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

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  • Prudent balance sheet assessment based on (a) status of operations, (b) future strategic opportunities, (c) competitive landscape and (d) general macroeconomic status with ourcurrentfinancial and operational performance.

Transcript

  • 1. Capital Markets Day 2011
    The Best of Both Worlds – In the NumbersLars Nilsson
  • 2. In the Rear ViewMirror
    In Riga (2007)
    • A more focused (mobile) company
    • 3. Introduction of financial hurdles and operational goals
    • 4. Increased transparency
    In Stockholm (2009)
  • Improved Financial Results
  • 9. ROCE has Increased 12 Percentage Points Since Q3 2007
  • 10. BalanceSheet
  • 11. 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.
  • 12. 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
  • 13. 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
  • 14. Financial Profile
    Upper limit
    Lower limit
  • 15. CurrentDebtProfile and FundingStrategy
    Diversify Funding Sources
    • Rouble bond (first issue RUB 13bn)
    • 16. We will revisit the market during the autumn
    • 17. Swedish commercial paper / bond program
    • 18. 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
  • 19. New Group Targets
    • Best Deal position
    • 20. Targeting a long term mobile EBITDA margin on owninfrastructure of at least 35 percent
    • 21. All operations should have the ambition to reach ROCE of at least 24 (earlier 20) percent
    • 22. 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.
  • 23. Our Priorities
    • Cost control – Best in class
    • 24. Benchmarking process
    • 25. Continuous improvement program. This year’s savings target of 360 MSEK will be met
    • 26. Shared service center
    • 27. Quality focus
    • 28. 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
  • 29. Conclusion
    • Improved financial performance
    • 30. Raising the bar on group target