Presentation on theme: "1 TeliaSonera presentation Per-Erik Brundin Director Performance management."— Presentation transcript:
1 TeliaSonera presentation Per-Erik Brundin Director Performance management
10 Milestones looking 20 years back… One country employees in Sweden only 6 million customers 35 GSEK turnover Mainly Fixed telephony countries employees in 21 countries ( in Sweden) 148 million customers 109 GSEK turnover –36,666 GSEK EBITDA Mobile Broadband
Finns det någon röd tråd?
14 Effektivisering – Mer för mindre! Växa i antal kunder Högre intäkt Investera för att Klara kundbehov Större Produktion men Lägre intäkt Lägre kostnad Nu! Växa i antal kunder! God marginal Växa i volym! Pris press kostnad för att klara marginalen
15 Den underliggande utvecklingen Telecom Industry Broadband Mobility main frames desk top computing PC PC-LAN Internet TV, Radio Electronic publishing and entertainment Computer Industry Media Industry New Telecom World Telephony
16 Teknikkonvergens Telecom Industry Broadband mobility main frames desk top computing PC PC-LAN Programs and applications Palm computers Internet TV, media, electronic publishing and entertainment Computer Industry Media Industry The Interconnected World IP
17 Marknadskonvergens Telecom Industry Broadband mobility main frames desk top computing PC PC-LAN Programs and applications Palm computers Internet TV, media, electronic publishing and entertainment Computer Industry Media Industry The Interconnected World
18 Kunderna gillar att vara mobila….
19 Televerket (SV) Televerket (No) Televerket (DK) Televerket (Fi) Växlar & Nät Telefoner Bygga nät och infra Underhålla Sälja & Distribuera 1990RENODILING Gör allt i hela kedjan med egen personal
20 RENODILING Nätkompo- nenter Utbyggnad Underhåll Applikationer Sales & Distribution Ericsson Motorola Nokia Ericsson Flex- tronics Etc. Ericsson Etc TeliaSonera Partners Egen försäljning och distribution Partners Huawei Telefoner mm Nokia Samsung Motorola Apple Etc. Sony Ericsson Eltel Etc Nokia Produkt / paketering / Marketing TeliaSonera Integrera och väx ”cross border” i valda delar!
21 Telecom har gått från att vara Lokalt och nationellt till att vara globalt
22 “Only five years away, when telephony will be a free service…” The Economist September 2005 The rumor of our death is greatly exaggerated
23 Access anywhere, anytime Sources: Cisco, 2008 Global IP traffic … will nearly double every two years ( ) Exabytes / month 5 exabyte per month 7 exabyte per month 44 exabyte per month
24 Televerket på 80- talet Board Director General Secretarial Office Corporate Planning Staff Internal Audit Ellemtel (50%) Utvecklings AB Teleinvest AB NOTELSAT, NordiskaTelesatellit AB — 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 Administrative Department Financial Department Basic Technology and Testing Department EDP Department Manage Services Dept Marketing Dept Network Dept Equipment Dept 20 Telecommunication Areas TELI Radio Services Televerket holds 100% of the share capital unless otherwise indicated Country-wide Profit Centres
25 Idag heter teleområdena……. Sverige, Norge, Danmark, Finland, Kazakstan, Moldavien. Nepal, Georgien etc
34 Our focus areas World class service company Quality in networks Cost efficiency
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 Mobility Services Håkan Dahlström Legal Affairs Jan Henrik Ahrnell Communications Cecilia Edström CFO Per-Arne Blomquist HR Karin Eliasson Broadband Services Anders Gylder Sales division Business Services Sverker Hannervall Eurasia Tero Kivisaari Group IT Åke Södermark
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 Services TeliaSonera Mobile communication businesses in high growth emerging markets Eurasia
41 Eurasia – a long term commitment CountryMarket position* BrandSubscriptions Mobile Azerbaijan1Azercell3,847,000 Georgia1Geocell1,892,000 Kazakhstan1K’cell7,165,000 Moldova2Moldcell660,000 Tajikistan1Indigo, Somoncom1,523,000 Uzbekistan2UCell5,074,000 Nepal2Mero Mobile2,202,000 Cambodia4Star-Cell195,000 Russia (43.8%) 3MegaFon50,542,000 Turkey** (37.3%) 1Turkcell36,000,000 Ukraine**3Life11,800,000 Belarus**3Life800,000 ** Subscriptions, September 30, Turkcell owns 54.2% in Ukraine and 80% in Belarus * TeliaSonera estimates Subscriptions, December 31, 2009
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.
43 IP backbone – Global
44 Back up
45 Q 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 Strong revenue growth in Mobility Sweden** Successfully defending margins in the Baltics*** Significantly improved cash flow* in Broadband Services * 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 * In local currencies and excluding acquisitions ** Excluding non-recurring items Outlook 2009Actual 2009 Net sales * In line with or slightly below the level of % Addressable cost base * Below the SEK 33.8 billion in % 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
49 Business area – Mobility Services 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 Net sales and EBITDA margin* -2.4% LC Net sales and EBITDA margin* -1.6% LC
50 Business area – Broadband Services 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 Net sales and EBITDA margin* -3.2% LC * Excluding non-recurring items Net sales and EBITDA margin* -3.1% LC
51 Business area – Eurasia Net sales and EBITDA margin* +7.3% LC * Excluding non-recurring items 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 Net sales and EBITDA margin* +5.0% LC
52 CAPEX Full year CAPEX-to-sales at 12.8 percent (15.2) Changed approval routines for CAPEX during 2009 CAPEX 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 ShareholderHolding Swedish State37.3% Finnish State13.7% Swedbank Robur Funds3.5% Alecta2.5% SEB Funds1.6% AMF Insurance & Funds1.6% Cevian Capital LP1.6% Nordea Funds1.4% Skandia Life insurance1.3% SHB Funds1.1% AFA Insurance1.1% Fourth Swedish National Pension Fund1.0% First Swedish National Pension Fund1.0% Second Swedish National Pension Fund0.6% Third Swedish National Pension Fund0.5% Other shareholders30.2% 635,799 shareholders
56 Strong financial key ratios Dec 31, 2009Dec 31, 2008 Return on equity*15.2%17.2% Return on capital employed*15.5%17.3% Equity/assets ratio49.1%50.5% Net debt/equity ratio34.9%36.5% * Rolling 12 months One of the best rated Telecom Operators in Europe
57 TeliaSonera AB credit ratings (A3/A-) 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 Moody’s (A3/P-2) Standard & Poor’s (A-/A-2) AA AA- A+ A A- TeliaSonera AB long-term ratings migration history 2002-to-today One of the best rated Telecom Operators in Europe
58 Changing competitive dynamics Applications Web Browser & search engine Content distribution Hardware Access Telcos
59 IP – 3G up to 14.4 Mbit/s From 1G to 4G in less than 30 years Voice WAP Data Analogue – NMT Digital – GSM/GPRS from 9.6 kbps 4G 100Mbit/s Mobile access
60 What drives the change?
61 Det var bättre förr! - Ju förr desto bättre!