Telia Company Ab · OMXSTO:TELIA
Telia Company Ab — Q1 2023 Earnings Presentation
27 slides from Telia Company Ab's earnings presentation, Apr 26, 2023
Slide 1: Telia Q1 2023
Telia Q1 2023 26 April 2023 g Telia Company
Slide 2: Full focus on strategy execution and capital allocation
Full focus on strategy execution and capital allocation Solid Q1 financial and operational performance across all Telco business units +2.4% ‒ Service revenue growth accelerated Service revenue growth (Telco operations, LFL) ‒ Mobile growth improved (+2.6%), fixed services remain solid (+2.3%) ‒ Ent
Slide 3: Telia Denmark announcement
Telia Denmark announcement Our strategy is focused on winning in markets with a clear path to a leading position Multiple combinations have been considered over many years to resolve our Danish position Combination with Norlys creates a new, national challenger with committed long-term owners Good f
Slide 4: Four key priorities to drive sustainable growth
Four key priorities to drive sustainable growth 1 2 3 4 Restore growth by Lead the build out of Transform to become Build the capabilities to inspiring our customers digital infrastructure that a more digital telco deliver sustainably connects everyone and responsibly 4
Slide 5: Overview: Telco operations
Overview Telco operations
Slide 6: Sweden financials
Sweden financials Service revenue Service revenue split Adj. EBITDA Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +1.8% +1.2% +1.2% -1.0% +0.4% +4.5% +3.3% +3.4% +1.0% +2.8% +
Slide 7: Sweden KPIs
Sweden KPIs Mobile postpaid subs. and ARPU Broadband subs. and ARPU TV subs. and ARPU Subscriptions ’000, ARPU in SEK Subscriptions ’000, ARPU in SEK Subscriptions ’000, ARPU in SEK 251 253 324 322 330 326 324 202 201 202 199 249 250 250 191 162 137 118 100 85 3,877 3,896 3,895 3,886 3,891 1,196 1,2
Slide 8: Finland
Finland Service revenue Adj. EBITDA Mobile postpaid subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in EUR -0.3% -0.4% +0.7% +2.2% +2.3% +1.9% +5.3% -7.3% -5.5% +1.2% 17.8 17.7 17.7 18.0 17.9 3,
Slide 9: Norway
Norway Service revenue Adj. EBITDA Mobile postpaid subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in NOK +6.6% +6.8% +5.9% +3.2% +3.8% +2.0% +2.0% +4.5% +2.5% +2.7% 293 285 288 283 284 3,298 3,
Slide 10: LED markets
LED markets Lithuania Estonia Denmark Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +5.6% +7.5% +5.6% +7.1% +9.9% +5.4% +9.0% -0.5% +13% +13% +8.0% +4.7% +5.0% +5.1% +5.8% +7.
Slide 11: Overview: TV & Media
Overview TV & Media
Slide 12: TV & Media
TV & Media Service revenue Adj. EBITDA C More direct OTT subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in SEK +5.8% +2.0% +0.2% -2.7% -2.4% n/a -40% +24% n/a n/a 163 165 173 178 158 345 2,564
Slide 13: Overview: Financials
Overview Financials
Slide 14: Service Revenue & EBITDA
Service Revenue & EBITDA Service revenue Adjusted EBITDA Like for like growth Like for like growth Full Group Full Group Telco operations Telco operations 4.6% 4.3% 3.2% 2.9% 1.6% 2.4% 2.5% 2.6% 2.4% 1.0% 2.3% 0.8% 0.5% 1.9% 0.1% 1.2% 0.7% -0.6% -0.8% -2.0% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22
Slide 15: OPEX & CAPEX
OPEX & CAPEX OPEX excl. energy CAPEX excl. licensees Like for like growth Reported currency, in SEK billions +1.3% 5.0 4.0 3.7 3.7 3.3 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Mobile NW Fixed NW Product & IT Other ‒ Resource costs lower due to continued FTE/FTC reduction ‒ Increase compared to Q1 last year dri
Slide 16: Cash Flow
Cash Flow Reported currency, SEK billions Q1 2023 Q1 2022 Change ‒ Higher restructuring and other adjustment items following the Adjusted EBITDA 7.3 7.2 0.1 recent resource reductions Restructuring and other adj. items -0.6 -0.3 -0.3 ‒ Cash CAPEX increased by SEK 1.1bn mainly due to continued high i
Slide 17: Cash Flow trends
Cash Flow trends Operational free cash flow Reported currency, in SEK billions, illustrative profile Operational free cash flow Structural part of OFCF ‒ Cash flow generation for the full year weighted towards H2 ‒ CAPEX to gradually reduce and expected to be materially lower in Q4 considering last
Slide 18: Net debt & leverage
Net debt & leverage Net debt and leverage Reported currency, in SEK billions and leverage ratio 2.35x 2.49x +4.3 ‒ As expected, leverage increased to the upper end of our range due to OFCF ‒ Slightly negative impact from other items, including FX ‒ Spectrum costs expected to be material in H2 75.6 7
Slide 19: Overview: Outlook
Overview Outlook
Slide 20: Outlook 2023 reaffirmed
Outlook 2023 reaffirmed Service revenue* Low single digit growth Adjusted EBITDA* Flat to low single digit growth CAPEX excl. licenses and spectrum** In the range of SEK 13-14 billion Structural part of Operational free cash flow In the range of SEK 7-9 billion * Like for like 20 ** Excluding CAPEX
Slide 21: Full focus on strategy execution and capital allocation
Full focus on strategy execution and capital allocation 1 Growth momentum has continued, supported by pricing initiatives and Restore growth by especially strong position in Enterprise services “beyond connectivity” inspiring our customers Digital infrastructure leadership built further with network
Slide 22: Overview: Q&A
Overview Q&A
Slide 23: Overview: Appendix
Overview Appendix
Slide 24: Sustainability overview and key highlights
Sustainability overview and key highlights Three impact Climate and Digital Privacy and areas circularity inclusion security in focus Zero CO2 and 2 million individuals reached Top tier positions/preferred Our Zero Waste through digital inclusion initiatives supplier ambitions by 2030 between 2021-2
Slide 25: Telia's climate commitments
Telia’s climate commitments 2020 2022 2025 2030 2040 Achieve Net Zero by reducing value chain CO2e emissions (scope 1, 2 and 3) by 90%, in line with the new SBTi Net Zero Corporate Standard, and offset (neutralize) residual emissions* • Reduce CO2e emissions in the whole value chain (scope 1, 2 and
Slide 26: ESG awards and ratings as of end 2022
ESG awards and ratings as of end 2022 MSCI ESG rating: “AAA” (highest) Sustainalytics: 15.4 Low Risk, Industry rank 7 out of 232 EcoVadis: “Platinum supplier” rating (highest) ISS ESG rating: -B (Prime status) CDP Climate Rating: A- (up from D in 2018) Included in FTSE4Good 26
Slide 27: Telia Company