Slide 1: Fourth Quarter
FOURTH QUARTER February 2, 2021
Slide 2: Highlights and strategic initiatives
Highlights and strategic initiatives 2020 guidance delivered – Underlying EBITDAaL increased by 2% organically despite headwinds from pandemic Strategic achievements – Executed reorganization within Sweden B2B and merged Tech and IT units – Presented new extended Group Leadership Team – Implemented
Slide 3: Group results and segment summary
Group results and segment summary SEK (YoY growth) Q4 20 FY20 The Group Sweden B2C – Slight growth in EUSR for Q4 and 2020 – Multi-year deal signed with TV4, securing excl. headwinds from the pandemic linear and streamed content rights 4.8bn 19.2bn EUSR – Underlying EBITDAaL growth of 3% for Q4 – Co
Slide 4: Sweden
SWEDEN TELE2
Slide 5: Sweden Consumer
Sweden Consumer RGUs & net intake - core and legacy services ASPU year-on-year growth End-user service revenue (thousand) (%) (SEK million, year-on-year growth %) 4% +2% +2% +1% +1% +2% +23 +38 +23 +36 -4 2% +1.2% 413 415 424 451 442 662 657 664 662 -5% -11% -9% -6% 665 -5% -3 +1 -5 +7 -2 0% +1 -2%
Slide 6: Sweden Business
Sweden Business Mobile RGUs & net intake Mobile ASPU End-user service revenue (thousand) (SEK) (SEK million, year-on-year growth %) 200 -2% 190 -6% -6% -9% +31 -8% +3 -11 -4 +11 180 288 +4% 262 265 265 -0% 250 -6% -3% -8% 170 271 249 160 -8% 258 235 238 -15% -7% -13% -12% 920 950 940 936 947 150 139
Slide 7: Sweden overview
Sweden overview End-user service revenue Underlying EBITDAaL and margin Operating cash flow and cash (SEK million, year-on-year growth %) (SEK million) conversion, rolling 12m (SEK million) +2% -1% -1% -4% -3% -3% 1,901 2,028 1,942 100% 2,000 1,822 1,816 1,061 1,000 980 940 969 90% -2% -6% -6% -8% -
Slide 8: Baltics
BALTICS
Slide 9: Baltics – Operational highlights
Baltics – Operational highlights RGUs & net intake – mobile services Mobile ASPU year-on-year growth (thousand) (%) 13% -18 -30 -33 +80 -12 11% +11% 9% 7% +6% 1,895 1,878 1,853 1,889 1,884 5% 3% 1% +1% 954 950 942 976 970 -1% -3% 437 428 428 438 437 -5% Q4 ’19 Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q4 ’19 Q1 ’
Slide 10: 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% +10% +6% +7% +8% +8% 600 80% 500 477 70% 414 420 444 444 392 394 404 417 406 60% 400 50% +8%
Slide 11: Financial Overview
FINANCIAL OVERVIEW
Slide 12: Revenue breakdown
Revenue breakdown SEK million excl roaming1 Q4 Q4 YoY YoY % Comments 2020 2019 abs (organic) 1 Continued strong mobile postpaid Mobile 1,433 1,397 37 3% growth (ex roaming), driven by both Postpaid 1 1,185 1,131 54 5% volume growth and price adjustments during the year Prepaid 249 266 -17 -7% Fixed
Slide 13: Group results
Group results Q4 Q4 FY FY Comments SEK million 2020 2019 2020 2019 1 Underlying EBITDA increased slightly as growth Revenue 6,884 7,163 26,554 27,203 in the Baltics and transformational cost reduction offset decline in Sweden EUSR and Underlying EBITDA 1 2,661 2,640 10,484 10,309 SEK ~70m impact fro
Slide 14: Group cash flow
Group cash flow Q4 Q4 FY FY Comments SEK million 2020 2019 2020 2019 1 Capex paid increase driven by IT spend Continuing operations related to the business transformation program, network investments and CPE capex Underlying EBITDA 2,661 2,640 10,484 10,309 in Sweden Items affecting comparability 1,
Slide 15: Leverage at 2.6x
Leverage at 2.6x Economic net debt to underlying EBITDAaL* Comments (SEK billion) 2.5 – Economic net debt increased by SEK 3.3bn compared to 24.7 Q3 2020 with SEK 4.3 billion of shareholder remuneration 2.5 paid out in October 2.6 – Leverage of 2.6x remains below the mid-point of the 24.7 2.4 2.5 2.
Slide 16: Business transformation program update
Business transformation program update Benefits in Q4 2020 Achieved 2020* Target 2021* Target 2022* Opex Reduction 50 250 ~500 >1,000 (SEK million) Comments – Annualized run-rate at end of 2020 of SEK 250 million (SEK 150m as of Q3 2020). Savings of 50 million filters through in Q4 2020, and SEK 95
Slide 17: Financial guidance
Financial guidance End-user service revenue Underlying EBITDAaL Capex (SEK)1 2021 ~Flat 2-4% growth 2.8-3.3bn Low-single digit Mid-single digit Mid-term 2.8-3.3bn growth growth Comments – The 2021 guidance assumes international roaming at a similar level to 2020, business transformation program savi
Slide 18: Capex comparison
Capex comparison Tele2 Sweden - Capex excl spectrum and leases / total Total Group, LTM Q3 2020 Capex excl spectrum / total revenue revenue 15,0% 25,0% 20,0% 15,0% 10,0% 10,0% 5,0% 4G roll-out 0,0% 5,0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Full year figures Comments – Thanks to network
Slide 19: To conclude...
TO CONCLUDE...
Slide 20: Key priorities going forward
Key priorities going forward Sweden; Start broader roll-out of nationwide 5G and Remote- PHY Sweden B2C; Consolidate premium brands and continue execution of more-for-more strategy Sweden B2B; Utilize new portfolio to drive sales in SME and optimize profitability in Large Enterprise Baltics; Build o
Slide 21: Thank you!
THANK YOU! TELE2
Slide 22: Tele2
TELE