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

    1. 1. Capital Markets Day 2011<br />The Best of Both Worlds – In the NumbersLars Nilsson<br />
    2. 2. In the Rear ViewMirror<br />In Riga (2007)<br /><ul><li>A more focused (mobile) company
    3. 3. Introduction of financial hurdles and operational goals
    4. 4. Increased transparency</li></ul>In Stockholm (2009)<br /><ul><li>House in order
    5. 5. ROCE and EBITDA
    6. 6. Debt
    7. 7. Financial targets
    8. 8. Priorities</li></li></ul><li>Improved Financial Results<br />
    9. 9. ROCE has Increased 12 Percentage Points Since Q3 2007<br />
    10. 10. BalanceSheet<br />
    11. 11. Net Debt and Dividend Targets<br /> Shareholder remuneration<br />Tele2 will seek to pay a progressive ordinary dividend of no less than 50 percent of net income excluding one-off items<br />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.<br /> Balance sheet<br />Tele2 has a target net debt to EBITDA ratio of between 1.25 and 1.75 times over the medium term<br />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.<br />
    12. 12. Balance Sheet Consideration / Financial Leverage<br />M&A / New growth opportunities<br />When available, invest in value accretive M&A or new business opportunities meeting Tele2’s strict financial hurdles<br />Shareholder remuneration<br />Enhance shareholder value by distributing recurring cash to shareholders<br />Cash generation<br />Cash / Buffer<br />Retain financial buffer<br />
    13. 13. Prudent Balance Sheet Assessment<br />status of operations<br />(b) future strategic opportunities<br />(c) competitive landscape<br />(d) general macroeconomic status<br /><br /><br /><br /><br />We are content with our current financial and operational performance<br />
    14. 14. Financial Profile<br />Upper limit<br />Lower limit<br />
    15. 15. CurrentDebtProfile and FundingStrategy<br />Diversify Funding Sources<br /><ul><li>Rouble bond (first issue RUB 13bn)
    16. 16. We will revisit the market during the autumn
    17. 17. Swedish commercial paper / bond program
    18. 18. Euro bond</li></ul>8.8 bn<br />0.9 bn<br />2.9 bn<br />2.4 bn<br />Gross debt position SEK 15.0 bn<br />Net debt amounts to SEK 12.9 bn<br />Target is to diversify sources and tenors<br />
    19. 19. New Group Targets<br /><ul><li>Best Deal position
    20. 20. Targeting a long term mobile EBITDA margin on owninfrastructure of at least 35 percent
    21. 21. All operations should have the ambition to reach ROCE of at least 24 (earlier 20) percent
    22. 22. The capability to reach a Top 2 position, in terms of customer market share, in an individual country or region</li></li></ul><li>The EBITDA Target Will Be Met<br />EBITDA Target<br />Neg.<br />
    23. 23. Our Priorities<br /><ul><li>Cost control – Best in class
    24. 24. Benchmarking process
    25. 25. Continuous improvement program. This year’s savings target of 360 MSEK will be met
    26. 26. Shared service center
    27. 27. Quality focus
    28. 28. Increased quality focus to reduce cost and enhance the customer experience</li></ul>Tele2 has improved its cost position and decreased the gap to the best in class<br />
    29. 29. Conclusion<br /><ul><li>Improved financial performance
    30. 30. Raising the bar on group target</li></li></ul><li>

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