Slide 1: Fourth Quarter 2024
• Fourth Quarter 2024 January 29, 2025 Information Classification: Internal
Slide 2: Highlights: 2024 guidance delivered
• 2 Highlights 2024 guidance delivered • Solid FY 2024 with 3% growth in end-user service revenue and 2% in underlying EBITDAaL • EFCF of SEK 4.4bn in 2024 (-7% YoY) • Ordinary dividend proposal of SEK 6.35 per share (100% of 2024 EFCF) • Deep transformation ongoing, including cost-optimisation and
Slide 3: Solid performance – Guidance delivered
• Solid performance – Guidance delivered 3 1) Organic growth rate • 2) Excluding spectrum and leases Sweden Consumer in Q4 • EUSR flat YoY mainly as decline in legacy TV offset solid growth in connectivity • Strong ASPU growth in Fixed broadband and strong RGU intake in Mobile postpaid Sweden Busine
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden Consumer: Solid growth in core connectivity
• Mobile prepaid Fixed broadband EUSR SEKm, YoY growth Digital TV EUSR SEKm, YoY growth Mobile postpaid Tele2 DTV Cable & Fiber Boxer DTV Terrestrial Sweden Consumer: Solid growth in core connectivity Mobile EUSR SEKm, YoY growth Q4 highlights • Mobile end-user service revenue (EUSR) grew 1% due to
Slide 6: Sweden Consumer: Strong net intake in core services
• RGU base & QoQ (‘000s) Fixed broadband RGU & ASPU Tele2 DTV Cable & Fiber RGU & ASPU ASPU growth YoY Sweden Consumer: Strong net intake in core services Mobile postpaid RGU & ASPU Q4 highlights • Strong volume growth in Mobile postpaid incl. mobile broadband. ASPU growth of 1% excl. fair value acc
Slide 7: Sweden Business: Improved topline growth
• Fixed Solutions Mobile Mobile ASPU YoY growth (excl. IoT) End-user service revenue SEKm, YoY growth Sweden Business: Improved topline growth Mobile RGU & net intake Base & QoQ excl. IoT (‘000s), YoY growth Q4 highlights • Mobile EUSR growth of 4% driven by IoT and by continued solid RGU growth mai
Slide 8: Sweden financials: Stable EBITDAaL, solid cash conversion
• Consumer Underlying EBITDAaL & margin SEKm, YoY growth Operating cash flow and cash conversion, LTM, SEKm Business Sweden financials: Stable EBITDAaL, solid cash conversion End-user service revenue SEKm, YoY growth Q4 highlights • EUSR grew by 1% driven by Business while Consumer remained flattish
Slide 9: Baltics
• Baltics Information Classification: Internal
Slide 10: Baltics financials: Sustained strong growth
• Estonia Underlying EBITDAaL & margin SEKm, YoY growth Operating cash flow and cash conversion, LTM, SEKm Latvia Baltics financials: Sustained strong growth End-user service revenue SEKm, YoY growth Lithuania Q4 highlights • Solid EUSR growth of 7% driven by both ASPU and postpaid volume across mar
Slide 11: Baltics operational highlights: Solid ASPU growth
• RGU base & QoQ (‘000s) Latvia – Mobile RGU & ASPU ASPU growth YoY Baltics operational highlights: Solid ASPU growth Estonia – Mobile RGU & ASPU Q4 highlights • The overall Baltic mobile postpaid customer base continued to increase driven by Latvia • Blended organic ASPU growth of 4% mainly driven
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Group results
Group results • Group results Comments • Items affecting comparability was mainly driven by restructuring costs related to the Strategy Execution Program • Depreciation/amortisation decreased mainly because the surplus value of the TDC acquisition has been fully amortised • Net interest and other fi
Slide 14: Group cash flow
Group cash flow • Group cash flow 14 Comments • Amortisation of lease liabilities increased mainly due to our network expansion and 90m reclassification to working capital in Q4 2024. • Capex paid decreased due to a spectrum payment in Sweden of ~370m in Q4 2023, partly offset by higher network inve
Slide 15: Leverage at 2.5x
Leverage at 2.5x • Leverage at 2.5x Comments • Economic net debt increased by SEK 0.6bn compared to year-end 2023, as the payout of the ordinary dividend exceeded the cash generated in the business • Leverage of 2.5x was at the lower end of the target range of 2.5-3.0x • Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24
Slide 16: Tele2 met guidance targets for 2024
Tele2 met guidance targets for 2024 • Tele2 met guidance targets for 2024 End-user service revenue1 Underlying EBITDAaL1 Capex to sales2 2024 guidance 3-4% 1- 3% 13-14% 2024 actuals 3.3% 2.0% 13.8% 16 1) Organic growth rate • 2) Excluding spectrum and leases Information Classification: Internal
Slide 17: Tele2 delivered on planned milestones in 2024
Tele2 delivered on planned milestones in 2024 • Completed 5G swap • Completed phase-out of legacy TiVo platform • Completed migration of Boxer TV • Completed reduction of IT stacks • Completed delivery of several critical digital enablers • Continuous expansion of fixed broadband footprint Tele2 del
Slide 18: Tele2 confirms growth potential across all segments
Tele2 confirms growth potential across all segments • Sweden growth trend continues: • Consumer driven by attractive offers, offsetting Boxer impact • Business driven by IoT, SMEs and LEs, despite economic context • Already before the finalisation of the 5G rollout, Tele2 has the best 5G availabilit
Slide 19: A deep transformation to improve Tele2's profitability
A deep transformation to improve Tele2’s profitability • Main reasons: • Organisational complexity generated by legacy and integration • Low profitability in Estonia and some parts of Sweden Business • Radical change already in progress to improve efficiency, with two priorities: • Simplify our oper
Slide 20: 2025: a transformation and transition year
2025: a transformation and transition year • We will simplify our operating model and our organisation: • Get rid of the complexity inherited from legacy and integration • We will improve the profitability of all parts of our business: • Sweden B2C: focus on customer loyalty and cross-selling • Swed
Slide 21: Tele2 transformation enables solid 2025 guidance
Tele2 transformation enables solid 2025 guidance • Tele2 transformation enables solid 2025 guidance End-user service revenue1 Underlying EBITDAaL1 Capex to sales2 2025 guidance Low single-digit Mid- to high single-digit ~13% 1) Organic growth rate • 2) Excluding spectrum and leases 21 Information Cl
Slide 22: Enabling a society of unlimited possibilities
• Enabling a society of unlimited possibilities Each era brings its own limitations. Breaking them means breaking new ground. We have always challenged limitations to realize new possibilities for our customers and society at large. • Today, we are deeply connected to the digital lifestyle of societ