Tele2 Ab Class A · OMXSTO:TEL2_A
Tele2 Ab Class A — Q3 2018 Earnings Presentation
26 slides from Tele2 Ab Class A's earnings presentation, Jan 17, 2019
Slide 1: Third Quarter 2018
THIRD QUARTER 2018 October 18, 2018 Tele2 AB
Slide 2: Group highlights - Q3 2018
Group highlights - Q3 2018 SEK billion Revenue Mobile end-user service revenue Adjusted EBITDA Operating cash flow, rolling 12m Q3 2018 6.5 3.7 2.0 4.9 % change reported 7% 8% 12% 14% % change LFL 4% 5% 9% Comments SEK 4.2bn rolling 12m OCF with a growth of 19% including the Netherlands LFL is const
Slide 3: Delivering on our long term strategy
Delivering on our long term strategy Baltic Sea Challenger Sweden reverts to growth in MEUSR and adjusted EBITDA Baltics MEUSR up 3% and adjusted EBITDA up 9% LFL Rolling 12m operating cash flow up 3% to SEK 4.5bn Investment Markets Kazakhstan MEUSR growth of 22% LFL and adjusted EBITDA margin of 34
Slide 4: Baltic Sea Challenger
Baltic Sea Challenger
Slide 5: Sweden - Financials
Sweden - Financials Mobile end-user service revenue (SEK million) +1% 1,938 1,932 1,911 1,925 1,950 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Adjusted EBITDA and margin (SEK million) +6% 1,113 1,054 1,066 1,042 1,181 29% 26% 27% 27% 31% Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 OCF and cash conversion, rolling 12
Slide 6: Sweden B2C - Resilient in a vibrant market
Sweden B2C - Resilient in a vibrant market Mobile end-user service revenue growth 0% Q3 '17 Q3 '18 Postpaid ASPU* +1% Q3 '17 Q3 '18 Campaigns Summer Power 30GB Extra VI Alskar Billig Surf Skaffa enkelt pa comviq.se Comvig.se Billigt, billigt, billigt. Q3 highlights Mobile end-user service revenue fl
Slide 7: Sweden B2B - Customer wins continue
SwedenB2B - Customer wins continue Revenue +1% Q3 '17 Q3 '18 Service revenue -3% Q3 '17 Q3 '18 Customer successes in the quarter Goteborg Energi Alvesta kommun Almhults kommun axfood Q3 highlights Revenue growth driven by equipment sales and a return to growth in mobile Service revenue decline drive
Slide 8: Baltics - Financials
Baltics - Financials Mobile end-user service revenue (SEK million) +3% 579 586 585 639 650 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Adjusted EBITDA and margin (SEK million) +9% 341 323 315 365 403 34% 30% 31% 32% 35% Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 OCF and cash conversion, rolling 12m (SEK million) 962
Slide 9: Baltics - Growth despite tougher comps
Baltics - Growth despite tougher comps ASPU development +1% Q3 '17 Q3 '18 4G smartphone penetration 46% 58% Q3 '17 Q3 '18 Brand campaigns TELE2 INTERNETS JOPROJAM ATRAKAIS LATVIJA! 41,18 MBIT/S Saskana ar 2018. gada piroa pusgada SPRK datiem Tele2 internetam ir vidcji Lielakais atrums Latvija - 41.1
Slide 10: Investment Markets
Investment Market<c
Slide 11: Kazakhstan - Financials
Kazakhstan - Financials Mobile end-user service revenue (SEK million) +22% 505 552 534 613 628 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Adjusted EBITDA and margin (SEK million) +62% 168 196 202 264 274 26% 28% 29% 34% 34% Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 OCF and cash conversion, rolling 12m (SEK million
Slide 12: Kazakhstan - Continued positive momentum
Kazakhstan - Continued positive momentum ASPU development +17% Q3 '17 Q3 '18 Customer base +4% Q3 '17 Q3 '18 Net Promoter Score 23 21 33 33 Q3 '17 Q3 '18 Tele2 Altel Q3 highlights ASPU growth driven by new tariffs supporting monetization of increased data consumption Strong customer satisfaction is
Slide 13: Financial Overview
Financial Overview
Slide 14: Group results Q3 2018
Group results Q3 2018 SEK million Revenue Adjusted EBITDA Adjusted EBITDA margin (%) Items affecting comparability D and A JVs and associated companies Operating profit Interest income/expenses Other financial items Taxes Net profit, continuing operations Discontinued operations Non-controlling inte
Slide 15: Group cash flow Q3 2018
Group cash flow Q3 2018 SEK million Adjusted EBITDA, continuing operations Adjusted EBITDA, discontinued operations Financial items paid/received Taxes paid Changes in working capital CapEx paid Other cash items Free cash flow Of which free cash flow, discontinued operations Of which free cash flow,
Slide 16: Operating cash flow
Operating cash flow Rolling 12 months, SEK million 77 145 340 538 728 3,377 3,371 3,361 3,337 3,172 3,245 3,284 3,332 3,815 4,055 4,218 4,362 4,225 4,180 4,160 -296 397 -481 -648 -649 -558 -490 -342 -210 -123 -906 -1,133 -1,185 -1,344 -1,707 -1,856 -1,838 -1,643 -1,150 -939 -746 -674 -732 -597 -661
Slide 17: Debt position and financial leverage
Debt position and financial leverage Total operations, Economic net debt to adjusted EBITDA rolling 12 months SEK billion 10.7 9.8 9.8 11.4 10.2 1.7 1.5 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Economic net debt Economic net debt to adjusted EBITDA 10.7 -2.0 2.0 -0.5 10.2 Sep 2017 Free cash flow
Slide 18: Upgraded financial guidance 2018
Upgraded financial guidance 2018 Tele2 standalone Mobile end-user service revenue Mid-single digit % growth* Adjusted EBITDA (SEK billion) 7.0 - 7.2 CAPEX (SEK billion excluding spectrum) 1.9 - 2.2 * Based on continuing operations in constant currencies
Slide 19: To conclude...
To conclude...
Slide 20: Key priorities moving forward
Key priorities moving forward Prepare to close mergers in both Sweden and Netherlands Operational excellence to remain a high priority Growth from continued data monetization Further leverage our momentum in Baltics, Croatia and Kazakhstan Fearlessly liberate people to live a more connected life Pos
Slide 21: Tele2's Way2Win
Tele2's Way2Win Our Purpose We fearlessly liberate people to live a more connected life Where We Play Baltic Sea Challenger Investment Markets IoT Cash Generators How We Win Positively Fearless Brands Connecting Things our Customers Love Digital First Customer Experience Winning Cost Structure Respo
Slide 22: Thank you!
THANK YOU! INTERIM REPORT THIRD QUARTER 2018
Slide 23: Revenue and mobile end-user service revenue
WMRevenue [ll Mobile end-user service revenue 10,000 7,500
Slide 24: Financial Summary
FINANCIAL SUMMARY Tele2 – Interim Report January-September 2018 3 (32) SEK million Q3 2018 Q3 2017 FY 2017 Mobile Net customer intake (thousands) Revenue 5,613 5,103 20,720 Adjusted EBITDA 1,842 1,569 5,848 Operating profit excl. items affecting comparability 1,297 1,107 3,870 CAPEX 1,353 Fixed broa
Slide 25: Slide 25
Slide 26: Q3 2018 Presentation Contacts Appendices
Q3 2018 PRESENTATION CONTACTS APPENDICES Tele2 – Interim Report January-September 2018 4 (32) Financial guidance Full-year financial guidance excluding contribution from Com Hem Tele2 expects to report full-year and fourth quarter results including contribution from Com Hem for the period November 5