Telia Company Ab · OMXSTO:TELIA

Telia Company Ab — TeliaSonera — Merger or Acquisition (July 2007)

15 slides from Telia Company Ab's merger presentation, Jul 17, 2007

  1. Slide 1: TeliaSonera Acquisition of MCT Corp.

    TeliaSonera Acquisition of MCT Corp. Coscom in Uzbekistan Indigo and Somoncom in Tajikistan Roshan in Afghanistan

  2. Slide 2: Strategic Acquisition Rationale

    Strategic Acquisition Rationale • TeliaSonera will be the leading operator in Central Asian markets – Now: Uzbekistan, Tajikistan and Afghanistan – Existing via Fintur: Kazakhstan, Azerbaijan , Georgia and Moldova – Existing direct & unconsolidated: Turkey (incl. Ukraine indirectly) and Russia (incl

  3. Slide 3: Acquisition Cost

    Acquisition Cost TeliaSonera Acquisition of 100% of MCT Corp for a 100% enterprise value of approximately SEK 2.0 Sonera billion (USD 300 million) holding interest in Holding BV four Eurasian mobile operators: 100% •99.97% interest in Uzbek-American Joint Venture “Coscom” LLC (Coscom) in MCT Corp. U

  4. Slide 4: Acquired Companies

    Acquired Companies 2006 MCT Market Market Company Standard Subscribers Revenues EBITDA EBITDA Interest Share (E) Position (E) USD m USD m Margin (as of May 31, 2007) GSM 900/ Coscom/Uzbekistan 99.97% 392,929 11% #3 26.3 5.8 22% 1800 Mhz Total Tajikistan 377,192 27% #2 27.3 13.7 50% GSM 900 / 1800 In

  5. Slide 5: New Mobile Markets

    New Mobile Markets Uzbekistan Tajikistan Afghanistan Mobile market consists of four Mobile market consists of nine operators; Five GSM licenses, two of which were operators, including three GSM and 5 GSM/UMTS (2 belong to MCT) to commence operations in 2007. one CDMA operators. 4 CDMA Market Share o

  6. Slide 6: Coscom, Uzbekistan

    Coscom, Uzbekistan Subscribers (as of May 31, 2007) 392,929 Market Share 11% Position in the Market #3 Prepaid / Total Subs (approx.) 63% • First GSM operator in Central Asia MCT Interest 99.97% • Leader in serving Uzbekistan Standard GSM 900/1800 Mhz corporate segment Network Launch 1997 • High qua

  7. Slide 7: Somoncom, Tajikistan

    Somoncom,Tajikistan Subscribers (as of May 31, 2007) 205,249 Market Share 15% Position in the Market #2 (Combined with Indigo) • First GSM operator in Tajikistan Prepaid / Total Subs (approx.) 58% • Leader in the North Tajikistan MCT Interest 59.4% • Seamless network with Indigo GSM 900 / 1800 Mhz S

  8. Slide 8: Indigo, Tajikistan

    Indigo,Tajikistan Subscribers (as of May 31, 2007) 171,943 Market Share 12% Position in the Market #2 (Combined with Somoncom) Prepaid / Total Subs (approx.) 20% • Seamless network with Somoncom MCT Interest 60% • 40% corporate customer share GSM 900 / 1800 Mhz Standard 3G-UMTS • Strong Coverage Are

  9. Slide 9: Roshan, Afghanistan

    Roshan, Afghanistan Subscribers (as of May 31, 2007) 1,300,300 Market Share 50% Position in the Market #1 Prepaid / Total Subs 100% • The leading mobile operator in Afghanistan MCT Interest 12.25% • Strong network coverage Standard GSM 900/1800 Mhz • Strong brand Network Launch 2003 2006 ARPU (month

  10. Slide 10: Corporate Social Responsibility

    Corporate Social Responsibility • TeliaSonera has a transparent way of working in CIS countries – We are committed to our Code of Ethics & Conduct – We will ensure solid internal control environment • TeliaSonera recognizes its corporate social responsibilities and will keep acting as a good citizen

  11. Slide 11: The MCT acquisition underlines TeliaSonera's strategy in Eurasia

    The MCT acquisition underlines TeliaSonera’s strategy in Eurasia – To be the leading Eurasian mobile operator – Create shareholder value by considering all possible value enhancing alternatives – Combine Eastern positions to create stronger platform for growth – Evaluate new acquisition opportunitie

  12. Slide 12: Appendix Country information

    Appendix Country information

  13. Slide 13: Appendix 1. Overview of the New Countries

    Appendix 1. Overview of the New Countries Country: Uzbekistan Tajikistan Afghanistan Population: 27.8 million (July 2007) 7.1 million (July 2007) 31.9 million (July 2007) Area: 450,000 sq km 143,100 sq km 647,500 sq km GDP: USD 10.78 billion (2006 est.) USD 2.1 billion (2006 est.) USD 8.8 billion (2

  14. Slide 14: Appendix 2. New Countries-Demographics

    Appendix 2. New Countries-Demographics Country: Uzbekistan Tajikistan Afghanistan Age 0-14 years: 32.9% 0-14 years: 37.9% 0-14 years: 44.6% Distribution: 15-64 years: 62.3% 15-64 years: 57.4% 15-64 years: 53% 65 years and over: 4.8% 65 years and over: 4.8% 65 years and over: 2.4% Median age: 22.7 Me

  15. Slide 15: Appendix 3. New Countries-Economic Indicators

    Appendix 3. New Countries-Economic Indicators Country: Uzbekistan Tajikistan Afghanistan USD 10.78 billion (2006 GDP: USD 2.1 billion (2006 est.) USD 8.8 billion (2006 est.) est.) GDP/capita USD 2,000 (PPP) USD 1,300 (PPP) USD 800 (PPP) (PPP): Inflation: 7.6% 7.5% 16.3% GDP by sector: Services: 43.2

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