Slide 1: Fourth Quarter 2021 Results, February 1, 2022
• fourth Quarter February 1, 2022 Information Classification: Internal
Slide 2: Highlights and strategic initiatives
Highlights and strategic initiatives • Highlights and strategic initiatives 2021 guidance delivered • End-user service revenue increased by 1% organically • Underlying EBITDAaL increased by 5% organically • Strategic achievements 2021 • Consolidated Tele2 and Com Hem into the new Tele2 brand • Execu
Slide 3: Building sustainable growth
• Building sustainable growth Sweden B2C • Solid performance in mobile postpaid and fixed broadband driven by price adjustments and slight tailwind from roaming • Strong net intake in mobile postpaid in the quarter • Solid performance for Tele2 Play+. Launch of Tele2 Play Tv+ Sweden B2B • Second con
Slide 4: Sweden
• sweden Information Classification: Internal
Slide 5: Sweden Consumer: mobile postpaid, fixed broadband and digital TV RGUs and ASPU
• Mobile postpaid RGUs Fixed broadband RGU & ASPU* Thousand QoQ and YoY growth % Digital TV Cable & Fiber RGU & ASPU* Thousand QoQ and YoY growth % Mobile postpaid ASPU Fixed broadband ASPU Fixed broadband RGUs Digital TV Cable & Fiber ASPU Digital TV Cable & Fiber RGUs Sweden Consumer Mobile postpa
Slide 6: Sweden Consumer end-user service revenue
• Mobile prepaid Fixed broadband EUSR SEK million, YoY growth % Digital TV EUSR SEK million, YoY growth % Mobile postpaid Fixed Broadband Digital TV Cable & Fiber DTT TV Sweden Consumer Mobile EUSR SEK million, YoY growth % Q4 highlights • Total EUSR for mobile increased by 1% YoY driven by ASPU and
Slide 7: Sweden Business mobile and solutions
• Mobile ASPU YoY growth % End-user service revenue SEK million, YoY growth % Mobile Sweden Business Mobile RGU & net intake Thousand QoQ and YoY growth % Fixed Solutions Q4 highlights • Continued strong net intake within mobile of 14,000 RGU’s driven by both SME and Large • Mobile ASPU trends conti
Slide 8: Sweden Business overview: EBITDAaL and cash flow
• Consumer Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, rolling 12m, SEK million Business Sweden overview End-user service revenue SEK million, YoY growth % Q4 highlights • EUSR was flat YoY as growth in Sweden B2B and mobile postpaid and fixed broa
Slide 9: Baltics
• Baltics Information Classification: Internal
Slide 10: Baltics operational highlights
• Mobile RGUs Latvia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Mobile ASPU Baltics operational highlights Estonia – Mobile RGU & ASPU Thousand QoQ and YoY growth % Q4 highlights • Continued strong ASPU growth across all markets driven by more-for-more price adjustments and slight tailwind fr
Slide 11: Baltics financials
• Estonia Underlying EBITDAaL & margin SEK million, YoY growth % Operating cash flow and cash conversion, rolling 12m, SEK million Latvia Baltics financials End-user service revenue SEK million, YoY growth % Lithuania Q4 highlights • Continued strong EUSR growth of 14% driven by both ASPU and volume
Slide 12: Financial overview
• Financial overview Information Classification: Internal
Slide 13: Revenue breakdown
Revenue breakdown • Revenue breakdown Comments • Continued growth in mobile postpaid EUSR driven by both ASPU and volume growth • Slight decline in Sweden B2C EUSR ex roaming as continued growth within mobile and fixed broadband did not fully offset the decline in legacy services • EUSR for Sweden B
Slide 14: Group results
Group results • Group results 1 2 Comments • Underlying EBITDA grew by 1% in the quarter driven by EUSR growth and cost savings related to the Business Transformation Program, partly offset by increased commercial spending and headwinds related to higher inflation • Items affecting comparability of
Slide 15: Group cash flow
Group cash flow • Group cash flow Comments • Capex paid increased compared to last year due to network investments related to 5G • Changes in working capital refers primarily to a receivable settled in the quarter of roughly SEK 325 million, positive impact from timing in accounts payable and contin
Slide 16: Leverage at 2.5x
Leverage at 2.5x • Leverage at 2.5x Comments • Economic net debt increased by SEK 0.2 billion compared to Q3 2021 as the ordinary dividend of SEK 2.1bn was largely compensated by strong cash generation in the quarter • Leverage of 2.5x remains below the mid-point of the target range of 2.5-3.0x • Pr
Slide 17: Business Transformation Program update
Business Transformation Program update • Business Transformation Program update Annualized run-rate Q4 2021 Realized in Q4 2021 Annualized run-rate target H1 2023 Opex Reduction SEK million Comments • Continued optimization within the technology and IT organization lead to cost reductions in Q4 2021
Slide 18: Financial guidance
Financial guidance • Financial guidance Comments • 2022 guidance in-line with mid-term guidance • 2022 guidance assumes growth in all markets, tailwind from roaming, most of the run-rate savings related to the Business Transformation program realized by end of 2022, partly offset by continued invest
Slide 19: Key priorities going forward
Key priorities going forward • Key priorities going forward Sweden Ramp up roll-out of nationwide 5G and continue Remote-PHY roll-out • Execute on Business Transformation program to achieve at least SEK 1bn in annualized run-rate savings by end of H1 2023 • Sweden B2C Execute on phase 2 of FMC with
Slide 20: Thank you!
• Thank you! Information Classification: Internal
Slide 21: Information Classification: Internal
Information Classification: Internal