Telia Company AB · OMXSTO:TELIA
Telia Company AB — TeliaSonera — ESG Presentation (August 2012)
38 slides from Telia Company AB's sustainability presentation, Aug 23, 2012
Slide 1: Corporate Responsibility Update
Corporate Responsibility Update August 23 2012
Slide 2: Agenda
Agenda Introduction Lars Nyberg, President & CEO Overview of Legal Framework Jan Henrik Ahrnell, General Counsel TeliaSonera in Eurasia Tero Kivisaari, President, Eurasia Corporate Responsibility Priorities Eija Pitkänen, Vice President CR
Slide 3: Overview of Legal Framework
Overview of Legal Framework Jan Henrik Ahrnell
Slide 4: Human Rights
Human Rights • UN Universal Declaration of Human Rights – Rights of Privacy – Freedom of Expression • Limitations in National Laws • Article 29 (2) ”In the exercise of his rights and freedoms, everyone shall be subject only to such limitations as are demanded by law solely for the purpose of securin
Slide 5: Treaties and Regulations
Treaties and Regulations • OECD Guidelines for multinational enterprises • UN’s “Guiding principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework • International Telecommunications Union • European Union • National legislation – Constitution –
Slide 6: Main risk areas related to privacy and freedom of expression in the telecom sector
Main risk areas related to privacy and freedom of expression in the telecom sector • Lawful interception – Crime investigations – National security • Close down of networks • Blocking of websites Confidential information • Transparency restrictions
Slide 7: Actions to limit risks of Human Rights violations
Actions to limit risks of Human Rights violations • Assess risks • Secure processes • Secure competence • Escalate decision-making • Take action if unlawful requests • Increase transparency • Industry dialogue – Guiding principles on Freedom of expression and Privacy
Slide 8: TeliaSonera in Eurasia
TeliaSonera in Eurasia Tero Kivisaari President, TeliaSonera Eurasia
Slide 9: What is TeliaSonera in Eurasia
What is TeliaSonera in Eurasia
Slide 10: Our geographical presence and competitive environment
MMO Our geographical presence and competitive environment Main competitors • Vimpelcom (Netherlands) • Tele2 (Sweden) • MTS (Russia) 10
Slide 11: Business area Eurasia
Business area Eurasia Country Market Since Brand Subscriptions position year June 2012 Azerbaijan 1 1996 Azercell 4,280,000 Georgia 1 1996 Geocell 2,045,000 Kazakhstan 1 1998 Kcell 11,691,000 Moldova 2 1999 Moldcell 1,136,000 Tajikistan 1 2007 Tcell 2,507,000 Uzbekistan 2 2007 Ucell 7,767,000 Nepal
Slide 12: Why do we operate in Eurasia, and what are the results?
Why do we operate in Eurasia, and what are the results?
Slide 13: Why Eurasia?
Why Eurasia? • Sizeable and growing populations • Continued economic growth • Low fixed line penetration • Low mobile penetration at market entrance • Utilization of our management experience and resources in each new country Creating value for both the countries and TeliaSonera
Slide 14: History of delivering profitable growth in our consolidated operations
History of delivering profitable growth in our consolidated operations Subscriptions, Subscriptions, millions millions Subscriptions, millions Net sales, SEK billion EBITDA, SEK billion 34.8 17.3 8.8 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 • Over 37
Slide 15: Continued growth in Eurasia
Continued growth in Eurasia Growth in net sales* 37.5 million subscriptions** (‘000) 37,528 Moldcell Tcell Geocell Azercell Ncell Ucell Kcell 2007 Q2/2012 * Consolidated operations, in local currencies and excluding acquisitions ** Consolidated operations 15
Slide 16: Total investments in Eurasia – USD 4.7 billion
Total investments* in Eurasia – USD 4.7 billion CAPEX Dividends 800 700 Oct 2008 Aug 2002 Acquires operation 600 Sonera acquires in Nepal majority in Fintur USD million Holdings 500 Dec 2002 400 Merger between Telia and Sonera 300 200 100 0 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 H1/12 Jul 2007 Acqu
Slide 17: Telecommunications, sustainability and TeliaSonera in Eurasia
Telecommunications, sustainability and Teliasonera in Eurasia
Slide 18: Telecommunication in emerging markets
Telecommunication in emerging markets • Telecommunication services drive growth and transition to a knowledge-based society • These services strongly encourage and promote economic, social and environmental benefits across industries, driving domestic and foreign investments • According to the World
Slide 19: Telecommunication in emerging markets, cont.
Telecommunication in emerging markets, cont. • Therefore, development of telecommunication and IT infrastructure and services is essential for the future prosperity of any country • Our investments in mobile networks use the most modern technologies from world class vendors • Providing high quality
Slide 20: Tangible socio-economic value
Tangible socio-economic value • Telecommunication industry contributes Country Penetration Penetration at entrance Q2/2012 considerably more to Eurasian countries’ Azerbaijan negligible 89% GDPs compared to Europe Georgia none 110% Kazakhstan none 144% • Our operators are among the largest Moldova n
Slide 21: Tangible socio-economic value, cont.
Tangible socio-economic value, cont. • Over 100,000 jobs created directly and indirectly in 7 countries, not counting Russia and Turkey – We are among the largest and most coveted employers in Eurasia, over 5000 employees • We have made affordable telecommunication services available to the people o
Slide 22: CR Risk analysis Eurasia
CR Risk analysis Eurasia Democracy level: Not free: Azerbaijan, Kazakhstan, Tajikistan, Uzbekistan Partly free: Georgia, Moldova, Nepal Nordic Countries Corruption Index: Democracy level: Medium risk: Georgia Free: Denmark, Finland, Norway, Sweden High risk: Azerbaijan, Kazakhstan, Moldova, Corrupti
Slide 23: Our business ethics
Our business ethics • Group Code of Ethics and Conduct • Corporate Governance – Management policies & practicies – Management rotation practices – Solid internal control environment – Transparent way of working • Fair selection of employees & suppliers • A lot of independent oversight over the opera
Slide 24: TeliaSonera in Tajikistan
TeliaSonera in Tajikistan
Slide 25: Telecom market in Tajikistan
Telecom market in Tajikistan • Population 7.6 million • One of the lowest per capita GDPs in Eurasia – USD 2,100 • Two thirds live in poverty • Telecom industry is a major contributor to GDP, as Tajikistan has scarce natural resources and little industry or importance as transportation hub, etc. • 9
Slide 26: Tcell in brief
Tcell in brief • 60% owned by TeliaSonera, 40% by Aga Khan Foundation (AKFED) • The first and the biggest mobile operator in Tajikistan – Established in 1998 – Acquired by TeliaSonera in July 2007 – Market leader with over 2.5 mn subscriptions (Q2/2012) – Covers nearly 100% of the population – Ensur
Slide 27: Tajikistan - sustained growth
Tajikistan - sustained growth Tajikistan – Net sales 800 100% Local currency million 80% 600 60% 400 40% 200 20% 0 0% H207 2008 2009 2010 2011 H1/12 Penetration Tajikistan – Subscriptions 3 100% Subscriptions, million 80% 2 60% 40% 1 20% Data users and traffic has 0 0% 2007 2008 2009 2010 2011 H1/12
Slide 28: Current situation - Update
Current situation - Update • Fighting erupted in Gorno-Badakshan region in late July – According to CNN, more than 40 people have been killed • Operators and ISP’s were officially requested to suspend services in the area • Subsequently blocking of certain web-sites was also officially requested • T
Slide 29: Aga Khan Foundation Update
Aga Khan Foundation Update • Aga Khan Foundation represents the Ismaili community – The Shia Imami Ismaili Muslims, generally known as the Ismailis, belong to the Shia branch of Islam. The Ismailis live in over 25 different countries, mainly in Central and South Asia, Africa and the Middle East, as
Slide 30: Aga Khan Foundation Update
Aga Khan Foundation Update • Foundation worked as trusted negotiator to get cease-fire in place • Also active in getting community leaders to initiate disarming of rebel groups • Humanitarian help to people affected • Pamir Energy (part of AKFED) to help restoring energy to region • Resident Rep (Am
Slide 31: Corporate Responsibility Priorities
Corporate Responsibility Priorities Eija Pitkänen
Slide 32: TeliaSonera's Corporate Responsibility impact
TeliaSonera’s Corporate Responsibility impact Markets and Customers • Customer privacy • Responsible marketing • Anti-corruption • Minimizing environmental impacts Supply chain Society • Anti-corruption Own operations • Freedom of expression • Human rights and Labor Laws • Human rights and Labor Law
Slide 33: CR Risk analysis Eurasia
CR Risk analysis Eurasia Democracy level: Not free: Azerbaijan, Kazakhstan, Tajikistan, Uzbekistan Partly free: Georgia, Moldova, Nepal Nordic Countries Corruption Index: Democracy level: Medium risk: Georgia Free: Denmark, Finland, Norway, Sweden High risk: Azerbaijan, Kazakhstan, Moldova, Corrupti
Slide 34: TS Group Mgmt Team priority CR plan 2012 agreed by the Board
TS Group Mgmt Team priority CR plan 2012 agreed by the Board • Establish CR strategy and priorities • Intensify dialogue with all external stakeholders • Introduce group-wide e-learning tool for Group Code of Ethics and Conduct • Strengthen the assessment process as to how our suppliers follow and r
Slide 35: TS Group Mgmt Team priority CR plan 2012 agreed by the Board, cont.
TS Group Mgmt Team priority CR plan 2012 agreed by the Board, cont. • Conduct a ’Human Rights Impact Assessment’ and define a mitigation plan. Engage external Human Rights experts in order to define best practice • Systematically implement the privacy policy based on continued risk assessment and pr
Slide 36: TS Group CR priority plan status
TS Group CR priority plan status CR Strategy and CR priority action plan 2012 KPIs action plan Code of Conduct Vendor e-learning Content production E-learning platform Roll-out selection Human Rights Partner and tool selection Tool development Fact finding and Implementation Impact mitigation plan C
Slide 37: TS Group CR priority plan status
TS Group CR priority plan status Privacy policy implementation Industry Joint guiding principles and permanent “home” established dialogue CR reporting Revised data collection system 2011 Report verification Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Slide 38: Additional activities
Additional activities • Renewed analysis of legal and license- based requirements on each market, with focus on interception and access to information – Analysis completed and process initiated to screen lawfulness related to requests beyond “ordinary course of business” at Group level • Request tha