Telia Company Ab · OMXSTO:TELIA
Telia Company Ab — Q2 2023 Earnings Presentation
26 slides from Telia Company Ab's earnings presentation, Jul 20, 2023
Slide 1: Telia Q2 2023
Telia Q2 2023 g Telia Company
Slide 2: Telco performance improved further
Telco performance improved further Solid Q2 financial and operational performance across all Telco operations ‒ Service revenue growth accelerated +3.2% Service revenue growth ‒ Mobile growth improved (+3.4%) as did fixed services (+3.0%) (Telco operations, LFL) ‒ Consumer improved (+2.4%) and Enter
Slide 3: Four key priorities to drive sustainable growth
Four key priorities to drive sustainable growth 1 2 3 4 Restore growth by Lead the build out of Transform to become Build the capabilities to inspiring our customers digital infrastructure that a more digital telco deliver sustainably connects everyone and responsibly 3
Slide 4: Overview: Telco operations
Overview Telco operations
Slide 5: Sweden financials
Sweden financials Service revenue Service revenue split Adj. EBITDA Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +1.2% +1.2% -1.0% +0.4% +1.8% +3.3% +3.4% +1.0% +2.8% +4.1% +
Slide 6: Sweden KPIs
Sweden KPIs Mobile postpaid subs. and ARPU Broadband subs. and ARPU TV subs. and ARPU Subscriptions ’000, ARPU in SEK Subscriptions ’000, ARPU in SEK Subscriptions ’000, ARPU in SEK 253 252 330 326 333 201 202 251 250 250 322 324 199 198 191 137 118 100 85 70 3,896 3,895 3,886 3,891 3,905 1,226 1,24
Slide 7: Finland
Finland Service revenue Adj. EBITDA Mobile postpaid subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in EUR -0.4% +0.7% +2.2% +2.3% +2.3% +5.3% -7.3% -5.5% +1.2% +2.2% 18.4 17.7 17.7 18.0 17.9 3,
Slide 8: Norway
Norway Service revenue Adj. EBITDA Mobile postpaid subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in NOK +6.8% +5.9% +3.2% +3.8% +5.4% +2.0% +4.5% +2.5% +2.7% +14.3% 297 293 3,298 1,846 288 3,1
Slide 9: LED markets
LED markets Lithuania Estonia Denmark Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth +7.5% +5.6% +7.1% +9.9% +6.5% +9.0% -0.5% +13% +13% +10% +4.7% +5.0% +5.1% +5.8% +8.3% +4.6
Slide 10: Overview: TV & Media
Overview TV & Media
Slide 11: TV & Media
TV & Media Service revenue Adj. EBITDA C More direct OTT subs. and ARPU Reported currency, in SEK millions, like for like growth Reported currency, in SEK millions, like for like growth Subscriptions ’000, ARPU in SEK +2.0% +0.2% -2.7% -2.4% -7.6% -40% +24% n/a n/a n/a 188 173 178 165 158 345 2,564
Slide 12: Overview: Financials
Overview Financials
Slide 13: Service Revenue & EBITDA
Service Revenue & EBITDA Service revenue Adjusted EBITDA Like for like growth Like for like growth Full Group Full Group Telco operations Telco operations 4.3% 4.7% 3.2% 2.5% 2.6% 1.6% 2.4% 2.3% 2.4% 0.8% 1.0% 1.9% 1.9% 0.5% 0.0% 1.2% 0.7% -0.6% -0.8% -2.0% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22
Slide 14: OPEX & CAPEX
OPEX & CAPEX OPEX excl. energy CAPEX excl. licenses Like for like growth Reported currency, in SEK billions +2.0% 5.0 4.0 3.7 3.9 3.7 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Mobile NW Fixed NW Product & IT Other ‒ Resource costs higher from salary inflation, partly offset by redundancies ‒ Reduction of SEK 0.
Slide 15: Cash Flow
Cash Flow Reported currency, in SEK billions Q2 23 Q2 22 Change ‒ Cash CAPEX increased mainly due to vendor financing impact of SEK 0.5bn as expected Adjusted EBITDA 7.8 7.7 0.1 ‒ Paid interest increase driven by higher interest rates Restructuring and other adj. items -0.3 -0.3 -0.1 ‒ Taxes slightl
Slide 16: Cash Flow trends
Cash Flow trends Operational free cash flow ‒ Cash flow generation for the full year weighted towards H2 Reported currency, in SEK billions, illustrative profile ‒ CAPEX to gradually reduce and expected to be materially lower in Q4 Operational free cash flow considering last year’s heightened level
Slide 17: Net debt & leverage
Net debt & leverage Net debt and leverage ‒ Net debt increased by SEK 5.4bn due to cash flow phasing, dividend paid Reported currency, in SEK billions and leverage ratio and FX effect on issued debt ‒ Leverage ratio increased to 2.66x, but to come down H2 from improved cash 2.49x 2.66x flow generati
Slide 18: Overview: Outlook
Overview Outlook
Slide 19: Outlook 2023 reaffirmed
Outlook 2023 reaffirmed Service revenue* Low single digit growth Adjusted EBITDA* Flat to low single digit growth CAPEX excl. licenses and spectrum** In the range of SEK 13-14 billion Structural part of Operational free cash flow In the range of SEK 7-9 billion * Like for like 19 ** Excluding CAPEX
Slide 20: Full focus on strategy execution and capital allocation
Full focus on strategy execution and capital allocation Telco growth momentum improved, supported by pricing, improving Consumer 1 trends and continued strong Enterprise services “beyond connectivity” Restore growth by inspiring our customers Digital infrastructure leadership built further with netw
Slide 21: Overview: Q&A
Overview Q&A
Slide 22: Overview: Appendix
Overview Appendix
Slide 23: Sustainability overview and key highlights
Sustainability overview and key highlights Three impact areas Climate and Digital Privacy and in focus circularity inclusion security Net zero by 2040 2 million individuals reached Top tier positions/ Our CO2 emissions halved by 2030 through digital inclusion initiatives preferred supplier ambitions
Slide 24: Telia's climate commitments
Telia’s climate commitments 2020 2022 2025 2030 2040 Achieve Net Zero by reducing value chain CO2e emissions (scope 1, 2 and 3) by 90%, in line with the new SBTi Net Zero Corporate Standard, and offset (neutralize) residual emissions* • Reduce CO2e emissions in the whole value chain (scope 1, 2 and
Slide 25: ESG awards and ratings
ESG awards and ratings MSCI ESG rating EcoVadis Sustainalytics “AAA” (highest) “Platinum supplier” rating 19.5 Low Risk, Industry rank 12 out of 228 CDP Climate Rating ISS ESG rating FTSE4Good A- -B (Prime status) (Included in FTSE4Good) 25
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