – leverage remains at the lower end of our guidance range • Launch of broadband Connection Guarantee – high custo
Slide 3: Q3 summary by Sweden B2C, Sweden B2B, Group and Baltics
• Back to EBITDAaL growth – Strong cash generation Sweden B2C in Q3 • Solid volume growth in Mobile postpaid and Fixed broadband • Solid EUSR growth in connectivity • Launched Connection Guarantee in fixed broadband • Introduced handset binding in Tele2 Mobile • Sweden B2B in Q3 • Continued solid an
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden consumer: Solid volume growth
• Mobile postpaid RGUs Fixed broadband RGU & ASPU Thousand QoQ and YoY growth % Digital TV Cable & Fiber RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Fixed broadband RGUs Digital TV Cable & Fiber RGUs Sweden consumer: Solid volume growth Mobile postpaid RGU & ASPU Thousand QoQ and YoY gr
Slide 6: Sweden consumer: Solid EUSR growth in connectivity
• Mobile prepaid Fixed broadband EUSR SEK million, YoY growth % Digital TV EUSR SEK million, YoY growth % Mobile postpaid Fixed Broadband Digital TV Cable & Fiber DTT TV Sweden consumer: Solid EUSR growth in connectivity Mobile EUSR SEK million, YoY growth % Q3 highlights • Mobile EUSR grew slightly
Slide 7: Mobile Sweden business: Continued healthy topline growth
• Mobile ASPU YoY growth % End-user service revenue SEK million, YoY growth % Mobile Sweden business: Continued healthy topline growth Mobile RGU & net intake Thousand QoQ and YoY growth % Fixed Solutions Q3 highlights • Continued solid EUSR growth of 4% supported by all customer segments • Net inta
Slide 8: Business Sweden financials: Recovering EBITDAaL trajectory
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Business Sweden financials: Recovering EBITDAaL trajectory End-user service revenue SEK million, YoY growth % Q3 highlights • EUSR grew by 2% driven by continued solid performa
Slide 9: Baltics
• Baltics Information Classification: Internal
Slide 10: Baltics operational highlights: Strong ASPU growth
• Mobile RGUs Latvia – Mobile RGU & ASPU Thousand QoQ and YoY growth % ASPU growth YoY Baltics operational highlights: Strong ASPU growth Estonia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Q3 highlights • The overall Baltic mobile postpaid customer base continued to increase • Continued stron
Slide 11: Baltics financials: Continued outstanding track record
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, LTM, SEK million Latvia Baltics financials: Continued outstanding track record End-user service revenue SEK million, YoY growth % Lithuania Q3 highlights • Continued strong end-user service reve
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Group results
Group results • Group results Comments • Net interest and other financial items increased due to higher financing costs for outstanding debt • 1 13 Information Classification: Internal
Slide 14: Group cash flow
Group cash flow • Group cash flow Comments • Capex paid decreased slightly due to timing (whereas capex booked increased significantly) • Changes in working capital in the quarter were mainly impacted by unusually high levels of accounts payable • Net financial items paid increased due to higher int
Slide 15: Leverage at 2.3x
Leverage at 2.3x • Leverage at 2.3x Comments • Economic net debt decreased by SEK 1.8 billion compared to year-end 2022, driven by the cash generated in the business, exceeding the payout of the first tranche of the ordinary dividend • Leverage of 2.3x is below the target range of 2.5-3.0x ahead of
Slide 16: Financial outlook unchanged
Financial outlook unchanged • Financial outlook unchanged Underlying EBITDAaL End-user service revenue Low-single digit growth Low to mid-single digit growth Annual capex1 <14% of revenue Organic growth rate 1 Excluding spectrum and leases 16 In 2023–2024, we expect capex to sales in the upper end o
Slide 17: Key priorities going forward
Key priorities going forward • Key priorities going forward Sustain growth momentum • Continued investments in network infrastructure Rollout of real 5G and Remote-Phy • Healthy shareholder remuneration and investment capability Efficient cash flow profile and solid balance sheet allows for healthy
Slide 18: Enabling a society of unlimited possibilities
• Enabling a society of unlimited possibilities Each era brings its own limitations. Breaking them means breaking new ground. We have always challenged limitations to realize new possibilities for our customers and society at large. • Today, we are deeply connected to the digital lifestyle of societ