CMD2011 - Lars Nilsson - The best of both worlds in numbers

Capital Markets Day 2011
The Best of Both Worlds – In the NumbersLars Nilsson

In the Rear ViewMirror
In Riga (2007)
A more focused (mobile) company
Introduction of financial hurdles and operational goals
Increased transparency
In Stockholm (2009)
House in order
ROCE and EBITDA
Debt
Financial targets
Priorities

Improved Financial Results

ROCE has Increased 12 Percentage Points Since Q3 2007

BalanceSheet

Net Debt and Dividend Targets
Shareholder remuneration
Tele2 will seek to pay a progressive ordinary dividend of no less than 50 percent of net income excluding one-off items
Extraordinary dividends and the authority to purchase Tele2’s own shares will be recommended or sought when the anticipated total return to shareholders is deemed to be greater than the achievable returns from the deployment of the capital within the group's operating segments or the acquisition of assets within Tele2’s economic requirements.
Balance sheet
Tele2 has a target net debt to EBITDA ratio of between 1.25 and 1.75 times over the medium term
The company’s longer term financial leverage should be in line with the industry and the markets in which it operates and reflect the status of its operations, future strategic opportunities and contingent.

Balance Sheet Consideration / Financial Leverage
M&A / New growth opportunities
When available, invest in value accretive M&A or new business opportunities meeting Tele2’s strict financial hurdles
Shareholder remuneration
Enhance shareholder value by distributing recurring cash to shareholders
Cash generation
Cash / Buffer
Retain financial buffer

Prudent Balance Sheet Assessment
status of operations
(b) future strategic opportunities
(c) competitive landscape
(d) general macroeconomic status




We are content with our current financial and operational performance

Financial Profile
Upper limit
Lower limit

CurrentDebtProfile and FundingStrategy
Diversify Funding Sources
Rouble bond (first issue RUB 13bn)
We will revisit the market during the autumn
Swedish commercial paper / bond program
Euro bond
8.8 bn
0.9 bn
2.9 bn
2.4 bn
Gross debt position SEK 15.0 bn
Net debt amounts to SEK 12.9 bn
Target is to diversify sources and tenors

New Group Targets
Best Deal position
Targeting a long term mobile EBITDA margin on owninfrastructure of at least 35 percent
All operations should have the ambition to reach ROCE of at least 24 (earlier 20) percent
The capability to reach a Top 2 position, in terms of customer market share, in an individual country or region

The EBITDA Target Will Be Met
EBITDA Target
Neg.

Our Priorities
Cost control – Best in class
Benchmarking process
Continuous improvement program. This year’s savings target of 360 MSEK will be met
Shared service center
Quality focus
Increased quality focus to reduce cost and enhance the customer experience
Tele2 has improved its cost position and decreased the gap to the best in class

Conclusion
Improved financial performance
Raising the bar on group target

CMD2011 - Lars Nilsson - The best of both worlds in numbers

by Tele2 on Sep 15, 2011

Accessibility

Categories

Upload Details

Usage Rights

1 Embed 3

Statistics

CMD2011 - Lars Nilsson - The best of both worlds in numbers Presentation Transcript