Telia Company AB · OMXSTO:TELIA

Telia Company AB — Q1 2001 Earnings Presentation

33 slides from Telia Company AB's earnings presentation, May 10, 2001

  1. Slide 1: Interim Report January - March 2001

    Stockholm, 10 May 2001 Interim Report January - March 2001 2001-05-09 23:06

  2. Slide 2: Marianne Nivert, President and CEO

    Marianne Nivert President and CEO Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 2

  3. Slide 3: Highlights

    Highlights  Net sales increased by 5.7% to MSEK 13,592  Underlying EBITDA increased by 2.7% to MSEK 3,348  Strong margin improvement in the Swedish mobile operations  Svenska UMTS-nät AB established together with Tele 2  Broadband portal launched  Increased rate of broadband delivery  Sale of

  4. Slide 4: Trends

    Trends  Higher prices for subscriptions and broadband  Continued strong demand for broadband  Shakeout in the carrier sector  Reduced pressure on prices in fixed services  Weaker growth in Swedish mobile, sharper focus on new services and streamlining  Continued refining efforts within Telia T

  5. Slide 5: Continued refining

    Continued refining Sale of 51% in:  Swedia Networks AB  Telia Prosoft AB  Respons AB  Validation AB  Telia Swedtel AB 13  Telia Dokumentation AB  Multicom Security AB June  Smålands-  TA Teleadress  IN good company AB börsen Data AB Information AB  Starman Kaabel-  Telia Academy AB  Com

  6. Slide 6: Growth

    Growth Group +5.7% Mobile +46% International Carrier +9.6% Internet Services +24.6% Broadband +62% (cf. Q4 2000) Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 6

  7. Slide 7: Mobile

    Mobile Sales trend in the Nordic countries, total 46% Norway +27% • GPRS launched  Healthy improvement Finland +191% - NetCom MobiMail in profitability, underlying EBITDA +34%  Pan-Nordic service Sweden +7% • GPRS Pilot test launched in May 2001 - Telia Mobile Online Denmark +85% • UMTS agreement

  8. Slide 8: Mobile

    Mobile Total proportional Customer base, customer base 4.9 million Nordic countries Finland 4,598,000 154,000 Russia +5,000 +45,000 North West GSM (12.7% + 11.3%) through Telecominvest 292,000 ** Sweden +39,000 3,259,000 2) +2,000 GSM customer growth Customer base, +33,000 Baltic region/Russia Norwa

  9. Slide 9: Mobile

    Mobile ('000) ('000) 3400 Sweden, 3,259,000 900 Norway, 854,000 800 3000 700 2600 600 2200 500 0 Q1 Q1 Q1 0 Q1 Q1 Q1 1999 2000 2001 1999 2000 2001 ('000) ('000) Denmark, 331,000 Finland, 154,000 400 160 120 300 80 200 40 100 0 0 Q1 Q1 Q1 Q1 Q1 Q1 1999 2000 2001 1999 2000 2001 Telia, AB, IR, 008-2001

  10. Slide 10: Mobile

    Mobile Without the reduction of Churn 10% interconnect fees from ARPU & MoU Sweden SEK 1.89 to 1.18, ARPU Q1 2001 ARPU ( SEK ) would have been SEK 298 446 436 432 419 426 426 418 394 400 375 330 348 331 333 314 306 304 303 Postpaid 300 273 Total 200 121 119 108 109 123 101 96 106 101 100 Prepaid 0 Q

  11. Slide 11: Mobile

    Mobile Churn 31% ARPU & MoU Norway ARPU ( NOK ) 600 531 486 489 488 491 500 406 444 444 459 Postpaid 400 325 337 329 320 305 303 310 289 298 300 Total 200 136 142 152 147 119 124 127 119 99 100 Prepaid 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1999 1999 1999 1999 2000 2000 2000 2000 2001 MoU ( minutes) 250 223 2

  12. Slide 12: Mobile

    Mobile Share of sales, Q1 2001 SMS trends Sweden 4%, Norway 14% Norway 2001 400 Norway 2000 Norway 1999 200 Sweden 2001 Sweden 2000 0 Sweden 1999 Jan Feb Mar April May June July Aug Sep Oct Nov Dec Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 12

  13. Slide 13: Mobile

    Mobile www.teliamobile.se Right Way Near You Closest Resource Bootfighters a virtual paintball Navigation service Effective planning for Position-based with maps business critical resources interactive games House Close to You Micro-payment House Prices Close to You for GPRS SALE Sweden: Real estate

  14. Slide 14: International Carrier

    International Carrier Market trends  Clear signs of impending shakeout with subsequent consolidation  The turbulence gives Telia opportunities to take customers  Lower demand on fiber and ducts  Increased demand on leased capacity and wavelength – stiffer competition and more pressure on prices

  15. Slide 15: International Carrier

    International Carrier Important events  Powerful growth in the IP business +210%  Growth in the IP capacity business +40%  Services for virtual private networks, IP-VPN, and for colocation of IP servers (local services) launched  Agreement with Ericsson signed for delivery of a global internal n

  16. Slide 16: International Carrier

    International Carrier Viking Network – Telia’s global IP platform Infrastructure network expansion 31/12 2000 Total fiber network km (in use) 15,675 Ducts km (Europe) 5,290 PoPs (total) 52 Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 16

  17. Slide 17: International Carrier

    International Carrier Signed contracts (MSEK) Storm Fibre 1,275 GTS Fibre 432 Tele 1 Europe Fibre 293 LD Com Ducts 47 Other (BT, France Telecom etc.) Fibre/Ducts 1,571 Other (Sprint, Telenor, KPNQwest) 525 Total IRU 4,143 360Networks Fibre SWAP 998 Global Crossing Ducts SWAP 615 Williams Fibre SWAP

  18. Slide 18: International Carrier

    International Carrier External sales and price development MSEK Q1 Q1 Change 2001 2000 in % Voice 506 576 -12 Leased IP capacity 109 78 +40 IP traffic 65 21 +210 Infrastructure 38 0 Other 22 0 Total 740 675 +10 Investments 1,147 488 Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 18

  19. Slide 19: Networks

    Networks  Two brands — Telia for retail customers — Skanova for network wholesale customers  Migration from fixed telephony to broadband and mobile  External network wholesale market (Skanova) provides growth and compensates for losses on the retail market  Streamlining programs compensate for t

  20. Slide 20: Internet Services

    Internet Services Narrowband Internet subscriptions Paying broadband customers increased by 11% from 641 000 (‘000) Q1 2000 to 711 000 Q1 2001 70 60 50 40 30 20 10 0 1999 Q1 2000 Q2 2000 Q3 2000 Q4 2000 Q1 2001 ADSL/ LAN Sverige Danmark High speed Internet via cable Telia, AB, IR, 008-2001 eng 2001-

  21. Slide 21: Broadband

    Broadband www.startsidan.telia.se Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 21

  22. Slide 22: www.telia.se

    www.telia.se 2001-05-09 23:06

  23. Slide 23: Bo Jacobsson, CFO and Head of Corporate Financial Control

    Bo Jacobsson CFO and Head of Corporate Financial Control Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 23

  24. Slide 24: Financial overview

    Financial overview Key figures for the Group MSEK Q1 2001 Q1 2000 2000 Net sales 13,592 12,857 54,064 Underlying EBITDA 3,348 3,260 13,087 - margin % 24.6 25.4 24.2 Operating income 811 3,382 12,006 Earnings per share (SEK) 0.10 0.84 3.50 Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 24

  25. Slide 25: Financial overview

    Financial overview Consolidated net sales (MSEK) 15,000 10,000 Q1 Q2 5,000 Q3 Q4 0 1999 2000 2001 Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 25

  26. Slide 26: Financial overview

    Financial overview External net sales, BA Change in % (MSEK) Mobile +45.7 12 000 3,614 2,481 740 675 International Carrier +9.6 9 000 Networks -2.0 6 000 7,626 7,475 Internet Services +24.6 3 000 532 427 1,180 1,590 Equity -25.8 0 Q1 2001 Q1 2000 Total for the Group +5.7 Telia, AB, IR, 008-2001 eng

  27. Slide 27: Financial overview

    Financial overview Underlying EBITDA, BA (MSEK) Change in % 5 000 Mobile +34.2 1,134 845 International Carrier - 3 000 Networks -3.1 2,837 2,928 Internet Services - 1 000 Equity +61.9 204 126 - 238 - 353 Group-wide - - 235 - 172 - 354 - 114 -1 000 Total for the Group +2.7 Q1 2001 Q1 2000 Telia, AB,

  28. Slide 28: Financial overview

    Financial overview Share of earnings in associated companies MSEK Q1 2001 Q1 2000 2000 Netia Holdings (Networks) -143 -34 -411 Baltic region (Mobile/Networks) 23 15 190 Unisource/AUCS (Networks) -49 1,004 1,445 Comsource/Eircom (Networks) -204 -81 -933 Telia Overseas (Equity) -2 -257 -1,719 Eniro (E

  29. Slide 29: Financial overview

    Financial overview Market value, associated companies MSEK Participation Book Market Per 31 March 2001 in % value value Eniro AB (Sweden) 49.1 490 7,802 Scandinavia Online AB (Sweden) 24.6 313 201 AS Eesti Telekom (Estonia) 24.5 540 1,341 AB Lietuvos Telekomas (Lithuania) 30.0 2,502 1,211 Netia Hold

  30. Slide 30: Financial overview

    Financial overview Investments MSEK Q1 2001 Q1 2000 2000 Mobile 509 1,001 26,017 International Carrier 1,147 488 6,634 Networks 1,436 749 7,421 Internet Services 90 50 626 Equity 512 2,015 7,185 Group-wide -35 341 -141 Total for the Group 3,659 4,644 47,742 Telia, AB, IR, 008-2001 eng 2001-05-09 23:

  31. Slide 31: Financial overview

    Financial overview Financial position 31 March 31 Dec 2001 2000 Net interest-bearing liability (MSEK) 24,425 20,235 Balance sheet total (MSEK) 127,062 122,715 Debt/equity ratio (multiple) 0.42 0.37 Equity/assets ratio (%) 45.3 44.4 Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 31

  32. Slide 32: Financial overview

    Financial overview Change in net borrowings 3,663 (MSEK) 3,967 617 24,425 25000 3,348 20,235 526 20000 15000 10000 5000 0 1 January Tax Net invest- Divesti- Under- Other 31 March 2001 ments tures lying 2001 EBITDA Telia, AB, IR, 008-2001 eng 2001-05-09 23:06 /Kh 32

  33. Slide 33: Financial overview

    Financial overview Telia stock 150 140 130 120 110 100 90 80 70 60 05 mar 12 mar 19 mar 26 mar 09 a pr 23 apr 02 apr 16 apr 30 apr 07 maj 19 feb 01 jan 08 jan 15 jan 22 jan 29 jan 05 feb 12 feb 26 feb Telia TeleDanmark BT DT Telecom I talia KPN Telenor Affärsvärldens General I ndex Telia, AB, IR, 00

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