FIRST QUARTER 2013Tele2 ABApril 18, 2013
2AgendaAbout Q1 2013Financial reviewConcluding remarks
3Tele2 Group HighlightsNet mobile customer intakeof 313 thousand leading to atotal customer base of 15.7millionCurrency ad...
Sweden Build on mobile growth and 4G roll-outcoupled with household / corporate fiberstrategy Continue to take market sh...
5 Net sales amounted to SEK 3,080 million and EBITDA amounted toSEK 834 million Mobile service revenue growth of 3.5% Yo...
6HighlightsExternal Churn down 24%Comviq ToGo roll-outcontinuesPostpaid underlyingrevenue growth 12% inQ1Tele2 stores roll...
7Mobile business shows stable development-11%+2%0%-4%+10%+12%+4%+5%-10%
8Network roll-out continues according to planRollout of LTE 800 and LTE 1800commenced23% of handsets sold in Q1 4Genabled,...
9Smartphone market developmentRegular handset SmartphoneNote: Postpaid residential, quantity of handsetsSMARTPHONE INSTALL...
10Dual brand strategy keeps customers in Tele2Sweden• External churn down24% since launch• Cannibalizationbetween brands o...
11New products launched to capture B2BgrowthLaunch of Tele2 Mobile Soft Switch,targeting small and medium sizedenterprises...
12Customer Operation actions deliver resultsCustomer satisfactionincrease in all segmentsCost/customer showsdecreasing tre...
13Tele2 Sweden forward looking statementThe following assumptions should betaken into account when estimating theoperation...
Norway Roll-out own network and focus onbucket-price subscriptions Operating with symmetric termination asof January 1st...
15Q1 Highlights Tele2 NorwaySEK MillionSEK MillionThousands of customersEBITDA andEBITDA MARGINNET SALESCUSTOMER BASE andC...
16Overview of the Norwegian mobile marketMOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONSThousand of subscribers* Q1 13 onl...
17Smartphone market developmentRegular handset SmartphoneNote: Postpaid residential, quantity of handsetsSMARTPHONE INSTAL...
18Continued focus on accelerated network roll-out strategyStrong focus on rolling outNorway’s third mobile networkIncrease...
19Frequencies: current distributionShare of allotted spectrum in Norway and Europe (prior to 800 MHz auction)Focus on secu...
20Tele2 Norway - BrandsNorwegian mobile market: brands and positioningTele2:Easy to understand products with added value t...
21Distribution channelsOnline channels
22Customer service developmentCustomer satisfaction development Norway80% = World Class Standard
23Goals for Norway25% market shareNumber 2 position
24Tele2 Norway forward looking statementThe following assumptions should betaken into account when estimating theoperation...
Netherlands Defend fixed broadband & expand fiberfootprint Mobile growth in current MVNO structure Roll-out of 4G netwo...
26Q1 Highlights Tele2 Netherlands Preparation for roll-out of nationwide 4G network is on-going Benefit from national fi...
27Continue contribution to Group’s resultsTele2 NL Total customer base development (x1,000)Mobile growth sets Tele2 NL up ...
28Defend DSL base while expanding FiberfootprintDutch broadband technology market share forecast*Source: TelecompaperQuart...
29Tele2 NL runner up in fixed B2B segmentStrongcustomer baseBroad servicespectrumOwninfrastructureATM’S TRAINS SCHOOLS &UN...
30Optimizing MVNO operationQUARTERLY MOBILE NET ADDITIONSCompetitive proposition Optimizing distribution Growth in B2B Mob...
314G building blocks for successLTEFrequency sweet spot- 2.6 Ghz – 2x20MHz- 800 Mhz – 2x10MhzBoth bands are emptyand avail...
32Investing in 4GIn 2013 the Dutch Tele2 NL starts the roll-outof its nationwide 4G network. Current status: Expanding MN...
33Tele2 Netherlands forward lookingstatementThe following assumptions should be takeninto account when estimating the oper...
 Continued rapid market share growth inKazakhstan Efficiency improvements in Baltics Growth and profitability improveme...
35Q1 Highlights Tele2 Germanyand Tele2 AustriaTele2 Germany: Better Revenue and EBITDA results than expected,mainly drive...
3602505007501,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 13Q1 Highlights Tele2 Estonia, Latvia andLithuaniaLithuaniaThousands of custom...
37Q1 Highlights Tele2 Croatia Strong net intake in postpaid and prepaid segments Continuing to improve market positionCU...
38Improving financials and customer base:Q1 2012 vs. Q1 2013 comparisonNET SALES GROWTH NET INTAKE GROWTH+11% +79%Stable g...
39Overview of the Croatian mobile marketMOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONSThousands of subscribers15.1%T-Mobi...
40Q1 Highlights Tele2 Kazakhstan Net intake of 252 thousand customers and YoY revenuegrowth of 75% Total number of custo...
41Overview of the Kazakh mobile marketMOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONSThousands of subscribers13.0%Dalacom/...
42On track for EBITDA break-even2H 2013MTR DEVELOPMENT (KZT)GM1% MARGIN DEVELOPMENTNew MTR agreement ineffect since end of...
43Healthy growth of data revenuesDATA REVENUE AS SHARE OF SERVICE REVENUE* DEVELOPMENT5.9% 15.1% 26.7%Increasing part of r...
44Recognition from the customers and themarketCUSTOMER SATISFACTION DEVELOPMENTTele2 acknowledged as themost affordable op...
45Tele2 Kazakhstan forward-looking statementThe following assumptions should be takeninto account when estimating the oper...
46AgendaAbout Q1 2013Financial reviewConcluding remarks
47Group result Q1 2013SEK million Q1 2013 Q1 2012 FY 2012 ▲%Net sales 7,298 7,433 30,742 -1.8%EBITDA 1,488 1,506 6,240 -1....
48Currency movements YTDEUR/EUR pegged currencies represent39% of external sales and 47% of EBITDA-7%-6%-5%-4%-3%-2%-1%0%E...
49DepreciationChange year-on-year for Q1• Reduction in Sweden: SEK -57 million, mainlydue to fully depreciated assets rela...
50Financial itemsSEK millionFinancial items in income statement Q1 2013 Q1 2012 FY 2012Interest income/costs -130 -96 -494...
51Financial items, excl. RussiaSEK millionFinancial items in income statement Q1 2013 Q1 2012 FY 2012Interest income/costs...
52TaxesSEK millionTaxes in income statement Q1 2013 Q1 2012 FY 2012Normal -200 -198 -609One-off - - 163Total -200 -198 -44...
53Taxes, excl. RussiaSEK million• Full-year 2013 cash flow taxes of approximately SEK 300 millionTaxes in income statement...
54Cash flowSEK million Q1 2013 Q1 2012 FY 2012OPERATING ACTIVITIESCash flow from operations, excl. taxes and interest 2,74...
55Cash flow, excl. Russia• CapEx full-year 2013 of approximately SEK 6 billionSEK million Q1 2013 Q1 2012 FY 2012OPERATING...
56Pro forma financial debt profileSources of fundingSEK billion12.116.915.214.9 15.8-2.50.02.55.07.510.012.515.017.520.0Q1...
57Debt maturity and currency profileDebt maturity profileGross debt SEK 16.3 billion (incl. unutilized SEK 26.1 billion)De...
58Tele2 in Debt Capital Markets excl. Russia* Fixing rate March 28, 2013Instrument Date of issue Maturity date Volume in M...
59Net debt developmentSEK billion15.88.53.2-23.012.5-10.0-5.00.05.010.015.020.0Net debt Q1 Proceeds from saleof Tele2 Russ...
60Share Redemption ProgramIndicative timelineShareholders’ meetingLast day of trading in sharesbefore share split and righ...
61AgendaAbout Q1 2013Financial reviewConcluding remarks
62Tele2 Well-Positioned for Future GrowthLeading Infrastructure-Based Challengerwith an Attractive Market MixUniquely Posi...
63Leading Infrastructure-BasedChallenger with an Attractive Market MixInfrastructure-based challengerAttractive macroecono...
64Tele2 Sweden - Mb/weekDemand Growth – European Mobile Data UsageMBB Penetration (“Large Screen Data Only”)EUR/Sub/monthU...
6533.1%30.8%28.0% 27.1%25.8% 25.6%23.2% 23.1% 22.3% 21.7%Strong Opportunities for EnhancedCost Efficiency-0.9%AT Kearney c...
66Unique Position for Continued GrowthRevenue Tele2 GroupSEK BnEBITDA Tele2 GroupSEK Bn Tele2 expects to achieve compound...
67Q&A
Tele2 отчиталась за 1q2013
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Tele2 отчиталась за 1q2013

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Tele2 рассказала об итогах работы Tele2 Казахстан в 1q2013. Разбор смотрите в фейсбуке https://www.facebook.com/KZTL.kz

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Tele2 отчиталась за 1q2013

  1. 1. FIRST QUARTER 2013Tele2 ABApril 18, 2013
  2. 2. 2AgendaAbout Q1 2013Financial reviewConcluding remarks
  3. 3. 3Tele2 Group HighlightsNet mobile customer intakeof 313 thousand leading to atotal customer base of 15.7millionCurrency adjusted net salesgrowth for the Groupamounted to 0.2%,corresponding to SEK 7.3billionEBITDA amounted to SEK1.5 billion, equivalent to amargin of 20%Divestment of Tele2 Russia,resulting in a cashconsideration of SEK 23billion, including net debtCustomer intake Net salesEBITDA Other
  4. 4. Sweden Build on mobile growth and 4G roll-outcoupled with household / corporate fiberstrategy Continue to take market share in B2Bsegment Continue to handle prepaid to postpaidmigration, keeping external churn downPopulation9.6 millionTele2 SwedenHome market and test bed for new servicesRepresents 42% of total net sales in Q1 2013Focus
  5. 5. 5 Net sales amounted to SEK 3,080 million and EBITDA amounted toSEK 834 million Mobile service revenue growth of 3.5% YoY (excluding handsetsales) Mobile EBITDA growth of 12% YoY, equalling a margin of 30%Q1 Highlights Tele2 SwedenMobile Fixed telephonyFixed broadband OtherCustomer base (left)Customer netintake (right)EBITDAmargin (right)YoY net salesgrowth (right)SEK MillionSEK MillionThousands of customersEBITDA andEBITDA MARGINNET SALES andYoY NET SALES GROWTHMOBILE CUSTOMER BASE andCUSTOMER INTAKE-80-40040803,0003,2503,5003,7504,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 13-4%-2%0%2%4%01,0002,0003,0004,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 130%10%20%30%40%02505007501,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
  6. 6. 6HighlightsExternal Churn down 24%Comviq ToGo roll-outcontinuesPostpaid underlyingrevenue growth 12% inQ1Tele2 stores roll-out – total45 stores in Q1Large Norden launched,delivering ASPU upliftLaunch of Tele2 MobileSoft SwitchCustomer satisfactionreaches 83% in LargeEnterprise segment andshows positive trend for allbrands4G roll-out continues,reaching 99% populationcoverage in Q1Augmenting Billing systemand data warehouse,leading to a betterunderstanding of ourcustomersComviqCustomer OperationsBusinessResidentialNetwork Operations IT
  7. 7. 7Mobile business shows stable development-11%+2%0%-4%+10%+12%+4%+5%-10%
  8. 8. 8Network roll-out continues according to planRollout of LTE 800 and LTE 1800commenced23% of handsets sold in Q1 4Genabled, excluding iPhone 599% population coverage4G
  9. 9. 9Smartphone market developmentRegular handset SmartphoneNote: Postpaid residential, quantity of handsetsSMARTPHONE INSTALLED BASESALES of TOP TEN MOBILE PHONESTELE2 SWEDEN (Q1 2013)(4G)4G4G 4G4G
  10. 10. 10Dual brand strategy keeps customers in Tele2Sweden• External churn down24% since launch• Cannibalizationbetween brands onpostpaid offeringslower than expected
  11. 11. 11New products launched to capture B2BgrowthLaunch of Tele2 Mobile Soft Switch,targeting small and medium sizedenterprisesNew tariff plan targeting high-valuesegment delivers ASPU uplift
  12. 12. 12Customer Operation actions deliver resultsCustomer satisfactionincrease in all segmentsCost/customer showsdecreasing trendComviq chat deliversimproved customersatisfaction while maintaininglow costsCUSTOMER SATISFACTION DEVELOPMENT
  13. 13. 13Tele2 Sweden forward looking statementThe following assumptions should betaken into account when estimating theoperational performance of the Swedishmobile operations in 2013: Tele2 expects total revenue of between SEK10,100 - 10,300 million. Tele2 expects EBITDA of between SEK 2,900- 3,100 million.
  14. 14. Norway Roll-out own network and focus onbucket-price subscriptions Operating with symmetric termination asof January 1st 2013 Upcoming frequency auction expected totake place in Q3/Q4, 2013Focus
  15. 15. 15Q1 Highlights Tele2 NorwaySEK MillionSEK MillionThousands of customersEBITDA andEBITDA MARGINNET SALESCUSTOMER BASE andCUSTOMER INTAKEMobile Fixed telephonyFixed broadband OtherCustomer base (left)Customer netintake (right)EBITDAmargin (right) Strong focus on network roll-out Revenue and EBITDA negatively affected by lowered MTR Tele2 Norway reported total external revenue of SEK 1,050million, of which SEK 982 million was mobile revenue Tele2 Norway reached an EBITDA contribution of SEK 39million, equaling an EBITDA margin of 4% percent At the end of the quarter 72% of Tele2 and One Call’scustomers had fixed fee subscriptions-150153004008001,2001,600Q1 12 Q2 12 Q3 12 Q4 12 Q1 1304008001,2001,600Q1 12 Q2 12 Q3 12 Q4 12 Q1 13-5%0%5%10%15%-4004080120Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
  16. 16. 16Overview of the Norwegian mobile marketMOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONSThousand of subscribers* Q1 13 only Tele2 net additions19%
  17. 17. 17Smartphone market developmentRegular handset SmartphoneNote: Postpaid residential, quantity of handsetsSMARTPHONE INSTALLED BASESALES of TOP TEN MOBILE PHONESTELE2 NORWAY (Q1 2013)65 % access the internet on their smartphones at least once a day*Strong migration from voice to dataStrong migration from fixed data to mobile data*Source: TNS Gallup, Interbuss-undersøkelse: Forbruker og Media, Q3 2012
  18. 18. 18Continued focus on accelerated network roll-out strategyStrong focus on rolling outNorway’s third mobile networkIncrease on-net shareIncrease population coverageSites ready (October 2010 – March 2013)%Population coverage development
  19. 19. 19Frequencies: current distributionShare of allotted spectrum in Norway and Europe (prior to 800 MHz auction)Focus on securing resources in the national auction for frequencies in the 800-,900- and 1,800 MHz bandwidthThe auction is expected to take place in Q3/Q4 2013
  20. 20. 20Tele2 Norway - BrandsNorwegian mobile market: brands and positioningTele2:Easy to understand products with added value that suits your needsOne Call:Focused on simplicity and value for moneyMy Call:Market leader in the multicultural marketNetwork Norway/ Tele2 Business:Focusing on small/medium business customersResidentialBusiness
  21. 21. 21Distribution channelsOnline channels
  22. 22. 22Customer service developmentCustomer satisfaction development Norway80% = World Class Standard
  23. 23. 23Goals for Norway25% market shareNumber 2 position
  24. 24. 24Tele2 Norway forward looking statementThe following assumptions should betaken into account when estimating theoperational performance of theNorwegian mobile operations in 2013: Tele2 expects total revenue of between SEK4,200 - 4,300 million. Tele2 expects EBITDA of between SEK 70 -80 million. Tele2 expects Capex of between SEK 900 -1,000 million.
  25. 25. Netherlands Defend fixed broadband & expand fiberfootprint Mobile growth in current MVNO structure Roll-out of 4G networkPopulation16.7 millionTele2 NetherlandsLeading the group in B2B and making transition tofull MNORepresents 18% of total net sales in Q1 2013Focus
  26. 26. 26Q1 Highlights Tele2 Netherlands Preparation for roll-out of nationwide 4G network is on-going Benefit from national fiber network, extending to FttX Tele2 was able to further grow its customer base driven byhigh mobile intake Lower EBITDA caused by lower broadband base & mobilecustomer acquisitionSEK MillionSEK MillionThousands of customersEBITDA andEBITDA MARGINNET SALES andYoY NET SALES GROWTHCUSTOMER BASE andCUSTOMER INTAKEMobile Fixed telephonyFixed broadband OtherCustomer base (left)Customer netintake (right)EBITDAmargin (right)YoY net salesgrowth (right)-40-200204003006009001,200Q1 12 Q2 12 Q3 12 Q4 12 Q1 13-10%0%10%20%30%40%-2000200400600800Q1 12 Q2 12 Q3 12 Q4 12 Q1 13-20%-13%-5%3%10%04008001,2001,600Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
  27. 27. 27Continue contribution to Group’s resultsTele2 NL Total customer base development (x1,000)Mobile growth sets Tele2 NL up for transformation into full MNOGrowing demand for more fixed broadband bandwidthGrowth opportunities in B2B Fixed Broadband
  28. 28. 28Defend DSL base while expanding FiberfootprintDutch broadband technology market share forecast*Source: TelecompaperQuarterly net additions of top six broadband providers(x1,000)Tele2 is ramping up FiberActivities FttH coverage will be extended.Currently 1,1 Million householdspassed, annual growth of 300-350 thousand households
  29. 29. 29Tele2 NL runner up in fixed B2B segmentStrongcustomer baseBroad servicespectrumOwninfrastructureATM’S TRAINS SCHOOLS &UNIVERSITY’SHEALTHCARECASINO’S• One of the largest fiber optic networks• Total length 5,213 km• Access to 55 radio nodes
  30. 30. 30Optimizing MVNO operationQUARTERLY MOBILE NET ADDITIONSCompetitive proposition Optimizing distribution Growth in B2B MobileMVNO growth – road to successful MNO launch(x1000)MOBILE SUBSCRIBERS – MARKET SHARE Q4 2012
  31. 31. 314G building blocks for successLTEFrequency sweet spot- 2.6 Ghz – 2x20MHz- 800 Mhz – 2x10MhzBoth bands are emptyand availableExisting base of morethan 1 millioncustomers for crossand up saleFastest growingmobile operator forthird consecutivequarter,+195 thousandcustomers YoYFully operational fiberbackbone in placeTele2 NL has one ofthe largest fiber opticnetworks in NLStrong market sharein B2B segmentHigh price levels formobile broadbandleaves room forcompetition
  32. 32. 32Investing in 4GIn 2013 the Dutch Tele2 NL starts the roll-outof its nationwide 4G network. Current status: Expanding MNO team Planning of base stations 40% of geographical coverage = 1,000base stations 100% geographical coverage Procurement phase for network equipment Building on the 4G experience and learningswithin the Tele2 GroupThe MNO project is on track and the aim is tolaunch as soon as possible
  33. 33. 33Tele2 Netherlands forward lookingstatementThe following assumptions should be takeninto account when estimating the operationalperformance of the Dutch mobile operationsin 2013: Expected revenue of SEK 1,600 – 1,700 million. Tele2 expects EBITDA of between SEK -50 to -75million. Tele2 expects Capex of between SEK 2,000 – 2,500million, whereof licences for 4G/LTE SEK 1,400million. The mobile operations should reach EBITDA break-even 3 years after the commercial launch of 4G/LTEservices.
  34. 34.  Continued rapid market share growth inKazakhstan Efficiency improvements in Baltics Growth and profitability improvements inCroatia Stable financial performance in Germanyand AustriaFocusCentral Europeand EurasiaPopulation118 millionRepresents 25% of total net sales in Q12013Estonia 2%; Latvia 3%; Lithuania 4%;Croatia 4%; Kazakhstan 4%; Germany 3%;Austria 4%
  35. 35. 35Q1 Highlights Tele2 Germanyand Tele2 AustriaTele2 Germany: Better Revenue and EBITDA results than expected,mainly driven by better performance in Fixed via Mobile(FVM)Tele2 Austria: Continued focus on growing the B2B segment andfinalizing the integration of Silver Server. Data intakeremains steady throughout the quarter, delivering stablefinancial performanceTELE2 GERMANYEBITDA and EBITDA MARGINTELE2 AUSTRIAEBITDA and EBITDA MARGINEBITDA margin (right)EBITDA (left)EBITDA margin (right)EBITDA (left)SEK Million SEK Million0%10%20%30%40%0306090120Q1 12 Q2 12 Q3 12 Q4 12 Q1 130%10%20%30%40%0306090120Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
  36. 36. 3602505007501,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 13Q1 Highlights Tele2 Estonia, Latvia andLithuaniaLithuaniaThousands of customersLithuaniaSEK Million %Tele2 Estonia: Sales and EBITDAnegatively affected bydecreased interconnect Increased focus onefficiency improvements EBITDA affected by pricepressure in both postpaidand prepaid segments Swap of network continuingTele2 Latvia: Tele2 Latvia maintains highefficiency in a competitivemarket EBITDA margin amountedto 33% Swap of network continuingTele2 Lithuania: Strong net intake of 12,000customers Continued stableperformance, EBITDAmargin amounted to 40% Swap of network continuingCUSTOMER INTAKE NET SALES andYoY NET SALES GROWTHEBITDA MARGIN1%-1%-25%-20-5102540Q1 12 Q2 12 Q3 12 Q4 12 Q1 130%10%20%30%40%50%Q1 12 Q2 12 Q3 12 Q4 12 Q1 13LatviaEstoniaLatviaEstonia % YoY net sales growthLithuaniaLatviaEstonia
  37. 37. 37Q1 Highlights Tele2 Croatia Strong net intake in postpaid and prepaid segments Continuing to improve market positionCUSTOMER BASE andCUSTOMER INTAKEThousands of customersCustomer base (left)Customer netintake (right)SEK MillionNET SALES andYoY NET SALES GROWTHYoY net salesgrowth (right)Net sales (left)EBITDA andEBITDA MARGINSEK MillionEBITDAmargin (right)EBITDA (left)-10%-3%5%13%20%0125250375500Q1 12 Q2 12 Q3 12 Q4 12 Q1 130%3%6%9%12%015304560Q1 12 Q2 12 Q3 12 Q4 12 Q1 13-60-40-20020406002505007501,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
  38. 38. 38Improving financials and customer base:Q1 2012 vs. Q1 2013 comparisonNET SALES GROWTH NET INTAKE GROWTH+11% +79%Stable growth of revenue and net intake thanks to improved bestdeal offers and effective customer base management
  39. 39. 39Overview of the Croatian mobile marketMOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONSThousands of subscribers15.1%T-MobileTele2 VIPnet13.8%** Q1 13 only Tele2 net additionsT-MobileTele2 VIPnet
  40. 40. 40Q1 Highlights Tele2 Kazakhstan Net intake of 252 thousand customers and YoY revenuegrowth of 75% Total number of customers amounted to 3.7 million New MTR agreement implemented with a positive impacton EBITDA and a glide path for 2014 and 2015 The Ministry of Transportation and Communications hasinitiated discussions with operators regarding MNPimplementation roadmapCUSTOMER BASE andCUSTOMER INTAKEThousands of customersCustomer base (left)Customer netintake (right)SEK MillionNET SALES andYoY NET SALES GROWTHYoY net salesgrowth (right)Net sales (left)EBITDA andEBITDA MARGINSEK MillionEBITDAmargin (right)EBITDA (left)02505007501,00001,0002,0003,0004,000Q1 12 Q2 12 Q3 12 Q4 12 Q1 130%125%250%375%500%075150225300Q1 12 Q2 12 Q3 12 Q4 12 Q1 13-100%-75%-50%-25%0%-160-80080160Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
  41. 41. 41Overview of the Kazakh mobile marketMOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONSThousands of subscribers13.0%Dalacom/PathwordTele2 Kcell/ActivBeeline Dalacom/PathwordTele2 Kcell/ActivBeeline6.4%** Q1 13 only Tele2 net additionsContinued customer growth with large share of market net additions
  42. 42. 42On track for EBITDA break-even2H 2013MTR DEVELOPMENT (KZT)GM1% MARGIN DEVELOPMENTNew MTR agreement ineffect since end ofNovember 2012 with glidepath for 2014 and 2015Continuously improvingGM1 margin
  43. 43. 43Healthy growth of data revenuesDATA REVENUE AS SHARE OF SERVICE REVENUE* DEVELOPMENT5.9% 15.1% 26.7%Increasing part of revenues generated by growth in data usage*excl interconnect and equipment sales
  44. 44. 44Recognition from the customers and themarketCUSTOMER SATISFACTION DEVELOPMENTTele2 acknowledged as themost affordable operator inKazakhstan by the independentRussian research agencyComNews in February 2013Strong performance incustomer satisfaction – 80%equals world class standard
  45. 45. 45Tele2 Kazakhstan forward-looking statementThe following assumptions should be takeninto account when estimating the operationalperformance of the Kazakh mobile operationsin 2013: Tele2 expects total revenue of between SEK 1,700and 1,800 million. Tele2 expects EBITDA of between SEK -100 and -200million. Tele2 expects Capex of between SEK 550 and 650million. Tele2 expects to reach a long-term mobile customermarket share of 30 percent.
  46. 46. 46AgendaAbout Q1 2013Financial reviewConcluding remarks
  47. 47. 47Group result Q1 2013SEK million Q1 2013 Q1 2012 FY 2012 ▲%Net sales 7,298 7,433 30,742 -1.8%EBITDA 1,488 1,506 6,240 -1.2%EBITDA margin (%) 20.4% 20.3% 20.3% 0.1%Depreciation & associated companies -820 -961 -3,707 -14.7%Depreciation ofnet sales (%) -11.1% -12.9% -12.0% 1.8%One-off items 2 1 -558EBIT 670 546 1,975 22.7%Normalized EBIT 668 545 2,533 22.6%Normalized EBIT margin (%) 9.2% 7.3% 8.2% 1.8%Financial items -117 -84 -553Taxes -200 -198 -446Net profit from continuing operations 353 264 976 33.7%Discontinued operations 656 605 2,288Net profit 1,009 869 3,264 16.1%
  48. 48. 48Currency movements YTDEUR/EUR pegged currencies represent39% of external sales and 47% of EBITDA-7%-6%-5%-4%-3%-2%-1%0%EUR KZT NOKAverage YTD March 2013 vs. Average YTD March 2012Fixing rate March 2013 vs. December 31, 2012
  49. 49. 49DepreciationChange year-on-year for Q1• Reduction in Sweden: SEK -57 million, mainlydue to fully depreciated assets related to GSMnetwork in Q2 2012• Reduction in Kazakhstan of SEK -29 million• Reduction in the Baltics of SEK -37 millionDepreciation andDepreciation as a percentage of net salesSEK million10.0%10.5%11.0%11.5%12.0%12.5%13.0%13.5%14.0%02004006008001,0001,200Q112 Q212 Q312 Q412 Q113Depreciation Depreciation of net sales (%)
  50. 50. 50Financial itemsSEK millionFinancial items in income statement Q1 2013 Q1 2012 FY 2012Interest income/costs -130 -96 -494Exchange rate differences, external 15 -17 -20Exchange rate differences, intragroup 37 68 116Other financial items -39 -39 -155Total -117 -84 -553Financial items in cash flow statement Q1 2013 Q1 2012 FY 2012Interest paid -174 -59 -668
  51. 51. 51Financial items, excl. RussiaSEK millionFinancial items in income statement Q1 2013 Q1 2012 FY 2012Interest income/costs -130 -96 -494Exchange rate differences, external 15 -17 -20Exchange rate differences, intragroup 37 68 116Other financial items -39 -39 -155Total -117 -84 -553Financial items in cash flow statement Q1 2013 Q1 2012 FY 2012Interest paid -105 -56 -292
  52. 52. 52TaxesSEK millionTaxes in income statement Q1 2013 Q1 2012 FY 2012Normal -200 -198 -609One-off - - 163Total -200 -198 -446Taxes in cash flow statement Q1 2013 Q1 2012 FY 2012Normal -332 -202 -989One-off - - -Total -332 -202 -989
  53. 53. 53Taxes, excl. RussiaSEK million• Full-year 2013 cash flow taxes of approximately SEK 300 millionTaxes in income statement Q1 2013 Q1 2012 FY 2012Normal -200 -198 -609One-off - - 163Total -200 -198 -446Taxes in cash flow statement Q1 2013 Q1 2012 FY 2012Normal -155 -34 -110One-off - - -Total -155 -34 -110
  54. 54. 54Cash flowSEK million Q1 2013 Q1 2012 FY 2012OPERATING ACTIVITIESCash flow from operations, excl. taxes and interest 2,748 2,576 10,744Interest paid -174 -59 -668Taxes paid -332 -202 -989Change in working capital -667 -419 -408Cash flow from operating activities 1,575 1,896 8,679CAPEXCapEx other -1,095 -830 -4,609CapEx NL LTE -1,366 - -Total CapEx -2,461 -830 -4,609Cash flow after CapEx -886 1,066 4,070
  55. 55. 55Cash flow, excl. Russia• CapEx full-year 2013 of approximately SEK 6 billionSEK million Q1 2013 Q1 2012 FY 2012OPERATING ACTIVITIESCash flow from operations, excl. taxes and interest 1,565 1,509 6,020Interest paid -105 -56 -292Taxes paid -155 -34 -110Change in working capital -453 -388 -651Cash flow from operating activities 852 1,031 4,967CAPEXCapEx other -779 -587 -3,283CapEx NL LTE -1,366 - -Total CapEx -2,145 -587 -3,283Cash flow after CapEx -1,293 444 1,684
  56. 56. 56Pro forma financial debt profileSources of fundingSEK billion12.116.915.214.9 15.8-2.50.02.55.07.510.012.515.017.520.0Q112 Q212 Q312 Q412 Q113Revolving Credit Facility Russian bond Commercial paperSwedish bond Norwegian bond Other financingPut option Kazakhstan Cash Pro forma net debt
  57. 57. 57Debt maturity and currency profileDebt maturity profileGross debt SEK 16.3 billion (incl. unutilized SEK 26.1 billion)Debt currency profileGross debt SEK 16.3 billion5.64.10.8 1.20.13.70.8-20246810121416201304 2013 2014 2015 2016 2017 2018<Bonds (excl. RU) Commercial papersOther bank loans Put option, fin.lease and otherRussian debt Unutilized5.55.62.01.41.60.1SEK incl. FX swap RUBEUR incl. FX swap NOKKZT USD
  58. 58. 58Tele2 in Debt Capital Markets excl. Russia* Fixing rate March 28, 2013Instrument Date of issue Maturity date Volume in MSEK*NOK Bond 5yr 20/02/2012 24/02/2017 1,000 MNOK 1,113NOK Bond 3yr 20/02/2012 24/02/2015 300 MNOK 334SEK Bond 08/05/2012 17/05/2017 1,500 MSEK 1,500SEK Bond 08/05/2012 15/05/2017 800 MSEK 800SEK PP Bond 27/09/2012 27/03/2014 500 MSEK 500SEK PP Bond 06/12/2012 06/03/2015 750 MSEK 750SEK PP Bond 03/01/2013 3 months rolling 500 MSEK 500SEK PP Bond 18/02/2013 18/02/2020 250 MSEK 250SEK CP on-going within 1yr 2,055 MSEK 2,055Total 7,803
  59. 59. 59Net debt developmentSEK billion15.88.53.2-23.012.5-10.0-5.00.05.010.015.020.0Net debt Q1 Proceeds from saleof Tele2 RussiaProposed ordinarydividend(SEK 7.10)Proposed shareredemption program(SEK 28.0)Pro forma net debt
  60. 60. 60Share Redemption ProgramIndicative timelineShareholders’ meetingLast day of trading in sharesbefore share split and rightto receive redemptionsharesExpected date forpayment ofredemption amountShare splitTrading inredemption sharesTime frame 4 weeks13 May15 May20 May21 May 5 June11 June
  61. 61. 61AgendaAbout Q1 2013Financial reviewConcluding remarks
  62. 62. 62Tele2 Well-Positioned for Future GrowthLeading Infrastructure-Based Challengerwith an Attractive Market MixUniquely Positioned to Capitalize on MobileData and Internet GrowthStrong Opportunities for Enhanced CostEfficiencyUnique Position for Continued Growth1 23 4
  63. 63. 63Leading Infrastructure-BasedChallenger with an Attractive Market MixInfrastructure-based challengerAttractive macroeconomicfootprintBest commercial offer in themarketUniquely positioned to gain marketshare from incumbentsStrong Spectrum Portfolio Best Commercial Offer in the MarketAttractive Market MixTele2Telia
  64. 64. 64Tele2 Sweden - Mb/weekDemand Growth – European Mobile Data UsageMBB Penetration (“Large Screen Data Only”)EUR/Sub/monthUniquely Positioned to Capitalise onMobile Data and Internet GrowthAug 2011 May 2012 Jan 2013NetherlandsAustriaGermanyPbSource: Internal company information, Arthur D little , BNP Paribas and Analysys MasonInterest in telecommunications keeps growingand the data deluge continues to floodacross our entire footprintWe are in an excellent position to cater forthe surging data demand through 4G in allour mobile marketsAn efficient pricing model for data is stillbeing designed, which we see as a majoropportunity
  65. 65. 6533.1%30.8%28.0% 27.1%25.8% 25.6%23.2% 23.1% 22.3% 21.7%Strong Opportunities for EnhancedCost Efficiency-0.9%AT Kearney cost benchmarkReduction in Network CostCost LeadershipBest practice in Swedish network JVstructureSignificant mobile network Capex andopex savingsNetherlandsOpportunities to co-build due toobligation to share sites and towersT2 2010 T2 2011Principle of JV Saving CAPEX & OPEXCost LeadershipTele2 continues to reduce the cost gapbut is still second best
  66. 66. 66Unique Position for Continued GrowthRevenue Tele2 GroupSEK BnEBITDA Tele2 GroupSEK Bn Tele2 expects to achieve compoundedannual revenue growth for the Group ofbetween 5 – 7 percent until year 2015,reaching at least SEK 35.6 billion. Tele2 expects to achieve compoundedannual EBITDA growth for the Group ofbetween 10 – 12 percent until year 2015,reaching at least SEK 8.3 billion. All operations in the Group should haveat least 20 percent return on capitalemployed (ROCE). The positive operational developmentover the next three years willpredominantly be driven by strongmobile development in Sweden, theNetherlands, Norway and Kazakhstan.
  67. 67. 67Q&A
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