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John Geary Senior Consultant Group Communications. TeliaSonera - in brief. More than 453 million population Total number of subscriptions 128 million - of which ~40 million in the majority-owned operations - and ~88 million in the associated companies
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TeliaSonera- in brief • More than 453 million population • Total number of subscriptions 128 million- of which ~40 million in the majority-owned operations- and ~88 million in the associated companies • Approx. 32,000 employees • Largest shareholders – Swedish state (37.3%) and Finnish state (13.7%)
Record earnings • Net sales SEK 103,585 million (96,344) • Increase +7.5% • Organic growth +3.9% (in local currency) • FX effect +2.1% • Acquisitions +1.5% • EBITDA* SEK 32,954 million (31,021) • EBITDA margin* 31.8% (32.2) • Net Income SEK 19,011 million (17,674) • EPS SEK 4.23 (3.94) • CAPEX SEK 15,795 million (13,531) Full year 2008 * Excl. non-recurringitems
TeliaSonera Group Organisation President & CEO Lars Nyberg CFO Per-Arne Blomquist Legal Affairs Jan Henrik Ahrnell HR Karin Eliasson Communications Cecilia Edström MobilityServices Kenneth Karlberg BroadbandServices Håkan Dahlström Eurasia Tero Kivisaari Business Services (B2B Sales) Sverker Hannervall
Norway (NetCom, Chess) Mobile subscriptions 1,581,000 Finland (Sonera, TeleFinland) Mobile subscriptions 2,676,000 Estonia (EMT, Diil) Mobile subscriptions 778,000 Sweden (Telia, Halebop) Mobile subscriptions 5,334,000 Latvia (LMT, OKarte, Amigo) Mobile subscriptions 1,056,000 Denmark (Telia, Call me, dlg) Mobile subscriptions 1,493,000 Spain (Yoigo) Mobile subscriptions 970,000 Lithuania (Omnitel, Ezys) Mobile subscriptions 2,012,000 Mobility Services - Nordic and Baltic leadership #1 #1 #2 #1 #1 #3 #1 # Market position (TeliaSonera estimates) Start-up Subscriptions, December 31, 2008
Broadband Services - Nordic and Baltic leadership Finland (Sonera) Broadband subscriptions 478,000 Fixed subscriptions 420,000 Cable TV subscriptions 176,000 Norway (NextGenTel) Broadband subscriptions 176,000IPTV subscriptions 10,000 Estonia (Elion) Broadband subscriptions 176,000 Fixed subscriptions 391,000 Cable TV subscriptions 4,000 IPTV subscriptions 75,000 Sweden (Telia) Broadband subscriptions 1,122,000 Fixed subscriptions 4,000,000 IPTV subscriptions 324,000 Among three major #1 #2 Latvia (Lattelecom, ownership 49%) Broadband subscriptions 180,000 Fixed subscriptions 597,000 Denmark (Telia) Broadband subscriptions 184,000 Fixed subscriptions 226,000 Cable TV subscriptions 210,000IPTV subscriptions 1,000 #1 #1 #2 Lithuania (TEO) Broadband subscriptions 298,000 Fixed subscriptions 769,000 IPTV subscriptions 67,000 #1 # = Market position # Market position (TeliaSonera estimates) Subscriptions, December 31, 2008
Azerbaijan (Azercell) Mobile subscriptions 3,471,000 Georgia (Geocell) Mobile subscriptions 1,582,000 Kazakhstan (K’cell) Mobile subscriptions 7,083,000 Moldova (Moldcell) Mobile subscriptions 550,000 Tajikistan (Indigo & Somoncom) Mobile subscriptions 1,154,000 Uzbekistan (UCell) Mobile subscriptions 2,683,000 Nepal (Mero Mobile) Mobile subscriptions 1,749,000 Cambodia (Star-Cell) Mobile subscriptions 144,000 Eurasian operations #3 #3 #1 #3 #2 #1 #1 #3 #1 #1 #1 #2 #4 Russia (MegaFon, ownership 43.8%) Mobile subscriptions 43,558,000 Turkey (Turkcell, ownership 37.3%) Mobile subscription 36,300,000 # Market position (TeliaSonera estimates) Ukraine (Life:-),TKC ownership 54.2%) Mobile subscriptions 10,700,000 Afghanistan (Roshan) Ownership 12.5%
Av.Growth = 30% / Annum Astelit 9% 8% 7% Turkcell 41% 41% 43% 48% MegaFon 58% 39% 40% 40% 38% 69% 78% 33% Fintur 11% 11% 22% 10% 14% 10% 8% 9% 9% Subscriber Growth
International expansion criteria • East of Sweden ( not north, south or west) • Not huge markets ( such as China and India) • Small to medium-sized countries • Market characteristics: • Young and growing populations • Low mobile penetration / High economic growth • Cultural fit • Strong local partners • Good business case and “right” purchase price • Act as a local player • Strong corporate governance and risk management
TeliaSonera enters new high-growth emerging markets • Spice Nepal in Nepal • Applifone in Cambodia
Ownership structure Control through 51% share in TeliaSonera Asia Holding B.V. - creates an attractive platform for further expansion • A strong local partner – intangible benefits from partnering with Visor Group • Allows consolidation TeliaSonera Visor Group 51% 49% TeliaSonera Asia Holding B.V. 100% 80% Spice Nepal Nepal Applifone Cambodia
80 UTL (CDMA) 5 NTC (GSM+CDMA) 50 54 41 Spice Nepal(GSM) Mobile markets in Nepal and Cambodia Cambodia Nepal Mobile market consists of 2 GSM and 2 CDMAoperators Population: 28.4 million Mobile market consists of 5 GSM operators Population: 14.6 million Market share (%) Market share (%) Applifone 3 Cadcomms 1 TMIC 15 CamShin 18 Mobitel 63 As of Aug’08 As of Aug’08
Wholesale- a hub for all IP based communications • Largest IP Network in Europe • Top three Global Mobile Data Network • First Media Contribution network in Europe • Biggest Carrier of VoIP traffic • Largest host for Online Games in Europe • Largest Wholesale Provider in Europe
Key priorities • World class service company • Successfully manage the migration from traditional fixed services to mobility and IP-based services, mainly in Sweden • New B2B sales approach • Growth in Eurasia • Quality networks and services • Improve efficiency