Telia Company AB · OMXSTO:TELIA

Telia Company AB — FY2000 Earnings Presentation

33 slides from Telia Company AB's earnings presentation, Feb 19, 2001

  1. Slide 1: Year-End Report 2000

    Year-End Report 2000 February 19, 2001

  2. Slide 2: High-priority areas

    High-priority areas Mobile Focus on core business and  Strong customer growth +1,7 million streamlining  New services launched Eniro listed  Higher margins Q4 Tess divistment - agreement Carrier in principle  Increased traffic volumes Companies sold  Second largest carrier’s network in Altitu

  3. Slide 3: Increased growth

    Increased growth Quarter 2000 Oct-Dec  Net sales The Group *) +4,5%+3,5% Mobile +40%+47% International Carrier +32%+46% Skanova +62%+30% Internet, Sweden +27%+35%  Strong mobile customer growth +60% *) comparable units Telia AB, IR, 006-2001 3

  4. Slide 4: Initiatives

    Initiatives Cost taken for new services and geographical expansion over the P/L Statement (MSEK) 6000 3602 Rest of world 4000 2247 Nordic countries 2000 1513 1532 1456 New services 534 0 1999 2000 Telia AB, IR, 006-2001 4

  5. Slide 5: Mobile

    Mobile Total proportional customers approx. 4,8 million Customers Nordic Finland countries 149 000 +116 000 4 553 000 +1 712 000 Sweden 3 257 000 +619 000 Russia North West GSM (12,7% + 9,5%) through Telecominvest 253 000 ** Norway +120 000 (100%) 850 000 +77 000 * Eesti Mobiilitelefon (24,5%) Custo

  6. Slide 6: Customer growth

    Customer growth (‘000) Sweden (‘000) Norway 3200 800 2700 650 3 257 000 850 000 2200 500 Q1 Q4 Q4 Q1 Q4 Q4 1998 1999 2000 1998 1999 2000 (‘000) Finland (‘000) Denmark 160 300 120 80 200 149 000 297 000 40 0 100 Q1 Q4 Q4 Q1 Q4 Q4 1998 1999 2000 1998 1999 2000 Telia AB, IR, 006-2001 6

  7. Slide 7: Mobile, ARPU

    Mobile, ARPU Churn 8% Churn 29% Sweden Norway SEK ARPU NOK 446 436 531 426 426 432 450 419 418 486 489 488 450 375 Postpaid 459 444 444 406 348 300 330 331 333 Total 314 325 337 329 300 306 304 303 320 305 303 310 289 142 152 147 121 119 123 136 124 127 150 108 109 106 119 119 150 101 96 Prepaid 0 Q

  8. Slide 8: Development of SMS (mobile originated)

    Development of SMS (mobile originated) No. of messages (millions) 300 185 millions 200 2000 2000 1999 Sweden 1999 Norway 100 0 J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec SMS share of revenues in December: Sweden 4%, Norway 13% Telia AB, IR, 006-2001 8

  9. Slide 9: UMTS

    UMTS Joint UMTS network with Tele2  Faster build out  Shared investments and usage of infrastructure  Continued competition on end customer market  Telia and Tele2 will act as MVNOs and buy capacity from the network company  The network company will use existing infrastructure as much as possib

  10. Slide 10: Speedy Tomato

    Speedy Tomato  Partnership signed with Olivetti  Service Areas Today Next release  E -mail account  Chat interface via portal, SMS, and WAP  Calendar and to any chat platform  Address book (buddy list)  Simple location based services  Intelligent POP configuration  Start of mobile commerce

  11. Slide 11: International Carrier

    International Carrier AC1 TAT 14 Existing or decided PoPs Planned PoPs Existing network Network under construction Framework decision for network build out Planned future network Infrastructure network expansion Dec 31, 2000 Total Fibre route kms (in service) 15,675 Duct route kms (Europe) 5,290 PoP

  12. Slide 12: International Carrier

    International Carrier Competitors and market position within each segment  Concert  ITXC Switched Voice  Uunet  WorldCom VoIP  PSI Net  RSL Com IP- services  Ebone  Worldaccess  Level 3  C&W Capacity  Tele Globe Wavelengths  KPNQwest  WorldCom  Carrier 1  Ebone  Global Crossing  KPN

  13. Slide 13: Broadband

    Broadband  Internet customer growth from 613 000 till 774 000 in Q4  General agreements ADSL/LAN give customer potential of 822 000  40 000 broadband customers  Broadband deliveries are speeding up  Broadband services launched in Q4 2000  Broadband portal launch in Q1 2001  193 000 broadband

  14. Slide 14: Fixed telephony

    Fixed telephony  Decreased price competition in the home market  Increased underlying EBITDA margin for established fixed services  Raised subscription rate for fixed telephony  Strong focus on on-line services Business Solutions Wholesale People Solutions  New services and  Growth in sales on

  15. Slide 15: IDC/World Times information society index

    IDC/World times information society index Sweden Norway Finland USA Denmark UK Switzerland Australia Singapore Holland J apan Canada Deutchland Austria Hongkong 0 1000 2000 3000 4000 5000 6000 7000 IDC/World times has ranked 55 countries on the basis of totally 23 parameters divided into 4 categorie

  16. Slide 16: New organization in Telia from April 1, 2001

    New organization in Telia from April 1, 2001 Five business areas and a common sales unit serving private and business customers in Sweden The new structure will:  strengthen Telia’s business orientation and facilitate the Group’s internationalization  provide a better platform for Telia to partici

  17. Slide 17: Telia's organization

    Telia’s organization CEO Telia Research Head office Telia Telia Telia International Networks Equity Carrier Telia Telia Mobile Internet Services Telia AB, IR, 006-2001 17

  18. Slide 18: Telia's organization, Sweden

    Telia’s organization, Sweden CEO Telia Research Head office Telia Telia Telia International Networks Equity Carrier Telia Telia Mobile Internet Services Telia Sweden Telia AB, IR, 006-2001 18

  19. Slide 19: Summary

    Summary  Strong growth in high-priority areas  Strong growth of mobile customers, increased margins in Q4  Second largest carrier’s network in Europe  Joint UMTS network with Tele2  Streamlining and focusing on core business continues Telia AB, IR, 006-2001 19

  20. Slide 20: Financial Overview

    www.telia.se Financial Overview

  21. Slide 21: Financial overview

    Financial overview Koncernen i sammandrag MSEK Q4 Q4 1999 2000 1999 2000 Net sales 14 887 14 540 52 121 54 064 Underlying EBITDA 3 343 3 790 14 059 13 087 - margin % 22,5 26,1 27,0 24,2 Operating income 2 505 7 930 5 946 12 006 Earnings per share (SEK) 0,62 2,47 1,48 3,50 Telia AB, IR, 006-2001 21

  22. Slide 22: Financial overview: Net sales

    Financial overview Net sales (MSEK) 15000 10000 Q1 Q2 5000 Q3 Q4 0 1998 1999 2000 Telia AB, IR, 006-2001 22

  23. Slide 23: Financial overview: External net sales

    Financial overview External net sales Change in % Total (MSEK) 54 064 52 121 Q4 00/99 00/99 50000 8656 12084 Mobile +47,0 +40,0 4328 40000 5966 Carrier & Networks 12403 +23,0 +38,0 30000 11241 Business Solutions -9,5 -9,4 20000 14 887 14 540 17931 16852 People Solutions 2455 1425 3619 -1,0 -6,0 1000

  24. Slide 24: Financial overview: Underlying EBITDA

    Financial overview Underlying EBITDA (MSEK) 4000 3000 2000 Q1 Q2 1000 Q3 Q4 0 1998 1999 2000 Telia AB, IR, 006-2001 24

  25. Slide 25: Financial overview: Underlying EBITDA

    Financial overview Underlying EBITDA Total (MSEK) 14 059 13 087 Change in % 3507 Q4 00/99 00/99 3353 12500 Mobile +1,5 -4,4 7872 Carrier & Networks +18,0 -2,4 7500 7679 Business Solutions +13,3 -1,8 3 343 3 970 1192 People Solutions 1173 1191 1694 1171 -27,0 -49,0 2500 1676 1978 855 337 383 2501 Ent

  26. Slide 26: Share of earnings in associated companies

    Financial overview Share of earnings in assoc. companies (MSEK) 1999 Q4 2000 2000 Netia Holdings (BS) -327 -47 -411 Baltikum (Mobil/ BS) 139 42 190 Unisource/ AUCS (BS) 1534 199 1445 Comsource/ Eircom (BS) 409 -133 -933 Telia Overseas (Enterprises) -1347 -632 -1719 Eniro (Enterprises) - 185 185 Othe

  27. Slide 27: Market value associated companies

    Financial overview Market value assoc. companies Telia's 31 Dec, 2000 31 Dec, 2000 (MSEK) share Booked value Market value in % Eniro (Sweden) 49,1 134 6 992 AS Eesti Telecom (Estonia) 24,5 494 1 648 Lietuvos Telekomas (Lithuania) 30,0 2 306 1 251 Netia Holdings (Poland) 48,1 2 205 2 448 Eircom plc (

  28. Slide 28: One-off charges

    Financial overview One-off charges Q4 Q4 (MSEK) 1999 2000 1999 2000 Personnel restructuring -327 - -722 - Common pension commitments etc. 761 740 189 854 Stock exchange listing -226 89 -226 -144 Year 2000 compliance -221 - -604 - Capital gains/ losses 2 6168 582 7856 Total -11 6997 -781 8566 Excl. C

  29. Slide 29: Operating income (EBIT)

    Financial overview Operating income (EBIT) (MSEK) 12000 10000 Q4 8000 6000 Full year 4000 2000 0 1997 1998 1999 2000 Telia AB, IR, 006-2001 29

  30. Slide 30: Investments

    Financial overview Investments (MSEK) 1999 2000 Mobile 1 318 25 814 *) Carrier & Networks 4 970 10 916 Business Solutions 3 066 3 063 People Solutions 251 1 052 Enterprises 2 540 7 048 Other, group-wide 0 -151 Total 12 145 47 742 *) of which NetCom ASA 22.758 MSEK Telia AB, IR, 006-2001 30

  31. Slide 31: Net interest-bearing liabilities, change

    Financial overview Net interest-bearing liabilities, change (MSEK) 60000 47 742 10 763 50000 13 087 40000 12 429 30000 1 470 2 925 20000 20 235 2 700 10000 7 527 0 Dec 31, Taxes Net Divestitures Under- New issue Dividend Other Dec 31, 1999 investments lying of shares 2000 EBITDA Telia AB, IR, 006-20

  32. Slide 32: Financial position

    Financial overview Financial position Dec 31, Dec 31, 1999 2000 Net interest-bearing liability (MSEK) 7 527 20 235 Balance sheet total (MSEK) 76 604 122 715 Debt/equity ratio (multiple) 0.24 0.37 Equity/assets ratio (%) 41.0 44.4 Telia AB, IR, 006-2001 32

  33. Slide 33: Summary

    Summary Strong balance sheet Increased focusing Increased profitability Growth in high- priority areas Telia AB, IR, 006-2001 33

Telia — FY2000 Earnings Presentation on 6ix