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					Interim Report
January - September, 2008



Lars Nyberg
President and CEO
  Growing sales and strong EBITDA



 Q3 2008 in brief
 • Net sales SEK 25,817 million (24,798)
    – In local currencies +3.3%
 • EBITDA* SEK 8,949 million (8,714)
    – EBITDA-margin* 34.7% (35.1)
 • EPS SEK 1.06 (1.20)

* Excl. non-recurring items




 2
Efficiency measures

• Improve operational efficiency
• Stable EBITDA margin despite price
  pressure and changing product mix
• Half way towards personnel reductions
  of 2,900
• Focus on net savings, per business
  area and business unit
• Gross savings effect for 2008 above
  SEK 1.5 billion compared to cost base
  2007




3
Growth opportunities

Create leading market positions
by organic growth and acquisitions
• Grow business in fast-growing and
  profitable markets
    – Market size, young and growing population
    – Low mobile penetration and high economic growth
    – Cultural fit and co-operation with strong local partners
    – Management expertise and resources
    – Geographical focus east, not west or south

• Controlling interests acquired in two mobile
  operators in Nepal and Cambodia
• Considering different options for Spain
  going forward


4
Strong business amid global financial turmoil
• TeliaSonera has a strong balance sheet
• Attractive and relatively non-cyclical
  industry with high barriers to entry
• Regulatory intervention, intense
  competition and customer migration
  remain primary challenges
• Unique position in the Nordic and Baltic
  region
• Well positioned in high-growth emerging
  markets
• Success based on providing high quality
  networks and first class services




5
Interim Report
January - September, 2008



Per-Arne Blomquist
Executive Vice President and CFO
Growing sales and strong EBITDA

    SEK million                                             Q3 2008   Q3 2007   Change %
    Net sales                                                25,817    24,798      4.1
    EBITDA*                                                   8,949     8,714      2.7
       EBITDA* margin                                        34.7%     35.1%
    Operating income*                                         8,203     8,354      -1.8
    Non-recurring items                                        -299      -114    162.3
    Operating income                                          7,904     8,240      -4.1
    Financial items                                            -818      -335    144.2
    Net income**                                              4,772     5,399     -11.6


    EPS, SEK                                                   1.06      1.20     -11.6
    CAPEX                                                     3,567     3,339      6.8
       CAPEX-to-sales                                        13.8%     13.5%
    Free Cash Flow                                            2,829     5,078     -44.3


    * Excluding non-recurring items
    ** Attributable to shareholders of the parent company


7
Growing sales and strong EBITDA

      SEK million                                           Jan-Sep 2008   Jan-Sep 2007   Change %
      Net sales                                                   75,489         71,423      5.7
      EBITDA*                                                     24,682         23,813      3.6
         EBITDA* margin                                           32.7%          33.3%
      Operating income*                                           22,363         21,120      5.9
      Non-recurring items                                         -1,071         -1,023      -4.7
      Operating income                                            21,292         20,097      5.9
      Financial items                                             -1,462           -615    137.7
      Net income**                                                13,367         13,207      1.2


      EPS, SEK                                                      2.98           2.94      1.2
      CAPEX                                                       11,272          8,994     25.3
         CAPEX-to-sales                                           14.9%          12.6%
      Free Cash Flow                                               6,410         11,165     -42.6


    * Excluding non-recurring items
    ** Attributable to shareholders of the parent company


8
Net sales trend

                  27
                                                                                 100.4
                                                                       99.4
                  26
                                                             98.0
                                                                                25.8
                                                    96.3
                  25                                                   25.3
                                                    24.9
    SEK billion




                                           24.8

                  24                       94.6               24.4
                                23.9
                                 93.0
                  23     91.8
                        22.7
                  22


                  21
                       Q1 07    Q2 07     Q3 07     Q4 07    Q1 08     Q2 08   Q3 08

                                        Net sales      Rolling 4 quarters

9
 EBITDA trend (excl. non-recurring items)
                   10
                        32.0
                                                                               31.9
                    9
                                                                    31.7     8.9
                                          8.7
                                 31.6
                    8
                                         31.6                        7.9
     SEK billion




                         7.6                                7.7
                                 7.5
                    7                             7.2

                                                            31.2
                    6
                                                  31.0

                    5


                    4
                        Q1 07   Q2 07    Q3 07   Q4 07    Q1 08     Q2 08   Q3 08

                                        EBITDA      Rolling 4 quarters

10
 Statement of cash flows Q3 2008

     SEK million                                       Jul - Sep 2008   Jul - Sep 2007
     EBITDA excluding non-recurring items                    8,949            8,714
     Dividends received from associated companies                -            1,547
     Interest paid (net)                                      -542             -409
     Income taxes paid                                      -1,010             -925
     Payment of restructuring provisions                       -61              -11
     Difference between paid/recorded pensions                 103             -174
     Changes in working capital and other items, net        -1,029             -349
     Cash flow from operating activities                     6,410            8,393
     Cash CAPEX                                             -3,581           -3,315
     Free cash flow                                          2,829            5,078
     Cash flow from other investing activities                -436             -879
     Cash flow before financing activities                   2,393            4,199
     Cash flow from financing activities                      -148           -3,683
     Change in cash & cash equivalents                       2,245              516



11
 Strong financial key ratios


                                   Sep 30, 2008   Dec 31, 2007

     Return on equity*                16.8%          18.6%

     Return on capital employed*      17.3%          19.4%

     Equity/assets ratio              50.1%          50.3%

     Net debt/equity ratio            41.4%          31.8%
     * Rolling 12 months



     One of the best rated Telecom Operators in Europe




12
 Debt maturity schedule (excl. lease and pension liabilities)
                                                                                                   September 30, 2008
     Debt Maturing next 12 months (SEK million)
      2,500                                                                                            TeliaSonera AB
      2,000
                                                                                                       TeliaSonera Finland Oyj
      1,500                                                                                            (formerly Sonera Corporation)

      1,000

       500

            0
                 10/08     11/08     12/08   01/09   02/09     03/09     04/09    05/09    06/09    07/09   08/09    09/09


     Debt Portfolio Maturity Schedule (SEK billion), Oct 2008 & onwards
     10.0

      8.0

      6.0

      4.0

      2.0

      0.0
                2008     2009      2010   2011   2012   2013      2014     2015     2016    2017    2018    2019     2020


13
 Liquidity position, TeliaSonera Group


     Cash and cash equivalents, less blocked funds approx. SEK 7.6 billion*


     Committed bank lines                                     Maturity                Size               Amount undrawn
     Bilateral credit facility                               Sep 2010             SEK 2 billion            SEK 2 billion
     Syndicated revolving credit facility                    Dec 2011             EUR 1 billion            EUR 1 billion
     Bilateral credit facility                               Apr 2013           SEK 1.4 billion          SEK 1.4 billion

                                                                                                         September 30, 2008




     * On October 1, 2008, payment of approx. SEK 3.3 billion for the acquisitions in Nepal & Cambodia

14
 Outlook for 2008 unchanged
          Net sales   • Expected to show stable growth in the financial year 2008
                        compared to the previous year
                           – Jan-Sep 2008 +5.7% and in local currencies +5.2%

     EBITDA-margin    • TeliaSonera’s ambition for 2008 is to maintain the EBITDA-
                        margin level of 2007, excl. non-recurring items, despite
                        continued aggressive investments in future growth and in
                        the quality of our networks and services
                           – Jan-Sep 2008 32.7%

        Net income    • Is estimated to be somewhat higher than in 2007, excluding
                        the positive one-off items of approx. SEK 2.0 billion in 2007
                        and potential positive one-off items in 2008
                           – Jan-Sep 2008 net income* approx. +3.7%

            CAPEX     • Will be driven by continued investments in broadband and
                        mobile capacity and is expected to be around SEK 15 billion
                        in 2008
                           – Jan-Sep 2008 approx. SEK 11.3 billion
                                                          *Attributable to shareholders of the parent company

15
Interim Report
January - September, 2008
Appendix
 Key Financials                                       – Income Statement and Cash Flow

         SEK million                                                                    Jul - Sep 2008                 Jul - Sep 2007

        Net sales                                                                                   25,817                   24,798
        Gross income                                                                                11,920                   11,433
        Margin (%)                                                                                    46.2                     46.1
        EBITDA excl. non-recurring items                                                             8,949                    8,714
        Margin (%)                                                                                    34.7                     35.1
        Operating income excl. non-recurring items                                                   8,203                    8,354
        Margin (%)                                                                                    31.8                     33.7
         Net financials                                                                               -818                     -335
         Income taxes                                                                               -1,675                   -1,692
        Net income1)                                                                                 4,772                    5,399
        Earnings per share2) (SEK)                                                                      1.06                    1.20
        CAPEX                                                                                         3,567                   3,339
        In relation to net sales (%)                                                                    13.8                    13.5
        Free cash flow                                                                                2,829                   5,078

 1) Attributable to shareholders of the parent company
 2) EPS calculated on net income attributable to shareholders of the parent company, divided by the number of shares


18
 Q3 2008 Net Sales +4.1%
 SEK million            • Growth in IP based services and
                          international carrier sales almost
                          compensated for the decline in
                          traditional fixed line services                                     +11         25,817
                                                                          +499
                                  +591
                                                        -82

               24,798
                                                           • Total growth in local currencies 18.5%
                                                             through continued volume growth
                                                           • Maintained market leadership in
                                                             Kazakhstan and Azerbaijan; reached
                                                             market leading position in Tajikistan

                            • Growth in the quarter driven by
                                 • customer intake in Spain
                                 • acquisition of ComHouse in Norway
                                 • increased mobile broadband usage
                            • Volume growth offset price erosion and
                              regulation




           Net sales Q3      Mobility Services      Broadband            Eurasia            Other &      Net sales Q3
               2007                                  Services                             Eliminations       2008

                                      Acquisitions +0.7% and FX +0.8%

19
 Q3 2008 Operating Income Year-on-Year
     SEK million
                                                                     • Increased depreciation in common
          • Net sales +591                                             function IT -30
          • Improved margin due to cost                              • Capital gain in Q3 2007 from
            efficiency, while changed interconnect                     Telefos’ sale of Eltel -631
            fees negatively impacted earnings
                                                           +506            -687
            8,354            +167            -137
                                                                                          8,203           -299

                                                                                                                            7,904

                         • Net sales -82
                         • Lower sales in Sweden
                           not compensated by          • Net sales +499
                           cost reductions                                                   • Primarily restructuring
                                                       • EBITDA-margin
                         • Growth related costs in       maintained at close to 50%            measures, offset by release
                           Denmark and general           in consolidated operations            of provision for fiber network
                           cost increases in Baltics     despite increasingly                  in France +360
                         • Improved earnings in          competitive market
                           Wholesale due to strong       environment
                           top-line growth, cost       • Higher income from
                           control and efficiency        associated companies in
                           improvements                  Russia +186 and Turkey
                                                         +251




           Operating       Mobility       Broadband       Eurasia         Other          Operating     Non-recurring      Operating
         income excl.      Services        Services                                    income excl.      Q3 2008         income Q3
         non-recurring                                                                 non-recurring                        2008
           Q3 2007                                                                       Q3 2008

20
 Q3 2008 Net Sales vs Q2 2008 +2.2%
 SEK million         • Continued decline in traditional                    • Seasonally lower sales to corporate
                       fixed line services mainly in                         customers in Other Business Services
                       Sweden not fully compensated
                       by growth in IP services and
                       international carrier
                                                          +552             -68
                                                                                            -131         25,817
                           +216
                                              -26
       25,274

                                                          • Strong revenue growth in
                                                            all markets accelerated by
                                                            seasonal increase in Q3
                       • Increase of 2% driven by
                           • Continued growth in Spain
                           • Latvia and Denmark
                           • Exchange rate effects




      Net sales Q2        Mobility        Broadband       Eurasia          Other         Eliminations   Net sales Q3
          2008            Services         Services                                                         2008

21
 Q3 2008 Operating Income vs Q2 2008
     SEK million         • Net sales +552                             • Differences in cost allocation
                         • Maintained margins in                        of Common functions to BAs
                           consolidated operations partly               between quarters
                           offset by lower income from                • Improved result in Holding +25
                           associated company Turkcell
                                                             +72              -107           8,203           -299           7,904
                                          +588
            7,410         +240


                                 • Net sales -26                                                  • Primarily restructuring
                                 • Seasonally low costs for personnel                               measures, offset by release
                                   related expenses and customer                                    of provision for fiber
                                   installations                                                    network in France +360


                         • Net sales +216
                         • Margin improvements in Sweden,
                           Finland, Denmark and Lithuania
                           largely driven by seasonally low
                           costs in Q3 and cost savings




           Operating     Mobility       Broadband           Eurasia           Other         Operating     Non-recurring    Operating
         income excl.    Services        Services                                         income excl.      Q3 2008       income Q3
         non-recurring                                                                    non-recurring                      2008
           Q2 2008                                                                          Q3 2008

22
       Credit statistics – TeliaSonera Group
                                                  TeliaSonera Estimates
      SEK billion                                                      Q3 2008 (A)                     2007
      Gross Debt                                                          58.4                         43.6
      Cash & Liquidity 1)                                                   7.6                         6.7
      Net Debt                                                            50.8                         36.9


      Moody’s
      Adjusted Net Debt 2)                                                73.1                         55.6
      Adjusted Retained Cash Flow 3)                                      16.3                         19.1
      Adjusted (RCF/Net Debt)                                            22%                           34%


      S&P
      Adjusted Net Debt 4)                                                64.7                         49.2
      Adjusted EBITDA 5)                                                  32.3                         31.4
      Adjusted (Net Debt/EBITDA)                                           2X                          1.6X
     (A) TeliaSonera estimates per Q3-2008 (rolling 12-months for EBITDA & Cash-Flow numbers)
          1) Cash and cash equivalents excl. blocked funds (1.2) and excl. available unutilized committed revolving credit facilities (13.1)
          2) Net debt + pensions (4.9) + non-standard adj. etc. (4) + operating lease adj. (13.4) (Moody’s approach)
          3) Cash flow before change in working cap (24.9) + operating lease adj. (1.8 ) - aligned & unusual FFO (0.9) - ordinary dividend payment
              (common & minority) (9.5) (Moody’s approach)
          4) Net debt + adj. incl. pensions & credit guarantees (6.9) + operating lease adj. (7) (S&P’s approach)
          5) EBITDA, excl. non-recurring, adj. for operating lease effect etc. (+0.4) (S&P’s approach)


23
 TeliaSonera pension obligations
     • TeliaSonera uses defined benefit pension plans for most employees
       in Sweden, Finland & Norway.
     • TeliaSonera uses Government Bond yields when discounting the Swedish
       pension liabilities, which account for ca 85% of the total pension liabilities.
     • TeliaSonera pension funds are funding vehicles for those pension obligations,
       the remainder recorded on the balance sheet, covered via credit guarantees
     • Rating agencies would typically define our “pension gap” to be approx. up to
       SEK 4.9 billion (TeliaSonera est. as of Q3 2008)

        SEK billion                                 Q3 2008 est.   2007
        Present value of pension obligation            23.2        20.8
        Fair value of plan assets                      18.1        19.3
        Pension obligations less plan assets             5.1        1.5
        Booked Pension Liability / Receivable (-)        0.2        0.2
        ”Pension gap”                                    4.9        1.3




24
 TeliaSonera pension obligations (cont’d)
     Main reasons for the increase in the estimated “pension gap” by some SEK 3.6 billion
     (est. Q3 2008 vs. YE 2007)
      • Decrease of discount rate for pension obligations
         – Pension liabilities increased by SEK 2.4 billion

      • Negative overall returns on assets (total approx. SEK 1.2 billion)
         – Other assets (36%) return approx. -21% (shares, hedge funds and other (private equity & real estate))
         – Fixed income (64%) return approx. +2.5%

      • Based on estimated impact as of Q3-2008 the expected increase in pension costs (P/L) in 2009 would
        amount to some SEK 250-300 million, mainly consisting of amortization of actuarial losses etc.
        (outside the IAS-corridor)

       TeliaSonera Group assumptions regarding pensions

                                                      Q3 2008 est.     YE 2007
       Discount rate                                          3.9%       4.6%
       Expected return on Plan Assets (Net)                   5.1%       5.1%
       Expected salary increase                               3.2%       3.2%




25
 TeliaSonera pension obligations (cont’d)

     TeliaSonera Group pension related risks
       • Reduction of the discount rate for pension obligations by 100 bps from a
         level of 3.9%, would imply an increase in TeliaSonera Group pension
         liabilities, all else equal, by some SEK 3.6 billion

       • The expected impact on fixed income Plan Assets, for the same change
         in overall interest rates, would imply an increase in value, all else equal,
         by some SEK 1 billion
           – “Net impact” thus SEK 2.6 billion
             (other Plan Assets assumed yielding a zero return)

       • “Exogenous risks” include e.g. change in Life Expectancy




26
 TeliaSonera AB credit ratings (A3/A-)
           TeliaSonera AB long-term ratings migration history 2002-to-today
           AA 5
           AA-4
           A+ 3
           A 2
           A- 1
               0
               Q1/02     Q4/02   Q1/03   Q4/03      Q4/04      Q1/05    Q4/05    Q4/06    Q4-07    Q3-08

                   Moody’s (A3/P-2)                                 Standard & Poor’s (A-/A-2)

     • January 8, 2003, lowered long-term debt              • February 5, 2003, lowered long-term debt
       rating to A2                                           rating to A
     • Nov 1, 2006, outlook changed to Negative             • October 28, 2005, lowered long-term debt
     • Oct 30, 2007, lowered long- and short-term             rating to A- and short-term debt rating to A-2
       debt rating to A3 and P-2 respectively               • September 29, 2008, debt ratings confirmed
     • Outlook: Stable                                      • Outlook: Stable


         One of the best rated Telecom Operators in Europe
27
 TeliaSonera’s funding strategy
     • Liquidity position, as of September 30, 2008
        – Cash and cash equivalents, less blocked funds approx. SEK 7.6 billion
        – Available unutilized amount of committed bank credit lines approx. SEK 13.1 billion

     • Primary means of external borrowing
        – EMTN (€7 billion) 1)
        – Swedish FTN (SEK 12 billion) 2)
        – ECP (€1 billion) 3)

     • TeliaSonera’s intention is to continue to refinance the outstanding Sonera
       (“TSF”) debt as well as any new financing required

     • Expected total (EMTN) funding in 2009
        – Approx. EUR 750 million (equivalent)


 1) Approx. €4.9 billion utilized of the EMTN
 2) Approx. SEK 4.8 billion utilized of the FTN (in the form of CP’s)
 3) ECP programme presently unutilized

28
 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.




29
Interim Report
January - September, 2008

				
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