Slides
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• 2% organic growth in end-user service revenue • 11% organic growth in underlying EBITDAaL boosted by transformation • Strong equity free cash flow of 1.8bn • Workforce reduced by >600 positions • 99.9% 5G population coverage in Sweden • Creating the first pan-Baltic towerco • Named one of the World’s Best Companies by Time 2 Highlights
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• Transformation continues to deliver 3 1) Organic growth rate (except for EFCF) • 2) Excluding spectrum and leases Sweden Business in Q3 • EUSR growth of 5% • Solid growth in Mobile • Strong growth in Solutions The Group in Q3 • EUSR growth of 2% driven by the Baltics and Sweden Business • Underlying EBITDAaL growth of 11% driven by sharp cost control and Baltic end-user service revenue growth • Strong EFCF growth driven by underlying EBITDAaL and lower Capex • Financial leverage of 2.0x ahead of the second dividend tranche on 15 October Sweden Consumer in Q3 • EUSR unchanged • Growth in core connectivity offset by Boxer decline The Baltics in Q3 • EUSR growth of 7% • Strong Underlying EBITDAaL growth of 20% supported by strong cost measures
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• sweden
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• Mobile prepaid Fixed broadband EUSR SEKm, YoY growth Digital TV EUSR SEKm, YoY growth Mobile postpaid Sweden Consumer: Further improvements in Mobile & TV Mobile EUSR SEKm, YoY growth 5 +5% +3% -4% -6% -10% -9% -8% Q3 highlights • Mobile end-user service revenue (EUSR) grew 3% due to 4% postpaid growth partly offset by continued prepaid decline • Fixed broadband EUSR grew 3% mainly driven by ASPU growth • EUSR for Digital TV declined by 8% entirely due to the continued impact of migrating Boxer off the terrestrial network
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• Sweden Consumer: Improving mobile ASPU RGU base & QoQ (‘000s) Fixed broadband RGU & ASPU Digital TV RGU & ASPU ASPU growth YoY Mobile postpaid RGU & ASPU Q3 highlights • Solid volume growth in Mobile postpaid despite continued slow handset market. ASPU growth of 1% (2% excl. Tele2 fair value accounting) • ASPU growth for Fixed broadband driven by price adjustments. Intense competition and increasing access fees in open networks hampered volume growth • Good intake on the new flexible TV & streaming portfolio and enhanced Sports package, meanwhile Boxer volume continues to decline RGU growth YoY 6 -3 -5 -24 -25 -7
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• Fixed Solutions Mobile Mobile ASPU YoY growth (excl. IoT) End-user service revenue SEKm, YoY growth Sweden Business: Strong topline growth Mobile RGU & net intake Base & QoQ excl. IoT (‘000s), YoY growth Q3 highlights • Mobile EUSR growth of 5% driven by IoT and solid RGU growth among large customers. ASPU impacted by change in customer mix YoY • Solutions EUSR growth of 8% and slight growth for Fixed • Total EUSR growth of 5% despite continued economic headwinds • 7
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• Consumer Underlying EBITDAaL & margin SEKm, YoY growth Operating cash flow and cash conversion, LTM, SEKm Business Sweden financials: 8% EBITDAaL growth End- user service revenue SEKm, YoY growth Q3 highlights • EUSR grew by 1% driven by Business while Consumer were stable despite continued headwind from the Boxer migration • Strong underlying EBITDAaL growth of 8% driven by the ongoing transformation. As compared to Q2, growth was impacted by substantial increases in marketing expenses and by notable cost inflation in access fees from open networks • Improving cash conversion of 66% LTM 8 Underlying EBITDAaL Underlying EBITDAaL margin Operating cash flow Cash conversion Cash conversion = operating cash flow / underlying EBITDAaL •
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• Baltics
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• Underlying EBITDAaL & margin SEKm, YoY growth Operating cash flow and cash conversion, LTM, SEKm Latvia Baltics financials: 20% EBITDAaL growth End-user service revenue SEKm, YoY growth Lithuania Q3 highlights • Continued solid EUSR growth of 7% driven by both ASPU and postpaid volume across markets • Strong underlying EBITDAaL growth of 20% with double-digit growth across markets driven by EUSR growth and cost control • Improving cash conversion of 78% LTM 10 Underlying EBITDAaL Underlying EBITDAaL margin Organic growth rate • Cash conversion = operating cash flow / underlying EBITDAaL Estonia Operating cash flow Cash conversion
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• Postpaid RGU base & QoQ (‘000s) Latvia – Mobile RGU & ASPU ASPU growth YoY Baltics KPIs: ASPU growth across markets Estonia – Mobile RGU & ASPU Q3 highlights • Mobile postpaid increased by 21,000 RGUs driven by Latvia and Lithuania • Mobile prepaid declined by 8,000 RGUs • Blended organic ASPU growth of 12% driven by price adjustments and prepaid to postpaid migration • Lithuania – Mobile RGU & ASPU Postpaid RGU base & QoQ (‘000s) Prepaid RGU base (‘000s) RGU growth YoY 11 Organic growth rate
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• Financial overview
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• Group results Comments • Underlying EBITDA grew mainly driven by end-user service revenue growth in the Baltics and sharp cost control across operations • Items affecting comparability were mainly driven by redundancy costs related to workforce reductions • Net interest and other financial items decreased due to lower financing costs for outstanding debt • Income tax increased largely due to higher taxable profits • 1 13 2 3 4
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• Group cash flow 14 Comments • Capex paid decreased due to reduced investments, partly driven by successful prioritisation and partly by the deferral of planned investment to 2026 • Changes in working capital were mainly impacted by reduced liabilities • Net financial items paid excl. leasing decreased due to timing of coupon payments and lower financing costs for outstanding debt • 2 3 1
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• Leverage at 2.0x Comments • Economic net debt decreased by SEK 3.3bn compared to year-end 2024 driven by the cash generated in the business, exceeding the payout of the first tranche of the ordinary dividend • Leverage of 2.0x was below the lower end of the target range of 2.5-3.0x. Adjusted for the payout of the second tranche of the ordinary dividend (payable in October), pro forma leverage would have been 2.2x. • Economic net debt to underlying EBITDAaL LTM Economic net debt, SEK billion Leverage 15 Economic net debt = Net debt excluding lease liabilities •
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• End-user service revenue1 Underlying EBITDAaL1 Capex to sales2 2025 guidance 1) Organic growth rate • 2) Excluding spectrum and leases 16 2025 guidance updated Low single-digit (unchanged) Slightly above 10% (unchanged) ~12% (previously ~13%)
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