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Interim report January–September 2003 Anders Igel President and CEO

Interim report January–September 2003 Anders Igel President and CEO. Beating expectations. Integration completed – Common vision and values Synergies ahead of plan – Full financial impact still to come. Strongest nine-month result ever. Auria Fixed line telecom operator in Finland

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Interim report January–September 2003 Anders Igel President and CEO

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  1. Interim report January–September 2003 Anders Igel President and CEO

  2. Beating expectations • Integration completed – Common vision and values • Synergies ahead of plan – Full financial impact still to come

  3. Strongest nine-month result ever

  4. Auria • Fixed line telecom operator in Finland • Acquiring full ownership Omnitel • Mobile operator in Lithuania • Increasing ownership to 90% (55%) Strengthening the existing footprint

  5. Well-positioned in European telecom market EUR million Market value October 27, 2003 Revenue Jan–June 2003 Top 5 Net Debt June 30, 2003/EBITDA July 1, 2002–June 30, 2003 Cash flow (EBITDA-CAPEX) Jan–June 2003 Source: Citigroup, October 2003

  6. First European incumbent merger

  7. Strong customer growth with strong margins • Consolidated Companies • 11.6 million mobile customers • Annual growth 13% • Associated Companies • 23 million mobile customers • Annual growth 39% • Increase of Internet customers mostly compensated customer decline within fixed voice

  8. Sales growth in local currencies Q3 2003 Finland Mobile -6% (mobile excl. adj. -1%) Fixed 7% Norway Mobile 14% Sweden Mobile 3% Fixed -3% Estonia Mobile 11% Fixed 9% Latvia Mobile14% Fixed (Jan-Jun) -3% Denmark Mobile 47% Fixed -9% Lithuania Mobile 14% Fixed -17% Home market Sweden • Strong margin despite reduced sales in fixed communications Finland • Fierce competition following mobile number portability Norway • Continued positive trend Denmark • Strong earnings improvement The Baltic countries • Strong mobile growth in Lithuania • Strong mobile growth and good earnings in fixed operations in Latvia • Good performance in Estonia

  9. Annual customer growth Russia +132% Total 5,328,000 Eurasia +41% Total 2,123,000 Turkey1 +25% Total 17,200,000 TeliaSonera International Eurasia and Russia Q3 2003 • 2 million subscriber mark surpassed in Eurasia • Over 1 million new mobile customers in Russia International Carrier Q3 2003 • Continued earnings improvement Turkey Q3 2003 • Over 900,000 new customers 1) Turkcell figures are reported with a one-quarter lag

  10. Outlook 2003 • Net sales for the second half of 2003 are expected to be in line with the second half of 2002 • CAPEX is expected to be lower than 12% of sales for the full year • Operating income excluding non-recurring items for the second half-year of 2003 is expected to be in line with the level of the first half-year

  11. Simplicity makes everything possible Common direction basis for visionary leadership • Business concept • Carrying and packaging • Vision 2010 • Simplicity and Service – Drivers behind long-term growth • Transform TeliaSonera into a genuine service company • Wanted position 2005 • Benchmark with European service industry • Shared values • Add value • Make it happen • Show respect

  12. Focus going forward • Commercial actions – win back market shares • Continued synergy realization • Efficiency improvements • Strengthen existing geographical footprint • Realize the vision

  13. Kim Ignatius CFO

  14. Very strong earnings improvement • EBITDA marginexcl. non-recurring items • Group 39% (34) • Sweden 43% (42) • Operating income • Improvements across the operation • Lower CAPEX levels • Strong free cash flow SEK million CAPEX Free cash flow Operating income excl. non-recurring items EBITDA excl. non-recurring items Free cash flow1 1) Cash flow from operating activities less CAPEX

  15. Net sales change SEK million Revenue per market Decreased traffic volume in fixed 42% growth andeffect of consolidation International Carrier Eurasia Strong mobile growth, fixed decline Downsizing Baltic countries Denmark 1% increase before accruals despite price pressure Customer growth in mobile Eliminations Norway Strong customer growth Finland Sweden

  16. EBITDAexcl. non-recurring itemsimprovement SEK +1,026 million SEK million EBITDA per market International Carrier Successful restructuring Good earnings trends and effect of consolidation Eurasia Baltic countries Denmark Price pressure and accrualadjustment Norway Streamlining and synergies Reduced prices and increased marketing costs Strong positive trend in mobile, fixed and cable Finland Sweden

  17. Operating income excl. non-recurring items Higher EBITDA and income from associates improve operating income SEK million Significantly better profitability in Turkcell, negative IAS adjustments in comparative quarter

  18. CAPEX reflecting business needs SEK million CAPEX per market Sourcing synergies. Less demand on the network. Tight investment management International Carrier Holding Lower CAPEX in mobile network Eurasia Sweden No network build-outs, lower investments on present network and re-usage of dismantled equipment from closed parts. Baltic countries Lower investments both in fixed and mobile networks Sourcing synergies Investments in Finans Mainly lower CAPEX in mobile network Denmark Increase quality of network to meet customer demand Norway Finland

  19. OPEXexcl. non-recurring itemsJul–Sep 2002 toJul–Sep 2003 SEK million Increased interconnection costs Effect from consolidation Successful cost-cutting program Lower cost for consultants, personnel and interconnection Successful cost reduction program

  20. Strong cash flow – Strong financial position • Strong cash flow strengthening financial position by reducing net debt SEK billion Net debt Dec 31, 2002 Free cash flow Jan–Sep 2003 Dividend Other (incl. gain from divestitures) Net debt Sep 30, 2003

  21. Non-recurring items Q3 2003 SEK million Affecting income after financial items Q3 2003 Jan–Sep 2003 Income after financial items excl. non-rec. items 3,815 10,571 Within EBITDA Synergy implementation costs, Carrier -363 -363 Redundancies -50 -439 Other +69 +135 Within depreciation, amortization and write-downs -168 Write-downs relating to synergies in Carrier -29 - Impairments, Lietuvos Telekomas -110 - Within income from associated companies Capital gains/losses - +341 Write-downs (Infonet, MetroOne) -41 -1,249 Within financial net Capital gains/losses (Netia in Q2) -31 +552 Write-downs (financial investments) - -361 Income after financial items as reported 3,260 9,019

  22. Forward-looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.

  23. The Nordic and Baltic telecommunications leader

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