1. TeliaSonera presentation
Per-Erik Brundin
Director Performance management

4. Från fördelningspolitik till marknasekonomi

5. Med AXE kunde vi erbjuda nya tjänster.
AXE skulle inte bara komma att spela en viktig roll i moderniseringen av de svenska telekommunikationerna utan även bli en stor exportprodukt. Med AXE kunde vi erbjuda nya tjänster.
Foto: Telemuseum

6. Hotet

7. Lyftet

8. Klivet

10. Milestones looking 20 years back…..
1990
One country
employees in Sweden only
6 million customers
35 GSEK turnover
Mainly Fixed telephony
2010
20 countries
employees in 21 countries ( in Sweden)
148 million customers
109 GSEK turnover
36,666 GSEK EBITDA
Mobile
Broadband

12. Finns det någon röd tråd?
Finns det någon röd tråd?

13. GTS, Global Telesystems
Konkurrens
Enitel
Bred-bands-bolaget
Teracom
Sv. Kraftnät
Banverket
Stokab
TeliaSonera
Telenor
Telitel
NetNet
RSL Com
Worldcom/UUnet
Vodaphone
Mobilix
Banestyrelsen
Powercom
Köbenhamns
Belysningssellskap
Tele2
BaneTele
Oslo Sporveier
Netcom
Enator
Statnett
Netsource
9,5%
Nor Sea Com
Glocalnet
Ebone
LDI
IKEA/Catella
Framtids-fabriken
Global Crossing
Web A/S
Image Scandinavia
Rix Telecom
Göteborgs Energi
COLT
UPC
Chello
Vattenfall
Birka
Sydkraft
Supertel
Delta Three
Utfors
KPN/Qwest
EUNet
Carrier1
Thalamus
TeleCity
Arrowhead
World Online
IP-Only
Euro909.com
Facilicom
Tele8
Interoute
UPC Norge
Teleglobe
CyberCity
Global One
Telenordia
VR-Group
(Järnväg)
France
Telecom
Cooperation
Netcom/Tele2
GTS, Global Telesystems
Pangea
Worldcom
Sweden
Norway
Denmark
Finland
Bredbands-bolaget
Europolitan
Tele1
Finnet
Datatie
Elisa
Radiolinja
Telefon-
föreningar
46 st
Debitel
ElTele
ElTele Öst
Tele Danmark
SBC Comm.
Samarbete,
delägande 14%
Delägare
53,5%
50%
BIP
Spray
Kinnevik
Optimal
Comviq
Kabelvision
NetCom
Cable
Wireless BT
Sonofon
Bell
South
Kunskapskontoret
Orkla
Providence Equity
46,5%

14. Effektivisering – Mer för mindre!
Växa i antal kunder 
Högre intäkt
Investera för att
Klara kundbehov
Växa i antal kunder!
God marginal
Nu!
Större
Produktion
men
Lägre intäkt Lägre kostnad
Växa i volym! Pris press
kostnad för att klara
marginalen
Varför det är nödvändigt att jobba med kostnadsbesparingar?
Intäkterna går ned i takt med prispressen och färre fasttelefonikunder
Volymtillväxten kompenserar i viss mån intäktsnedgången
Kostnaderna måste minska i samma takt som intäkterna sjunker, trots volymökningen!
- vilket betyder att vi måste kunna producera mer till lägre kostnad –för att behålla marginalen - utmaningen är dubbel!
Vi måste samtidigt ta fram nya möjlighet att skapa nya tjänster och produkter för att skapa ökad ekonomisk tillväxt samt frigöra pengar för att investera i nya tillväxtområden
Oavsett framgång i tillväxtsatsningar som kommer att kosta ”på egna meriter” så måste vi minska kostnaderna för befintliga affärer och arbeta för att ta fram nya, attraktiva och lönsamma affärer.

15. Den underliggande utvecklingen
Broadband
Mobility
New Telecom World
Telecom Industry
Telephony
Internet
PC-LAN PC
desk top computing
Computer Industry
main frames
TV, Radio Electronic
publishing and entertainment
Media Industry

16. The Interconnected World
Teknikkonvergens IP
Broadband
mobility
Telecom Industry
Programs and applications Palm computers Internet
The Interconnected World
PC-LAN PC
desk top computing
Computer Industry
main frames
TV, media, electronic
publishing and entertainment
Media Industry

17. The Interconnected World
Marknadskonvergens
Broadband
mobility
Telecom Industry
Programs and applications Palm computers Internet
The Interconnected World
PC-LAN PC
desk top computing
Computer Industry
main frames
TV, media, electronic
publishing and entertainment
Media Industry

18. Kunderna gillar att vara mobila….18 18

19. RENODILING 1990 Gör allt i hela kedjan med egen personal Sälja &
Televerket
(SV)
Televerket (No)
Televerket (DK)
Televerket (Fi)
Växlar & Nät
Telefoner
Bygga nät och infra
Underhålla
Sälja &
Distribuera
1990

20. Integrera och väx ”cross border”
RENODILING
Nätkompo- nenter
Utbyggnad
Underhåll
Applikationer
Sales &
Distribution
Ericsson
Motorola
Nokia
Flex-
tronics
Etc.
Etc
TeliaSonera
Partners
Egen försäljning och distribution
Huawei
Telefoner mm
Samsung
Apple
Sony Ericsson
Eltel
Produkt / paketering / Marketing
Integrera och väx ”cross border”
i valda delar!

21. Telecom har gått från att vara Lokalt och nationellt
till att vara globalt

22. The rumor of our death is greatly exaggerated
“Only five years away, when telephony will be a free service…”
The Economist
September 2005

23. Access anywhere, anytime
Global IP traffic
… will nearly double every two years ( )
44 exabyte per month
Exabytes / month
7 exabyte per month
5 exabyte per month
Data from the Cisco Visual Networking Index Projects, June 2008.
Total IP traffic will increase at close to 50 % a year (CAGR) ( )
Video on demand, IPTV, peer-to-peer (P2P) video, and Internet video are forecasted to account for nearly 90 percent of all consumer IP traffic in 2012.
1 exabyte = 1 billion gigabytes
In This CONTEXT – THE CHANGE WILL CONTINUE and may be even be higher going forward……………
Sources: Cisco, 2008 23

24. Televerket på 80- talet 20 Telecommunication Areas Bangårdsgatan
— Swedish Telecom International AB
— Swedish Telecom Contracting AB
— Telefinans AB
— Tele Larm AB
— Teleindustrier AB
— SOS Alarmering AB (50%)
— Nerion A/S
— Telelogic AB
— Teleannons AB
Ellemtel (50%) Utvecklings AB
Teleinvest AB
NOTELSAT, NordiskaTelesatellit AB
Board
Secretarial Office
Corporate Planning Staff
Internal Audit
Director General
Televerket holds 100% of the share capital unless otherwise indicated
Administrative Department
EDP Department
Financial Department
Manage Services Dept
Basic Technology and
Testing Department
TELI
Radio Services
Marketing Dept
Bangårdsgatan
Network Dept
20 Telecommunication Areas
Equipment Dept
Country-wide Profit Centres

25. Idag heter teleområdena…….
Sverige, Norge, Danmark, Finland, Kazakstan, Moldavien. Nepal, Georgien etc

32. Hur ser det då ut idag?

33. Highest Employee Commitment Score

34. Our focus areas World class service company Quality in networks
Cost efficiency 34

35. Our footprint Almost 460 million population
Total number of subscriptions ~ 148 million
of which ~49 million in the majority-owned operations
of which ~99 in the associated companies

36. TeliaSonera Group Organization
President & CEO
Lars Nyberg
CFO
Per-Arne Blomquist
Legal Affairs
Jan Henrik Ahrnell HR
Karin Eliasson
Communications
Cecilia Edström
Group IT
Åke Södermark
Mobility Services
Håkan Dahlström
Broadband Services
Anders Gylder
Eurasia
Tero Kivisaari
Sales division Business Services
Sverker Hannervall

37. Markets and brands

38. TeliaSonera – organizational structure
Broadband services
Fixed telephony
TeliaSonera International Carrier
Broadband
Services
Mobile communication businesses in Nordic, Baltic and Spain
Mobility
TeliaSonera
Mobile communication businesses in high growth emerging markets
Eurasia 38

39. Mobility Services - Nordic and Baltic leadership
Country
Market position*
Brand
Subscriptions mobile
Sweden 1
Telia, Halebop
5,666,000
Finland 2
Sonera, TeleFinland
2,874,000
Norway
NetCom, Chess
1,658,000
Denmark 3
Telia, Call me, dlg
1,460,000
Estonia
EMT, Diil
766,000
Latvia
LMT, OKarte, Amigo
1,042,000
Lithuania
Omnitel, Ezys
1,991,000
Spain 4
Yoigo
1,506,000
Subscriptions, December 31, 2009
* TeliaSonera estimates

40. Broadband Services - Nordic and Baltic leadership
Country
Market position*
Brand
Subscriptions
Sweden 1
Telia
Broadband 1,125,000 Fixed 3,604,000 VOIP 158,000 IPTV 396,000
Finland 2
Broadband 458,000 Fixed 324,000 VOIP 1,000 Cable TV 175,000 IPTV 1,000
Norway
2 5
NextGenTel
Broadband 223,000 VOIP 48,000 IPTV 5,000
Denmark
Broadband 47,000 Fixed 205,000 VOIP 9,000 IPTV 5,000
Estonia
Elion
Broadband 182,000 Fixed 357,000 VOIP 8,000 Cable TV 3,000 IPTV 110,000
Lithuania
TEO
Broadband 313,000 Fixed 722,000 VOIP 4,000 IPTV 103,000
Latvia (49%)
Lattelecom
Broadband 194,000 Fixed 560,000 VOIP 5,000 IPTV 39,000
Subscriptions, December 31, 2009
* TeliaSonera estimates

41. Eurasia – a long term commitment
Country
Market position*
Brand
Subscriptions Mobile
Azerbaijan 1
Azercell
3,847,000
Georgia
Geocell
1,892,000
Kazakhstan
K’cell
7,165,000
Moldova 2
Moldcell
660,000
Tajikistan
Indigo, Somoncom
1,523,000
Uzbekistan
UCell
5,074,000
Nepal
Mero Mobile
2,202,000
Cambodia 4
Star-Cell
195,000
Russia (43.8%) 3
MegaFon
50,542,000
Turkey** (37.3%)
Turkcell
36,000,000
Ukraine**
Life
11,800,000
Belarus**
800,000
Subscriptions, December 31, 2009
* TeliaSonera estimates
** Subscriptions , September 30, Turkcell owns 54.2% in Ukraine and 80% in Belarus 41

42. TeliaSonera International Carrier
Global presence
More than than 43,000 km of fiber network, owned and operated
The network reaches more than 100 points of presence in 35 countries across Europe, North America and Asia
The network is proactively monitored 24/7/365 from Network Operation Centers
The only European Tier 1 carrier in the world
More than 85 percent of all European ISPs connect directly to our IP backbone.
TSIC provides quality, cross-border voice, IP and capacity services.
Our customers include operators, carriers, service providers, content providers and large-scale users, such as large international corporations.
Voice: We provide high-quality international voice termination to virtually every destination worldwide.
IP: We are the number one carrier of IP traffic in Europe, providing direct connections to our network for more than 80% of all European broadband service providers.
Capacity: We have sold more capacity in Europe than anyone else.
TSIC is wholly owned (100%) by the TeliaSonera Group. Because we are part of a financially strong group, customers can trust our ability to live up to our obligations both in the short and long term.
The major part of our network is based on our wholly owned infrastructure. We have a European network of 20,000 km as well as a fiber-based US network of 18,000 km covering the major cities from east to west.
Operating from our Nordic-Baltic home market, our expansion strategy includes new markets in Eastern Europe, Asia and South America.
TSIC’s net sales increased in 2005 by 5% to 4,139 million SEK (~446 million EUR).
EBITDA* (excl. non-recurring items) was 54 million SEK (~6 million EUR) in 2005.

43. IP backbone – Global
And a global look at our capacity backbone.

44. Back up

45. Q4 2009 in brief Net sales SEK 27,410 million (28,096)
Decrease -2.4%
Local organic -0.5%
FX effect -2.2%
Acquisitions 0.3%
EBITDA* SEK 9,039 million (8,272)
Increase +9.3%
EBITDA margin* 33.0% (29.4)
EPS SEK 1.09 (1.26)
Free Cash Flow SEK 4,660 million (4,918)
* Excluding non-recurring items

46. Operational highlights during 2009
Significantly improved cash flow* in Broadband Services
Strong revenue growth in Mobility Sweden**
Successfully defending margins in the Baltics***
* Cash flow, measured as EBITDA, excluding non-recurring items, minus CAPEX
** Net sales in Sweden rose 5.8 percent and EBITDA margin, excluding non-recurring items, improved to 38.8 percent (37.1)
*** EBITDA margin, excluding non-recurring items, in Mobility Services

47. An eventful year in Eurasia
Improved profitability from already high levels
Successfully defended or improved our market positions
Network build-out in Nepal and Uzbekistan
Agreement with Altimo for Turkcell and MegaFon

48. Full year 2009 – in line with the outlook
Actual 2009
Net sales*
In line with or slightly below the level of 2008
-0.3%
Addressable cost base*
Below the SEK 33.8 billion in 2008
-6.8%
EBITDA margin**
Exceed the margin level of 2008 (31.8%)
33.6%
CAPEX-to-sales ratio
In the range 13-14% (15.2%)
12.8%
Number of employees
Somewhat below 30,000
29,734 vs. 32,171 year-end 2008
* In local currencies and excluding acquisitions
** Excluding non-recurring items

49. Business area – Mobility Services
Net sales and EBITDA margin*
Net sales and EBITDA margin*
-2.4% LC
-1.6% LC
Cost savings improved profitability in Mobility Services in Q4 09
Revenue growth continued in Swedish Mobile, +6.4 percent y/y in Q4 09
Situation in the Baltic countries still challenging
* Excluding non-recurring items

50. Business area – Broadband Services
Net sales and EBITDA margin*
Net sales and EBITDA margin*
-3.2% LC
-3.1% LC
Cash flow almost tripled in Broadband Services in Q4 09
Net sales in Sweden and Finland impacted by lower internal sales
Significant improvement in EBITDA margin to 30.1 percent (23.0) in Q4 09
* Excluding non-recurring items

51. Business area – Eurasia
Net sales and EBITDA margin*
Net sales and EBITDA margin*
+7.3% LC
+5.0% LC
Organic growth improved sequentially and profitability was maintained
Kazakhstan improved in Q4 09, strong subscriber intake on new price plans
Reported net sales significantly impacted by currency movements
* Excluding non-recurring items

52. CAPEX Full year CAPEX-to-sales at 12.8 percent (15.2)
Changed approval routines for CAPEX during 2009

53. Solid financial position
* Excluding non-recurring items

54. Proposed dividend and capital structure
Revised dividend policy
The ordinary dividend shall be at least 50 percent (40) of Net income*
Proposed ordinary dividend SEK 2.25 per share (1.80)
Corresponding to 54 percent (43) of Net income*
Increase of 25 percent compared to 2008
Proposal for authorization
Repurchase a maximum of 10 percent of outstanding shares
Annual General Meeting will be held on April 7, 2010
* Net income attributable to owners of the parent company

55. Shareholder structure year-end, 2009
Holding
Swedish State
37.3%
Finnish State
13.7%
Swedbank Robur Funds
3.5%
Alecta
2.5%
SEB Funds
1.6%
AMF Insurance & Funds
Cevian Capital LP
Nordea Funds
1.4%
Skandia Life insurance
1.3%
SHB Funds
1.1%
AFA Insurance
Fourth Swedish National Pension Fund
1.0%
First Swedish National Pension Fund
Second Swedish National Pension Fund
0.6%
Third Swedish National Pension Fund
0.5%
Other shareholders
30.2%
635,799 shareholders

56. Strong financial key ratios
Dec 31, 2009
Dec 31, 2008
Return on equity*
15.2%
17.2%
Return on capital employed*
15.5%
17.3%
Equity/assets ratio
49.1%
50.5%
Net debt/equity ratio
34.9%
36.5%
* Rolling 12 months
One of the best rated Telecom Operators in Europe

57. TeliaSonera AB credit ratings (A3/A-)
TeliaSonera AB long-term ratings migration history 2002-to-today AA
AA- A+ A A-
Moody’s (A3/P-2)
Standard & Poor’s (A-/A-2)
January 8, 2003, lowered long-term debt rating to A2
November 1, 2006, outlook changed to Negative
October 30, 2007, lowered long- and short-term debt rating to A3 and P-2 respectively
February 12, 2009, debt ratings confirmed
Outlook: Stable
February 5, 2003, lowered long-term debt rating to A
October 28, 2005, lowered long-term debt rating to A- and short-term debt rating to A-2
November 13, 2009, debt ratings confirmed
Outlook: Stable
One of the best rated Telecom Operators in Europe

58. Changing competitive dynamics
Content distribution
Applications
Web Browser & search engine
Access
Telcos
Hardware
The business dynamics are characterized by that companies are trying to expand their business by competing in ”non traditional areas”. Many are trying to get new revenue streams by moving in to new roles in the value chain
Example: -Google are moving from WEB Search in to content such as books, maps ets on one hand but also in to the hardware area via HTC phones branded and programmed with Google content.
-Apple are moving in to selling Phones / I phone- They are earning money on selling Phones and other hard where but also selling content ( Music films etc) to their devices via “app store” this is their CORE business.
-TELCOS are moving in to content from the belief that there are more money to earn – RISK
-Content distribution ex TV cable operators are selling additional services such as Data com connections and Telephony
This creates a very dynamic and changing business landscape
There has been a lot of discussions and attempts from our side to develop and launch Applications and content- However we will see Access as our Core business and aggregating others content- BUT not create own. 58

59. From 1G to 4G in less than 30 years
100Mbit/s
Data IP
– 3G up to Mbit/s
WAP
Digital
– GSM/GPRS from 9.6 kbps
Voice
To put these developments into context:
10 years ago in the Nordic markets, we had a mobile telephony penetration of 50% and 34% internet penetration
Internet access – With a dial-up connection, you could get internet acess at a a speed of 56Kbit/second
Today we have mobile networks which can cope with Mbits per second and soon we will have 4G in some densely populated areas providing speeds of as much as 100 Mbit/second.
The core message is that the appetite for higher band with is endless– Look at your behaviors- To day you easily create a presentation (like this one) 2 MB end so on- Color pictures in your mobile / TV via IP and so on
In This CONTEXT – THE CHANGE WILL CONTINUE and may be even be higher going forward……………
Mobile access
Analogue
– NMT

60. What drives the change?

61. Det var bättre förr! - Ju förr desto bättre!

62. Se upp med ”hästhållare”

64. World Class Customer Service
EPSI Excellent
EPSI High
EPSI Average
Lexus
(US)
Amazon
(US)
Google
Disney
(US)
Apple
UPS
(US)
Tesco Mobile
(UK)
Toyota
(SE)
General Electric
(US)
Southwest Airl.
(US)
Ritz-Carlton
(SG)
Turkish Airlines
(TR)
Starbucks
(US)
BestBuy
(US)
Audi
(SE)
ICA
(SE)
Schenker
(SE)
Nordea
Samsung
(US)
McDonalds
TeliaSonera
67.6 (SE)
Folksam
(SE) LG
(SE)
H&M
(SE)

65. För 80 - talet Så här mycket får det kosta 
Så här mycket pengar har vi
Det här får det kosta - använda pengarna så effektivt som möjligt
Fördela intäkt klokt
Varför det är nödvändigt att jobba med kostnadsbesparingar?
Intäkterna går ned i takt med prispressen och färre fasttelefonikunder
Volymtillväxten kompenserar i viss mån intäktsnedgången
Kostnaderna måste minska i samma takt som intäkterna sjunker, trots volymökningen!
- vilket betyder att vi måste kunna producera mer till lägre kostnad –för att behålla marginalen - utmaningen är dubbel!
Vi måste samtidigt ta fram nya möjlighet att skapa nya tjänster och produkter för att skapa ökad ekonomisk tillväxt samt frigöra pengar för att investera i nya tillväxtområden
Oavsett framgång i tillväxtsatsningar som kommer att kosta ”på egna meriter” så måste vi minska kostnaderna för befintliga affärer och arbeta för att ta fram nya, attraktiva och lönsamma affärer.