FOURTH QUARTER 2012
Tele2 AB
February 5, 2013
2
Agenda
• About Q4 2012
• Financial review
• Concluding remarks
3
Tele2 Group Q4 Highlights
• Net mobile customer intake of 0.7 million leading to a total customer
base of 38.2 million
• Net sales growth for the Group amounted to 6%, corresponding to
SEK 11,275 million
• EBITDA amounted to SEK 2,672 million, equivalent to a margin of 24%
• CAPEX amounted to SEK 1,478 million
4
Focus
Continue to grow customer base and maximize the 2G opportunity
Evaluate possibilities to expand carefully through new licenses as well as by
complementary acquisitions
Make progress on technology neutrality
Market Area Russia: Overview
Population Appr. 143 million
Tele2 Russia
43 regions of Russian Federation
22.7 million subscribers
Mobile operator #4 in Russia in terms
of subscribers and revenue
Represents 30% of total net sales in Q4 2012
5
Q4 Highlights Russia
EBITDA and
EBITDA MARGIN
NET SALES and
YoY NET SALES GROWTH
CUSTOMER BASE and
CUSTOMER INTAKE
SEK Million
YoY net sales
growth (right)
Net sales (left)
EBITDA
margin (right)
EBITDA (left) Customer base (left)
Customer net
intake (right)
Thousands of customers SEK Million
• Strong customer net intake of 373,000
• Stable EBITDA margin, amounting to 37%
• ARPU grew by 4% YoY, and MoU by 7% YoY
0
200
400
600
800
16,000
18,000
20,000
22,000
24,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
0%
5%
10%
15%
20%
0
1,000
2,000
3,000
4,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
30%
33%
35%
38%
40%
0
400
800
1,200
1,600
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
6
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
201220 223 218 229 234 235
0
50
100
150
200
250
300
350
400
2009 2010 2011 Q1-12 Q2-12 Q3-12 Q4-12
134%
144%
148%153%
154%158% 161%
120%
130%
140%
150%
160%
170%
0
50
100
150
200
250
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
subbase ex-Tele2 Tele2 penetration %
ARPU DEVELOPMENT
NET ADDITIONS
Thousands of subscribers
TELE2 SUBSCRIBERS AS PART OF TOTAL RUSSIAN
MOBILE MARKET
The Russian mobile market overview
Million subscribers
APPM
1/100 USD
Source: Company data, AC&M Consulting
RUB
Tele2
Vimpelcom MegaFon MTS
9% 10% 8%
7
-3%-1% -2% -2% -2%
86% 88% 89% 85% 87%
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
7%
7%8%
7%7%
8%
9%8%
7%8% 9%
5%
7%
9%
11%
13%
15%
17%
19%
Quarterly Churn
Customer statistics
• Tele2’s churn level is the lowest in the industry,
showing normal seasonality development
• Tele2’s own call centers show the highest
customer satisfaction in Russia combined with
decreasing costs per contact
CUSTOMER SERVICE SATISFACTION
OVERALL
Top-3 on 10 point scale
Bottom-3 on 10 point scale
Source: Company data, AC&M Consulting Tele2
Vimpelcom MegaFon MTS
8
0% 20% 40% 60% 80% 100% 120%
MTS
Megafon
Beeline
Tele2
0%
20%
40%
60%
80%
100%
120%
2009 2010 2011 2012
0%
20%
40%
60%
80%
100%
120%
2009 2010 2011 2012
Cost efficiency Tele2 Russia
CUSTOMERS per EMPLOYEE
Continued focus on
cost efficiency
SALES and MARKETING COSTS / REVENUE
ADMINISTRATIVE COSTS / REVENUE
Base level 2009
Base level 2009
-15%
-36%
9
92% 91% 92% 92% 91%
8% 9%8% 8% 9%
0
1,000
2,000
3,000
4,000
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Q4 Revenue Source Development
Voice and data demonstrate 8% and 15% YoY growth
respectively
VOICE & OTHER and DATA REVENUE SPLIT DEVELOPMENT
Data access Voice & other
SEK millions
Source: Company data
10
Regulatory update: significant developments
Technology neutrality The mobile operators shall jointly conduct LTE trials on 1,800 MHz, with trial report to be
submitted by June1, 2013. A decision is pending before end of 2013.
On Dec. 28, 2012 the Prime Minister approved a roadmap for "Development of Competition and
Improvement of Antimonopoly Policy” listing a number of issues impeding the development of the
telecom market. Lack of TN is regarded as the main obstacle to the development of competition
in the Russian telecom market, concluding that it is necessary to introduce TN by the end of 2013
* GKRCh – State Commission on Radio Frequencies
MNP
MNP launch is due on Dec. 1, 2013. Customer fee for porting shall not exceed 100 Rub. Details of
MNP implementation such as regional or national porting, MNP database set-up, charges incurred
for porting subs and MNP database administration etc. shall be defined by the Regulator by Q2,
2013
New GSM licenses
GKRCH approved distribution of 9 regional GSM licenses (1800 MHz band) via auctions.
Roscomnadzor is expected to work out the auctions terms and conditions as well as timing during
Q1 2013
11
Tele2 Russia forward looking statement
The following assumptions should
be taken into account when
estimating the operational
performance of the Russian mobile
operations in 2013:
• Tele2 expects total revenue of between
SEK 13,700 - 13,800 million.
• Tele2 expects EBITDA of between SEK
4,800 - 4,900 million.
12
Market Area Nordic: Overview
Population
14.4 million
Tele2 Sweden and Tele2 Norway
Home market and test bed for new services
Represents 40% of total net sales in Q4 2012
Sweden 29%; Norway 11%
Focus
Sweden: Build on mobile growth and 4G roll-out coupled with household / corporate
fiber strategy
Norway: Roll out own network and focus on bucket-price subscriptions
13
Q4 Highlights Tele2 Sweden
• Net sales amounted to SEK 3,229 million and
EBITDA amounted to SEK 859 million
• Mobile service revenue growth of 5% YoY
• Mobile EBITDA margin of 29%, affected by high
expansion costs such as handset subsidies and
higher than expected intake for Comviq postpaid
Mobile Fixed telephony Fixed broadband Other Customer base (left)
Customer net
intake (right) EBITDA
margin (right)
YoY net sales
growth (right)
SEK Million SEK Million Thousands of customers
EBITDA and
EBITDA MARGIN
NET SALES and
YoY NET SALES GROWTH
MOBILE CUSTOMER BASE and
CUSTOMER INTAKE
-80
-40
0
40
80
3,000
3,250
3,500
3,750
4,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-4%
-2%
0%
2%
4%
0
1,000
2,000
3,000
4,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%
10%
20%
30%
40%
0
250
500
750
1,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
14
0%
1%
2%
3%
4%
5%
6%
Q1 2012 Q2 2012 Q3 2012 Q4 2012
Strong underlying revenue growth despite
continued prepaid decline
UNDERLYING MOBILE REVENUE GROWTH
* Underlying revenue excludes handsets and operator revenue
15
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Postpaid Prepaid
0%
10%
20%
30%
40%
50%
60%
2H 2010 1H 2011 2H 2011 1H 2012
Market average Tele2 Sweden
Postpaid growth key to mitigate our strong position
in a declining prepaid market
TELE2 SWEDEN MOBILE CUSTOMER STOCK
TELE2 SWEDEN CUSTOMER CHURN PATTERN
Thousands
• External churn down
20% during Q3 and Q4
• Cannibalization between
brands on postpaid
offerings lower than
expected
PREPAID SHARE OF CUSTOMER STOCK
16
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1201 1202 1203 1204 1205 1206 1207 1208 1209 1210 1211 1212
Smartphone market development
Regular handset Smartphone
Note: Postpaid residential, quantity of handsets
SMARTPHONE INSTALLED BASE SALES of TOP TEN MOBILE PHONES
TELE2 SWEDEN (Q4 2012)
17
Change in strategy already commenced
18
New distribution concept and prepaid
product under Comviq brand
19
3G 4G
Jun-11 Jun-12 Jan-12 Dec-12
MB
4G main source of data growth in Sweden
3G and 4G DATA USAGE
DEVELOPMENT
4G NETWORK ROLL-OUT
99% population coverage
end of Q1
20
Continued pursuit of growth in line with new
strategy
Bucket price plans to handle voice to data
transition
Launching platform for upsale of data
Augmenting Billing system and data warehouse,
leading to a better understanding of our customers
Continued roll-out of 4G network along with 4G
handset push
VoLTE implementation to improve network efficiency
and voice quality
Continued roll-out of Comviq distribution concept
together with Reitan
Continued roll-out of Tele2 stores
Increased focus on B2B
21
Tele2 Sweden forward looking statement
The following assumptions should
be taken into account when
estimating the operational
performance of the Swedish mobile
operations in 2013:
• Tele2 expects total revenue of between
SEK 10,100 - 10,300 million.
• Tele2 expects EBITDA of between SEK
2,900 - 3,100 million.
22
Q4 Highlights Tele2 Norway
• Strong focus on network roll-out
• Satisfactory net intake of 15,000 mobile customers
• Tele2 Norway reported total external revenue of SEK 1,222
million, of which SEK 1,153 million was mobile revenue
• Mobile EBITDA negative, affected by high sales and marketing
costs as well as handset subsidies
Mobile Fixed telephony Fixed broadband Other Customer base (left)
Customer net
intake (right) EBITDA
margin (right)
YoY net sales
growth (right)
SEK Million SEK Million Thousands of customers
EBITDA and
EBITDA MARGIN
NET SALES and
YoY NET SALES GROWTH
CUSTOMER BASE and
CUSTOMER INTAKE
-10%
-5%
0%
5%
10%
15%
-100
-50
0
50
100
150
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-30
-15
0
15
30
0
400
800
1,200
1,600
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
0
400
800
1,200
1,600
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
23
Tele2 Norway forward looking statement
The following assumptions should
be taken into account when
estimating the operational
performance of the Norwegian
mobile operations in 2013:
• Tele2 expects total revenue of between
SEK 4,200 - 4,300 million.
• Tele2 expects EBITDA of between SEK
70 - 80 million.
• Tele2 expects capex of between SEK
900 -1,000 million.
24
Market Area Western Europe:
Overview
Focus
Netherlands Build a full service MNO, while growing existing business
Austria B2B & continuous integration of Silver Server
Germany Grow Fixed Via Mobile product
Population
108 million
Leading the group in business to business services
and consumer fixed broadband
Represents 17% of total net sales in Q4 2012
Netherlands 12%; Germany 2%; Austria 3%
25
Q4 Highlights Tele2 Netherlands
SEK Million SEK Million Thousands of customers
• Successfully secured mobile licenses. Roll out of 4G
network will make Tele2 the fourth mobile operator
• Mobile intake continues at previous quarter levels,
significant part in the high value mobile postpaid
segment
• EBITDA affected by high mobile acquisition costs
Mobile Fixed telephony Fixed broadband Other Customer base (left)
Customer net
intake (right) EBITDA
margin (right)
YoY net sales
growth (right)
EBITDA and
EBITDA MARGIN
NET SALES and
YoY NET SALES GROWTH
CUSTOMER BASE and
CUSTOMER INTAKE
-10%
0%
10%
20%
30%
40%
-200
0
200
400
600
800
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-40
-20
0
20
40
0
300
600
900
1,200
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-15%
-10%
-5%
0%
5%
10%
0
400
800
1,200
1,600
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
26
Dutch regulatory requirements
• All frequencies are technology neutral
• License duration: 17 years, valid until 2030 in sync with 2,600 MHz
licenses
• 11,000 existing sites, of which an increasing number are independent
due to MNO’s selling off sites
• MNOs have an obligation to share sites in towers, and to cooperate on
roof top sites
27
= Tele2’s current Fiber optic Network
MNO building blocks
• Tele2 is well positioned
• Many building blocks are already
available
• Most importantly our own fiber optic
nation wide network
28
Dutch 4G launch
2x 10 MHz 800MHz band licenses activated on January 1st 2013
We will start rolling out our own out 4G Network in 2013
Ambition to launch as soon as possible with 4G propositions
4G technique will offer new experience to Dutch consumers
Tele2 Netherlands has a growing mobile customer base (MVNO)
29
The following assumptions should
be taken into account when
estimating the operational
performance of the Dutch mobile
operations in 2013:
• Tele2 expects total revenue of between
SEK 1,600 – 1,700 million.
• Tele2 expects EBITDA of between SEK
-50 to -75 million.
• Tele2 expects capex of between SEK
2,000 – 2,500 million, whereof licences
for 4G/LTE SEK 1,400 million.
• The mobile operations should reach
EBITDA break-even 3 years after
commercial launch of 4G/LTE services.
Tele2 Netherlands forward looking statement
30
Q4 Highlights Tele2 Germany
and Tele2 Austria
TELE2 GERMANY
EBITDA and EBITDA MARGIN
TELE2 AUSTRIA
EBITDA and EBITDA MARGIN
EBITDA
margin (right)
EBITDA (left) EBITDA
margin (right)
EBITDA (left)
SEK Million SEK Million
• Tele2 Germany: Fixed via Mobile (FVM) partly
compensates the decline in fixed, EBITDA margin
affected by high acquisition costs on FVM
• Tele2 Austria: Focus on growing the B2B segment
resulted in an increased net intake
0%
10%
20%
30%
40%
0
30
60
90
120
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
0%
10%
20%
30%
40%
0
30
60
90
120
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
31
Focus
Continued rapid market share growth in Kazakhstan
Efficiency improvements in Baltics
Improvements in market share growth in Croatia
Market Area Central Europe and Eurasia:
Overview
Population
28 million
Represents 13% of total net sales in Q4
2012
Estonia 2%; Latvia 2%; Lithuania 3%;
Croatia 3%; Kazakhstan 3%
32
• Commercial launch of 4G in November
• Modernization of network currently ongoing
• Focus on efficiency improvements, EBITDA affected by
price war in the postpaid segment
Q4 Highlights Tele2 Estonia
MOBILE CUSTOMER BASE
and CUSTOMER INTAKE
Thousands of customers
Mobile customer base (left)
Customer net
intake (right)
SEK Million
NET SALES and
YoY NET SALES GROWTH
YoY net sales
growth (right)
Net sales (left)
EBITDA and
EBITDA MARGIN
EBITDA
margin (right)
EBITDA (left)
SEK Million
-15
-8
0
8
15
0
150
300
450
600
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
0%
3%
6%
9%
12%
0
75
150
225
300
Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%
10%
20%
30%
40%
0
20
40
60
80
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
33
Q4 Highlights Tele2 Latvia
• Tele2 Latvia maintains high efficiency in a competitive market
• EBITDA margin amounted to 32%
• Rolling out 4G when commercially attractive
CUSTOMER BASE and
CUSTOMER INTAKE
Thousands of customers
Customer base (left)
Customer net
intake (right)
SEK Million
NET SALES and
YoY NET SALES GROWTH
YoY net sales
growth (right)
Net sales (left)
EBITDA and
EBITDA MARGIN
SEK Million
EBITDA
margin (right)
EBITDA (left)
-40
-20
0
20
40
0
300
600
900
1,200
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-10%
-5%
0%
5%
10%
0
100
200
300
400
Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%
10%
20%
30%
40%
0
30
60
90
120
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
34
Q4 Highlights Tele2 Lithuania
• EBITDA margin amounted to 29%, affected by high sales
and marketing costs in the quarter due to strong
competition on handset pricing leading to increased
subsidies
MOBILE CUSTOMER BASE
and CUSTOMER INTAKE
Thousands of customers
Mobile customer base (left)
Customer net
intake (right)
SEK Million
NET SALES and
YoY NET SALES GROWTH
YoY net sales
growth (right)
Net sales (left)
EBITDA and
EBITDA MARGIN
SEK Million
EBITDA
margin (right)
EBITDA (left)
-5
10
25
40
55
0
500
1,000
1,500
2,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-15%
-10%
-5%
0%
5%
0
100
200
300
400
Q4 11 Q1 12 Q2 12 Q3 12 Q4 1210%
20%
30%
40%
50%
0
40
80
120
160
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
35
Q4 Highlights Tele2 Croatia
• Strong sales growth of 13% YoY
• Continuing to improve market position
• Cash flow positive in Q4 and full year
CUSTOMER BASE and
CUSTOMER INTAKE
Thousands of customers
Customer base (left)
Customer net
intake (right)
SEK Million
NET SALES and
YoY NET SALES GROWTH
YoY net sales
growth (right)
Net sales (left)
EBITDA and
EBITDA MARGIN
SEK Million
EBITDA
margin (right)
EBITDA (left)
-150
-90
-30
30
90
0
250
500
750
1,000
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-10%
-3%
5%
13%
20%
0
125
250
375
500
Q4 11 Q1 12 Q2 12 Q3 12 Q4 120%
3%
6%
9%
12%
0
15
30
45
60
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
36
Q4 Highlights Tele2 Kazakhstan
• Continuing strong net intake of 361,000 customers
• Total number of customers amounted to 3.4 million
• Continuing rapid roll-out of new base stations for increased
coverage
CUSTOMER BASE and
CUSTOMER INTAKE Thousands of customers
Customer base (left)
Customer net
intake (right)
SEK Million
NET SALES and
YoY NET SALES GROWTH
YoY net sales
growth (right)
Net sales (left)
EBITDA and
EBITDA MARGIN SEK Million
EBITDA
margin (right)
EBITDA (left)
0
200
400
600
800
1,000
0
750
1,500
2,250
3,000
3,750
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
0%
125%
250%
375%
500%
0
75
150
225
300
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
-100%
-75%
-50%
-25%
0%
-160
-80
0
80
160
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
37
0%
20%
40%
60%
80%
100%
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
-400,000
0
400,000
800,000
1,200,000
1,600,000
2,000,000
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Overview of the Kazakh mobile market
MOBILE SUBSCRIBERS – MARKET SHARE NET ADDITIONS Thousands of subscribers
12.1%
Dalacom/Pathword
Tele2 Kcell/Activ
Beeline Dalacom/Pathword
Tele2 Kcell/Activ
Beeline
5.5%
*
* Q4 12 only Tele2 net additions
38
Tele2 Kazakhstan forward-looking statement
The following assumptions should be
taken into account when estimating the
operational performance of the Kazakh
mobile operations in 2013:
• Tele2 expects total revenue of between SEK
1,700 - 1,800 million.
• Tele2 expects EBITDA of between SEK -100
to -200 million.
• Tele2 expects capex of between SEK 550 –
650 million.
• Tele2 expects to reach a long-term mobile
customer market share of 30 percent.
39
Agenda
• About Q4 2012
• Financial review
• Concluding remarks
40
Group result Q4
• Net sales include equipment
sales of SEK 909 million
(728) +25%
• EBITDA margin development
explained by higher
expansion costs
SEK million Q4 2012 Q4 2011 ▲%
Net sales 11,275 10,852 3.9%
EBITDA 2,672 2,873 -7.0%
EBITDA margin (%) 23.7% 26.5% -2.8%
Depreciation & associated companies -1,145 -1,184 -3.3%
Depreciation of net sales (%) -10.1% -10.9% 0.8%
One-off items -3 -26
EBIT 1,524 1,663 -8.4%
Normalized EBIT 1,527 1,689 -9.6%
Normalized EBIT margin (%) 13.5% 15.6% -2.0%
Financial items -360 -83
Taxes -599 -270
Net profit from continuing operations 565 1,310 -56.9%
Discontinued operations - -
Net profit 565 1,310 -56.9%
41
Group result full-year
• Net sales include equipment
sales of SEK 2,875 million
(2,272) +27%
SEK million FY 2012 FY 2011 ▲%
Net sales 43,726 41,001 6.6%
EBITDA 10,960 11,212 -2.2%
EBITDA margin (%) 25.1% 27.3% -2.3%
Depreciation & associated companies -4,749 -4,158 14.2%
Depreciation of net sales (%) -10.8% -10.1% -0.7%
One-off items -558 -4
EBIT 5,653 7,050 -19.8%
Normalized EBIT 6,211 7,054 -12.0%
Normalized EBIT margin (%) 14.2% 17.2% -3.0%
Financial items -1,078 -674
Taxes -1,311 -1,625
Net profit from continuing operations 3,264 4,751 -31.3%
Discontinued operations - -7
Net profit 3,264 4,744 -31.2%
42
Currency movements full-year
EUR/EUR pegged and RUB currencies represent
57% of external sales and 73% of EBITDA
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
EUR RUB NOK KZT
Average FY 2012 vs. average FY 2011 Fixing rate Dec 31, 2012 vs Dec 31, 2011
43
Depreciation
Change year-on-year for Q4
• Acquisition of Network Norway:
SEK 49 million
• Upgrade/replacement of networks in
the Baltics: SEK 52 million
• Reduction in Sweden: SEK -79 million
• Growth in Russia: SEK 41 million
Depreciation and
Depreciation as a percentage of net sales
SEK million
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
12.0%
12.5%
0
200
400
600
800
1,000
1,200
1,400
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Depreciation Depreciation of net sales (%)
44
Financial items SEK million
Financial items in income statement Q4 2012 Q4 2011 FY 2012 FY 2011
Interest income/costs -247 -175 -957 -483
Exchange rate differences, external 5 29 -14 -24
Exchange rate differences, intragroup -76 105 59 13
Other financial items -42 -42 -166 -180
Total -360 -83 -1,078 -674
Financial items in cash flow statement Q4 2012 Q4 2011 FY 2012 FY 2011
Interest paid -280 -216 -668 -366
45
• Net taxes were negatively affected by SEK -127 million due to decreased tax rate in Sweden
from January 1, 2013
• Cash flow taxes 2013 expected to be SEK -1,000 million
Taxes SEK million
Taxes in income statement Q4 2012 Q4 2011 FY 2012 FY 2011
Normal -500 -378 -1,474 -1,733
One-off -99 108 163 108
Total -599 -270 -1,311 -1,625
Taxes in cash flow statement Q4 2012 Q4 2011 FY 2012 FY 2011
Normal -497 -163 -989 -948
One-off - - - -
Total -497 -163 -989 -948
46
Taxes Closing balances SEK million
3,296
2,977
4,263
-851-1,114
-933
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
2010 2011 2012
Deferred Tax Assets Deferred Tax Liabilities
47
Cash flow
• Full-year 2012 CAPEX according to balance sheet SEK 5,336 million (6,105)
• CAPEX for 2013 expected to reach SEK 6,000 million (incl. Dutch LTE license)
SEK million Q4 2012 Q4 2011 FY 2012 FY 2011
OPERATING ACTIVITIES
Cash flow from operations, excl. taxes and interest 2,579 2,859 10,744 11,261
Interest paid -280 -216 -668 -366
Taxes paid -497 -163 -989 -948
Change in working capital 13 -52 -408 -257
Cash flow from operating activities 1,815 2,428 8,679 9,690
INVESTING ACTIVITIES
CAPEX -1,286 -1,753 -4,609 -5,572
Cash flow after CAPEX 529 675 4,070 4,118
Shares and other financial assets -15 -1,560 -215 -1,563
Cash flow after investing activities 514 -885 3,855 2,555
48
Pro forma financial debt profile Sources of funding SEK billion
12.8
12.1
16.9
15.214.9
-2.5
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Revolving Credit Facility Russian bond Commercial paper
Swedish bond Norwegian bond Other financing
Put option Kazakhstan Cash Pro forma net debt
49
Debt maturity profile Gross debt SEK 16.6 billion (incl. unutilized SEK 27.3 billion)
Debt currency profile Gross debt SEK 16.6 billion
Debt maturity and currency profile
3.8
2.12.9 3.1
4.2
0.5
0
2
4
6
8
10
12
14
16
2013 2014 2015 2016 2017 2018<
Bonds Commercial papersOther bank loans Put option, fin.lease and otherUnutilized
4.6
5.7
2.2
2.5
1.50.1
SEK incl. FX swap RUB
EUR incl. FX swap NOK
KZT USD
50
* Fixing rate 31 Dec, 2012
Tele2 in Debt Capital Markets
Instrument Date of issue Maturity date Volume in MSEK*
RUB Bond 5yr 2011-06-24 2016-06-24 13,000 MRUB 2,791
RUB Bond 3yr 2012-04-13 2015-04-18 6,000 MRUB 1,288
RUB Bond 2yr 2012-02-09 2014-02-14 7,000 MRUB 1,503
NOK Bond 5yr 2012-02-20 2017-02-24 1,000 MNOK 1,167
NOK Bond 3yr 2012-02-20 2015-02-24 300 MNOK 350
SEK Bond 2012-05-08 2017-05-17 1,500 MSEK 1,500
SEK Bond 2012-05-08 2017-05-15 800 MSEK 800
SEK PP Bond 2012-09-27 2014-03-27 500 MSEK 500
SEK PP Bond 2012-12-06 2015-03-06 750 MSEK 750
SEK PP Bond 2013-01-03 3 months rolling 500 MSEK 500
SEK CP on-going within 1yr 2,390 MSEK 2,390
Total 13,540
51
Debt position and ratio
Pro forma net debt / EBITDA 12 m rollingSEK billion / Ratio
12.812.1
16.915.2 14.9
2.92.9
3.22.9 2.9
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Pro forma net debt Ordinary dividend, proposed/paid
Extraordinary dividend, proposed/paid Leverage net (net debt to EBITDA, pro forma)
52
Debt position and ratio incl. NL LTE
Pro forma net debt / EBITDA 12 m rollingSEK billion / Ratio
12.8 12.1
16.915.2 14.9
2.92.9
2.92.9
3.2
1.4
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Pro forma net debt Ordinary dividend (paid May 2012)
Extraordinary dividend (paid May 2012) Proposed ordinary dividend (to be paid May 2013)
NL LTE license (paid January 2013) Leverage net
Leverage gross (1.78)
53
Group financials Group EBITDA and
Group EBITDA margin SEK million
Group CAPEX (BS) and CAPEX/Sales SEK million
Group Net Sales SEK million
ROCE (Normalized) Percent
Group EBITDA margin
CAPEX/Sales
● Mobile
● Fixed telephony
● Fixed broadband
● Other operations
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
0
3,000
6,000
9,000
12,000
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
0.0%
7.5%
15.0%
22.5%
30.0%
0
500
1,000
1,500
2,000
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
19%
16% 16%
21%
17%
0%
5%
10%
15%
20%
25%
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
54
Sweden – Mobile External revenue excl. equipment sales and
Equipment sales SEK million
EBITDA SEK million
Expansion costs SEK million
Change year-on-year for Q4
• Year-on-year revenue growth excl.
equipment sales of 6%
• Year-on-year expansion costs increased by
SEK 122 million (33%)
0
500
1,000
1,500
2,000
2,500
3,000
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
-600
-500
-400
-300
-200
-100
0
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
0
200
400
600
800
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
55
Agenda
• About Q4 2012
• Financial review
• Concluding remarks
56
Concluding remarks
Continue to grow as an operator
Manage the shift from voice to data
Continue to migrate from prepaid to
postpaid
Invest in new growth initiatives
57
Q&A
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