Sonera — Merger or Acquisition (October 2002)
27 slides from Sonera's merger presentation, Oct 15, 2002
Slide 1: 2F
2F
Slide 2: Anders Igel, President and CEO, Telia
Anders Igel President and CEO, Telia
Slide 3: Telia and Sonera: Creation of the leading Nordic and Baltic telecommunications company
Telia and Sonera Creation of the leading Nordic and Baltic telecommunications company Offer launched on September 30, 2002 Group strategy Governance and management Market position Synergies verified Financials Conclusion
Slide 4: Telia Sonera
® ~~. TELUY sonera
Slide 5: Strategic focus
Strategic focus Focus will be on best serving customers in core business and creating value for shareholders through stronger profit and cash flow A passion for customers and profits Focus on core business in the Nordic and Baltic regions Adopt strong customer-oriented approach Pursue profitable gro
Slide 6: Customer driven
Customer driven Improved service levels for basic delivery Combined fixed, mobile and Internet offerings Cross selling Easy-to-use services Increased market shares in selected segments
Slide 7: Adopt customer-oriented approach
Adopt customer-oriented approach Technology Services based on strong technology Product approach Customer segment approach Governance based on real customer needs
Slide 8: Generate increased profits and cash flow
Generate increased profits and cash flow Profitable growth Implementation of synergies Stand-alone efficiency improvements Divestment of non-core assets Improving under-performing businesses New strategy for Telia International Carrier Improve performance of Telia Denmark Continue restructuring of S
Slide 9: Governance and management
Governance and management
Slide 10: Governance
Governance An integrated company with strong central control over group matters Day-to-day operations decentralized to profit centers New name TeliaSonera Profit centers Corporate Headquarters 1) Incl. responsibility for non-core holdings International Operations Norway, Denmark, Baltic countries Fi
Slide 11: Management
Management Profit centers Corporate Headquarters 1) Incl. responsibility for non-core holdings Aimo Eloholma International Operations Kenneth Karlberg Norway, Denmark, Baltic countries Anni Vepsalainen Finland Anders Igel (acting) Sweden Lars-Gunnar Johansson Networks and Technology Harri Koponen Ma
Slide 12: Harri Koponen, President and CEO, Sonera: Market position
Harri Koponen, President and CEO, Sonera Market position
Slide 13: A Nordic and Baltic communications leader
Orange DK Tele2 Telenor TDC Radiolinja/ Elisa2) Vodafone (EP) TeliaSonera1) Telia Sonera TDC Tele2 Telenor Elisa Subscribers 8577 3548 3500 3439 1184 Tele2 TDC TeliaSonera1) Telenor Elisa #1 #1 #1 #1 #14) #23) #2 #1 #4 #1 #1 #1 #1 No. of subscribers (thousands) A Nordic and Baltic communications lea
Slide 14: Position outside home market
Position outside home market #3 1) Reflects Sonera's consolidation of Fintur, September 1, 2002 #1 #1 #1 #2 #1
Slide 15: TeliaSonera International Carrier
TeliaSonera International Carrier Wholesale international IP, capacity and voice services to large customers at selected high volume destinations in Europe and in New York
Slide 16: Telia Sonera
® ~~. TELUY sonera
Slide 17: Synergies
Synergies Total annual pre-tax cash flow synergies post 2005 EUR 300 million Implementation costs and CAPEX estimated to EUR 220 million Product and service development, 32% Network operations and production, 14% Corporate functions, 9% Purchasing, 18% IT systems and infra-structure, 27% Product and
Slide 18: Kim Ignatius, CFO, Sonera: Financials
Kim Ignatius, CFO, Sonera Financials
Slide 19: Preliminary pro forma financials 2001
Preliminary pro forma financials 20011) Income statement and cash flow 1) Financials are unaudited under IAS for TeliaSonera, Sonera and Omnitel 2) Effects of excluding Telia's operations in Finland and ComHem AB 3) Excluding effects of other investments and divestments EUR million Telia Sonera Balt
Slide 20: Preliminary pro forma financials January-June 2002
Preliminary pro forma financials1) Income statement and cash flow January-June 2002 1) Unaudited 2) Effects of excluding Telia's operations in Finland and ComHem AB 3) Excluding effects of other investments and divestments EUR million Telia Sonera Baltic EU conditions2) Pro forma adjustments Exchang
Slide 21: Underlying profitability from consolidated operations
Preliminary pro forma financials1) Underlying profitability from consolidated operations 1) Unaudited EUR million Full year 2001 Jan-June 2002 Operating income before associated companies 884 -279 Deduct: Gains from asset sales -1,011 -151 Other items not reflecting underlying business operations -6
Slide 22: Cash generation - pro forma
Cash generation - pro forma 1) Cash flow from operating activities less capital expenditures. 2) Pro forma adjustments including exchange rate adjustments Free cash flow 20011) (EUR million) Telia Sonera Group eliminations2 Total Baltic assets - -703 - -162 15 - -770 128 - -48 EU conditions Telia So
Slide 23: Pro forma net debt / underlying EBITDA
Pro forma net debt1) / underlying EBITDA2) 2002E3) 1) Total interest-bearing debt, net of cash and short-term investments 2) Excluding capital gains and losses, write-offs and other items not reflecting underlying business operations 3) Source: Goldman Sachs research Strong pro forma financial posit
Slide 24: Focus on profit and cash flow
Focus on profit and cash flow Increased revenue Improved profitability Reduced CAPEX Strong free cash flow
Slide 25: Anders Igel, President and CEO, Telia: Conclusion
Anders Igel, President and CEO, Telia Conclusion
Slide 26: Creation of the leading Nordic and Baltic telecommunications company
Creation of the leading Nordic and Baltic telecommunications company TeliaSonera complementary operations and significant synergies Strong financial resources and cash flow Long term: use of home market position in European Telecom consolidation Telia and Sonera
Slide 27: Disclaimer
Disclaimer Cautionary Disclaimer/Legend The combination of Telia and Sonera will be implemented through an exchange offer made by Telia to all shareholders of Sonera. This presentation is neither an offer to purchase nor a solicitation of an offer to sell shares of Sonera. Any offer in the United St