Your SlideShare is downloading. ×
0
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
CMD2011 - Thomas Ekman - Market Area Nordic
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

CMD2011 - Thomas Ekman - Market Area Nordic

2,884

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,884
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
67
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • \
  • How many of you in here are customers of Tele2?

    Sweden is an amazing country, with a strong mobile growth at around 10% including handset sales and an underlying growth of mid single digit. In a mature market.

    Solid development of net sales in the quarter, mostly driven by smartphone sales and data services
  • Smartphone users have approx. 60% higher ASPU than feature phone users.

    Customers who have switched from feature to smartphone show good uplift, indicating that they already were high ASPU customers.
    Future potential in uplift when the rest of the feature phone stock migrate to smartphones, mostly driven by higher fixed fees for data packages.
  • TODAY
    5 % Low end (ZTE Blade and Huwei) 700 - 950 SEK
    30 % Mid range (Sony Ericsson, HTC Wildfire) 1500 – 2500 SEK
    65 % High End (Iphone and Galaxy S) 5500 – 6000 SEK
    Lineup: ZTE Blade, Huawei, SE Xperia mini, HTC Wildfire, Galaxy S2, iPhone 4 (i stigande prisordning)
  • Shift in th market where we see a decrease in the growth of 3G modems
  • MBB Privat: 46 000 kunder (3 Mkr/mån) på MBB Small – 11 000 utan trafik (700 tkr/mån).
    MIK: Ca 90 MKr/år recurring revenue – enligt P1 är denna stabil framöver.
    Low data package penetration with smartphones due to classification of ”smartphone”
    Better performance with a modem (dongel?)

    Handset data drives profitability on mobile data:
    Only replaces sporadic mobile broadband use.
    Has an attractive relationship between usage and pricing.

    Strong handset data potential.
    Today 65% of the postpaid customer stock does not have a data package or data included in price plan.
    80% of the prepaid customer base uses less than 1 Mb data per month.

    4G Mobile Broadband is a substitute to xDSL.
    4G router to be launched in Q3/Q4.
  • 1. Tele2 Sweden continued the roll-out of the combined 2G and 4G network in the joint venture Net4Mobility.

    2. During Q2, six major cities were added to the list of what will become the network with the best coverage in Sweden. We have now covered 40% of the population.

    3. (Furthermore, through Net4Mobility, Tele2 acquired a licence in the 800 MHz frequency allowing the company to build a 2G/4G network throughout Sweden in a cost efficient way. )

    4. Tele2 is today offering 4G mobile broadband with speed up to 80 Mbit/s - unlimited surf at at 399 SEK/month.
    We are seeing 4G handsets and tablets arriving during 2H 2011.
  • Continued roll-out of fiber to households in Sweden.

    Attractive service portfolio and Triple-play offerings.

    Existing traditional cable-tv-business is leveraged to support fiber roll-out.

    Around 1,5 billion SEK in Capex over the coming years
  • Positive for cash flow
    Looks negative for EBITDA %-margin

    Besparing kommande 5 år Capex+Opex tack vare nätutbyggnad i JVs:
    2012: Opex: 523’ Capex: 608’
    2013: Opex: 557’ Capex: 700’
    2014: Opex: 572’ Capex: 308’
    2015: Opex: 538’ Capex: 308’
    2016: Opex: 508’ Capex: 308’
    Total: Opex: 2697’ Capex: 2231’
  • We will breake the trend and recover EBITDA
    EBITDA 2011 full year AC+F2: 2893 MSEK
  • \

  • As you saw a couple of days ago we have control over 99% of the shares on Network Norway which makes us able to continue with the integration in full speed. We see that we can have a rationalisation of the market, a market repair


    One Call 44% of revenue. postpay consumer mobile brand with 5% market share i consumer mobile.
    LEBARA 30% of revenue, prepay consumer mobile brand targeting immigrants
    NwN Business 23% of revenue, postpay business mobile brand
    NwN Wholesale 3% of revenue
  • Important to remember short term we are still MVNO
    We will be the nr 3 player in the market with a current market share of around 15%. Long term the goal is offcourse to deliver on Tele2s overall targets on EBITDA and other KPIs. Hence we want to grow even further in Norway.


    20% market share kräver 197’ customer net intake  baserat på customer market share
    Tele2 Norway
    548 000 customers, mobile
    96 000 customers, fixed
    8,5 % market share (subscribers, mobile)
    Tele2 Norway + Network Norway
    1 074 000 customers, mobile
    96 000 customers, fixed
    16,9 % market share (subscribers, mobile)
  • Transcript

    • 1. Capital Markets Day 2011 Market Area Nordic Thomas Ekman
    • 2. Sep 20112 Capital Markets Day 2011 Market Area Overview Strong cash flow generation in Q2 2011: - EBITDA SEK 916 million - CAPEX SEK 123 million Represents 38% of total net sales Q2 2011: Sweden: 35% Norway: 3% Current Focus: Sweden: Building on mobile growth and 4G roll-out coupled with household/corporate fiber strategy Norway: Integrate Network Norway
    • 3. Sep 20113 Capital Markets Day 2011 Sweden
    • 4. Sep 20114 Capital Markets Day 2011 Operational Performance 0 100 200 300 400 500 600 700 800 900 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 200 400 600 800 1000 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 EBITDA Mobile EBITDA Fixed Telephony EBITDA Fixed Broadband EBITDA(%) Mobile EBITDA(%) Fixed Broadband EBITDA(%) Fixed Telephony 0 500 1000 1500 2000 2500 3000 3500 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Mobile Fixed Telephony Fixed Broadband 75% 12% 13% Mobile Fixed Telephony Fixed Broadband Total Revenue Q2 11 EBITDA-CAPEX SEK Million Revenue SEK Million EBITDA SEK Million
    • 5. Sep 20115 Capital Markets Day 2011 Potential Uplift in Smartphone Migration 0 50 100 150 200 250 300 0% 20% 40% 60% 80% 100% 1103 1104 1105 1106 1107 Smartphone Feature phone Smartphone Feature phone Smartphone Install Base (Postpaid) SEK Average ASPU
    • 6. Sep 20116 Capital Markets Day 2011 Smartphone Price Range 0% 20% 40% 60% 80% 100% Last year Today Low End Smartphones Entering the Market Low end Mid range High end
    • 7. Sep 20117 Capital Markets Day 2011 Shift in Mobile Broadband Market Handset Tablets Modem Router Fiber Individual Household
    • 8. Sep 20118 Capital Markets Day 2011 Handset Data Drives Profitability  Handset data drives profitability on mobile data  Strong handset data potential  4G Mobile Broadband is a substitute to xDSL 0% 20% 40% 60% 80% 100% 120% 140% 160% H1 2010 vs H1 2009 H2 2010 vs H2 2009 H1 2011 vs H1 2010 Mobile Data Revenue Increase Growth Handset data Mobile broadband data (3G)
    • 9. Sep 20119 Capital Markets Day 2011 The 4G Roll-Out Continues 99%* 4G coverage End of 20122011 *Percentage of the population In Q2 2011, 4G roll-out was completed in 14 cities  4G mobile broadband is already launched  4G handsets and home router coming late 2011
    • 10. Sep 201110 Capital Markets Day 2011 Increased Fiber Focus 298 SEK Core network Fiberfootprint Tele2 Sweden core network
    • 11. Sep 201111 Capital Markets Day 2011 Cost Benefits of Mobile Networks in JVs JV's Capex & Opex Tele2 share of JV's Capex & Opex Tele2 saving If Tele2 would build own network Capex & Opex 100% 40% 50% 90% 0% 10% 20% 30% 40% 50% EBITDA % EBITDA own infrastructure % 0 50 100 150 200 250 300 350 2012 2013 2014 EBIT Saving Mobile EBIT Saving Net4Mobility Mobile EBITDA (Sweden) JV CAPEX & OPEX Saving SEK Million
    • 12. Sep 201112 Capital Markets Day 2011 EBITDA Development Even more cost-efficient operations break the trend 0 500 1000 1500 2000 2500 3000 3500 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2006 2007 2008 2009 2010 2011-1H EBITDA% (left) EBITDA (right) SEK MillionTele2 Mobile EBITDA
    • 13. Sep 201113 Capital Markets Day 2011 Norway
    • 14. Sep 201114 Capital Markets Day 2011 Operational Performance 0 200 400 600 800 1000 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Mobile Fixed Telephony 0% 5% 10% 15% 20% 25% 0 10 20 30 40 50 60 70 80 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 EBITDA Mobile EBITDA Fixed Telephony EBITDA(%) Mobile EBITDA(%) Fixed Telephony 0 20 40 60 80 100 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 88% 12% Mobile Fixed Telephony SEK Million SEK Million SEK Million Total Revenue Q2 11 EBITDA-CAPEX Revenue EBITDA
    • 15. Sep 201115 Capital Markets Day 2011 Norwegian Market Consolidation Market backdrop  Aggressive price competition over the last couple of years pressuring revenue growth and margins  Fragmented market with two dominant operators  Declining MTR revenues  Increasing focus on scale, service offering and customer satisfaction Strategic rationale  Realize synergy and scale possibilities  Create a clear #3 mobile operator in Norway  Consolidation resulting in market-repair / rationalisation 50%50%
    • 16. Sep 201116 Capital Markets Day 2011 Market Shares 53.4 % 20.2 % 5.5 % 6.3 % 7.8 % 2.8 % 3.9 % Mobile Market Shares Based on Revenue Telenor NetCom (Telia Sonera) Chess (Telia Sonera) Network Norway (with OneCall and Lebara) Tele2 Ventelo Others Det norske markedet for elektroniske kommunikasjonstjenster 2010”, Post- og teletilsynet, 20 May 2011.  Nationwide coverage by 1H 2013  Long term market share of 25%  Long term alignment with Tele2 Group targets
    • 17. Sep 201117 Capital Markets Day 2011 Conclusion • Smartphones are driving revenues and margin • Increased fiber focus • Shift in %-EBITDA trend • Norwegian market consolidation
    • 18. Sep 201118 Capital Markets Day 2011

    ×