Slide 1: Third Quarter
THIRD QUARTER October 19, 2021
Slide 2: Strong quarter with solid EUSR growth
Strong quarter with solid EUSR growth SEK The Group Sweden B2C (YoY growth) Q3 21 YTD – EUSR growth of 2% driven by both Sweden – EUSR growth supported by price adjustments and the Baltics in mobile postpaid and broadband and slight 4.9bn 14.4bn tailwind from roaming EUSR – Underlying EBITDAaL growt
Slide 3: Sweden
SWEDEN
Slide 4: Sweden Consumer
Sweden Consumer RGUs & net intake - core and legacy ASPU year-on-year growth End-user service revenue services (thousand)* (%)* (SEK million, year-on-year growth %) +4.1% +1% +2% +3% +3% +1% +36 -4 -7 -8 4% +6 424 420 415 424 420 2% +3.0% -9% -6% +1% 664 662 657 645 641 -5% +3% +7 -2 +1 -5 -12 -4 0%
Slide 5: Sweden Business
Sweden Business Mobile RGUs & net intake Mobile ASPU year-on-year growth End-user service revenue (thousand) (%)* (SEK million, year-on-year growth %) 0% +17 -2% -8% -9% -5% -2% +1% +11 +18 +10 -4.1% -4 -4% 250 265 259 277 259 -6% -3% -8% -1% +4% +4% -8% 238 224 235 234 231 -13% -12% -6% -10% -5% 94
Slide 6: 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) +4% 5,207 5,069 5,020 5,103 -4% -3% -3% -0% +1% 4,963 2,082 1,994 1,907 100% 2,000 1,904 1,864 940 969 946 962
Slide 7: Baltics
BALTICS
Slide 8: Baltics – Operational highlights
Baltics – Operational highlights RGUs & net intake – mobile services Mobile ASPU year-on-year growth (thousand) (%) +28 +64 +80 -12 +8 +9% 10% +7% 1,889 1,884 1,882 1,901 1,945 5% +7% 0% 976 970 981 986 1,005 438 437 436 439 439 -5% Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’
Slide 9: 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) +12% +13% +6% 1,495 1,521 1,485 100% +7% +8% +8% 600 80% 1,440 1,454 477 499 70% 90% 500 444 450
Slide 10: Financial Overview
FINANCIAL OVERVIEW
Slide 11: Revenue breakdown
Revenue breakdown Q3 Q3 YoY YoY % Comments SEK million excl roaming 2021 2020 abs (organic) 1 Mobile postpaid grew by 1% ex roaming Mobile 1,461 1,450 11 1% driven by price adjustments, offsetting Postpaid 1 1,212 1,197 15 1% negative volume growth Prepaid 249 254 -5 -2% Fixed 1,442 1,447 -5 0% 2 Fl
Slide 12: Group results
Group results Comments SEK million Q3 2021 Q3 2020 1 Underlying EBITDA increased by 4% organically, Revenue 6,639 6,543 driven by end-user service revenue growth, cost savings related to the business transformation Underlying EBITDA 1 2,894 2,782 program and less headwinds related to the pandemic Ma
Slide 13: Group cash flow
Group cash flow Comments SEK million Q3 2021 Q3 2020 1 Changes in working capital was seasonally strong in Continuing operations the quarter and positively affected by external Underlying EBITDA 2,894 2,782 handset financing in the Baltics Items affecting comparability -75 40 2 Net financial items p
Slide 14: Leverage at 2.5x
Leverage at 2.5x Economic net debt to underlying EBITDAaL* Comments (SEK billion) 26.2 2.9 – Economic net debt increased by SEK 0.1bn compared to 25 2.1 Q2 2021 as the SEK 2.1bn payment of the extraordinary 2.7 dividend in July was partially offset by cash generation 2.6 – Leverage of 2.5x was in th
Slide 15: Business transformation program update
Business transformation program update Annualized run-rate Realized in Q3 2021 Target 2021* Target 2022* Q3 2021 Opex Reduction 90 425 ~500 >1,000 (SEK million) Comments – Annualized run-rate at end of Q3 2021 of SEK 425 million (SEK 350m as of Q2 2021) – Savings of 90 million realized in Q3 2021 wi
Slide 16: To conclude...
TO CONCLUDE...
Slide 17: Key priorities going forward
Key priorities going forward Sweden Ramp up roll-out of nationwide 5G and continue Remote-PHY roll-out Continue execution of the business transformation program to deliver at least SEK 1bn in opex reduction by the end of 2022 Sweden B2C Execute on phase 2 of FMC with the rebranded Tele2 Sweden B2B C
Slide 18: Thank you!
THANK YOU!
Slide 19: Information Classification: Internal
Information Classification: Internal