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CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
CMD C Europe 2009
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CMD C Europe 2009

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Presentation Market Central Europe from Tele2s Capital Markets Day 2009

Presentation Market Central Europe from Tele2s Capital Markets Day 2009

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  • 1. CENTRAL EUROPE 1 2009-09-17 Niklas Sonkin
  • 2. MARKET AREA CENTRAL EUROPE Niklas Sonkin Market Area Director
  • 3. INTRODUCTION Market Area Central Europe Represents 14 percent of total revenues Q2 2009 EBITDA up 9 percent H1 08 vs H1 09 Strong performance compared to competition Short- to Medium-term focus & activities The Baltic Manage economic turmoil and create a platform for future growth Croatia Reach EBITDA break even during 2H 2010 3 2009-09-17 Niklas Sonkin
  • 4. THE BALTIC REGION Building a platform for future growth
  • 5. THE BALTICS – DEEP RECESSION Source: SEB 5 2009-09-17 Niklas Sonkin
  • 6. OPERATIONAL PERFORMANCE SEK million Strong operational 600 REVENUE performance partly due to appreciating EUR 400 200 39 percent EBITDA margin in Lithuania Q2 2009 0 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 SEK million SEK million EBITDA - CAPEX EBITDA 200 160 160 120 120 80 80 40 40 0 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 0 -40 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 Lithuania Latvia Estonia 6 2009-09-17 Niklas Sonkin
  • 7. PERFORMANCE vs PEERS Estimated Mobile Revenue market share LITHUANIA 60,0% Provide the Best Deal Tele2 Omnitel Bite 45,0% Perceived price leadership 30,0% Network coverage and quality on a par with competition 15,0% 0,0% Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 LATVIA ESTONIA 75,0% 60,0% Tele2 LMT Bite Tele2 EMT Elisa 60,0% 45,0% 45,0% 30,0% 30,0% 15,0% 15,0% 0,0% 0,0% Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 7 2009-09-17 Niklas Sonkin
  • 8. TELE2 PERFORMANCE VS. PEERS ESTONIA YTD 2009 Revenue, YoY YTD 2009 EBITDA, YoY Tele2 (9%) (9%) EMT (Telia) (16%) (18%) Elisa (20%) (24%) Average (15%) (17%) LATVIA YTD 2009 Revenue, YoY YTD 2009 EBITDA, YoY Tele2 (11%) (22%) LMT (Telia) (17%) (21%) Bité +48% +30% Average (12%) (21%) LITHUANIA YTD 2009 Revenue. YoY YTD 2009 EBITDA, YoY Tele2 0% +15% Omnitel (Telia) (25%) (31%) Bité (18%) (8%) Average (17%) (14%) Source: Tele2 Research Memo: This is Tele2 YoY performance in local currency for mobile operations only. Comparable competition result (for mobile only) is our best estimate using their official reporting as primary source. Estonia: Impact of changed accounting principles regarding recognition of handsets revenue/ebitda is excluded from 2008 result. 8 2009-09-17 Niklas Sonkin
  • 9. CUSTOMER AND PRICING STRATEGY Tele2 will offer the best deal by combining perceived price leadership with expected quality of service Focus on relevant quality improvement Expand 2G rollout to cover gaps on roads and indoor coverage Tight control of sales and distribution channels 9 2009-09-17 Niklas Sonkin
  • 10. MARKET SHARE IN THE B2B SEGMENT ESTONIA 2008 2009E Tele2 14% 16% EMT (Telia) 57% 55% Elisa 29% 29% LATVIA 2008 2009E Tele2 15% 19% LMT (Telia) 83% 77% Bité 2% 4% LITHUANIA 2008 2009E Tele2 12% 14% Omnitel (Telia) 49% 47% Bité 39% 39% Source:Tele2 Research Memo: Estimated B2B revenue share 10 2009-09-17 Niklas Sonkin
  • 11. BUSINESS TO BUSINESS STRATEGY Concentrate on SME as a core Tele2 segment Take part in all public tenders and increase share of state- owned companies Offer the best deal Use customer recommendations in marketing strategies 11 2009-09-17 Niklas Sonkin
  • 12. CROATIA EBITDA break-even during 2H 2010
  • 13. OPERATIONAL PERFORMANCE SEK million Solid customer intake due to 400 REVENUE better customer perception 320 240 Better scale leading to 160 diminishing operational losses 80 0 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 SEK million SEK million EBITDA EBITDA - CAPEX 0 0 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 - 40 -40 - 80 -120 -80 -160 - 200 -120 - 240 13 2009-09-17 Niklas Sonkin
  • 14. PERFORMANCE vs PEERS Estimated Mobile Revenue market share Tele2 is gaining market share but still lacks economies of scale Competitors are defending their positions and high prices Tele2’s focus is on doubling the market share and becoming EBITDA positive 60,0% 45,0% 30,0% 15,0% 0,0% Q32007 Q42007 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 Tele2 T-Mobile VIPnet 14 2009-09-17 Niklas Sonkin
  • 15. STRATEGY Tele2 to be positioned as clear price leader Tele2 Croatia lacks sufficient scale and needs to double its market share We have a proactive approach on regulatory decisions and take action on tariff changes if necessary Tele2 will utilize the current economical downturn to prompt customers to save on mobile telecommunications 15 2009-09-17 Niklas Sonkin
  • 16. CROATIA PERFORMANCE HIGHLIGHTS YTD 2009 YTD 2009 Operators Revenue,YoY EBITDA, YoY Tele2 +55% +27% T-Mobile 0% +7% Vipnet (7%) (19%) Average +1% (2%) Changes in Vipnet and T-Mobile EBITDA YoY are driven by Tele2 National roaming contracts, as Tele2 used Vipnet in 2008, but shifted to T-Mobile in 2009 Memo: This is Tele2 YoY performance in local currency for mobile operations only. Comparable competition result (for mobile only) is our best estimate using their official reporting as primary source. 16 2009-09-17 Niklas Sonkin
  • 17. CROATIA – ROAD TO POSITIVE EBITDA To achieve positive EBITDA, Tele2 needs to: Further increase market share to get scale At least 20 percent revenue market share to align business with group targets for the whole operation Further reduce National Roaming share of total traffic Increase Tele2 share of incoming tourist roaming revenue 17 2009-09-17 Niklas Sonkin
  • 18. STRATEGY TO INCREASE MARKET SHARE Improve quality perception Use the current economical downturn to stress the saving opportunity for the customers Improve sales experience in Tele2 shops & visibility in FMCG channel Increase focus on retention and prolonging customer lifetime 18 2009-09-17 Niklas Sonkin
  • 19. NETWORK DEPLOYMENT Reduce NR share of traffic by continued network rollout and by closing pockets for NR traffic In 2009, we will close five pockets for NR traffic Osijek September Pula October Zadar November Split December Rijeka December 19 2009-09-17 Niklas Sonkin
  • 20. INCREASE SHARE OF ROAMING Further increase roaming agreements with world-wide operators mainly focusing on Europe. We now have 182 launched operators for inbound roaming Keep increasing preferred steering for voice/data Concentrate on data roaming which is growing rapidly Adapt network rollout schedule to roaming needs 20 2009-09-17 Niklas Sonkin
  • 21. OUTLOOK FOR CROATIA ”WE WILL REACH EBITDA BREAK- EVEN DURING 2H 2010” 21 2009-09-17 Niklas Sonkin
  • 22. Q&A 22 2009-09-17 Niklas Sonkin
  • 23. SUMMARY Continue with traditional Tele2 practices: Perceived price leadership Provide excepted quality Use current economical environment to further reduce costs: Acquisition costs promoting sim-only tariff plans with no need for subsidized handsets Renegotiate all major contracts for media, CapEx etc. 23 2009-09-17 Niklas Sonkin

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