interim report - telia company - telia company€¦ · comp non-rec items fx net fin taxes min int...
Post on 25-Sep-2020
5 Views
Preview:
TRANSCRIPT
1
¨
Interim ReportJanuary-March, 2013
Per-Arne Blomquist
President and CEO
1
Highlights first quarter 2013
2
• Improved margin and cash flow
– Maintained margin within Mobility Services
– Double-digit growth & high profitability in Eurasia
– Continued transition in Broadband Services
• New initiative launched to monetize on mobile data growth
• Focus on efficiency measures
• Continued progress within sustainability
2
¨
Positive EBITDA margin development
3
* Excl. non-recurring items
EBITDA margin*, 4 quarters rollingEBITDA margin*, 4 quarters rolling
25%
28%
30%
33%
35%
38%
40%
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
34.5%34.5%
EBITDA margin*
34.7%
EBITDA margin*
25%
28%
30%
33%
35%
38%
40%
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
34.7%34.7%34.5%
Billed revenues*, change y/y (%)Billed revenues*, change y/y (%)
Focus on billed revenues in Mobility
4
-6%
-4%
-2%
0%
2%
4%
6%
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
Mobility Services, excl. Spain
Q1 2013Volume
y/y**Revenue
y/y**
Voice 0% -13%
Messaging -10% -7%
Mobile data +80% +21%
Billed revenues -2.9%
* Stable FX rates ** Excluding Spain
3
¨
Changing our model to monetize on data growth
5
Get unlimited voice and text
messagesShare data
within certainbuckets
Connect up to 7 mobile devices
on One bill
Possibility to top-up
data
Data revenues increasing in Eurasia
• Higher data revenue accounts for one third of net sales growth
• Smartphone penetration has doubled in one year, but is still on low levels
• Data pricing is based on our experiences from the Nordics
6
Data revenues and share of net sales
0
100
200
300
400
500
600
700
800
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
Data revenues
Data revenues to net sales
11.3%11.3%
8.2%8.2%
SEK million
4
¨
Transition in Broadband Services
7
MMO
1,332
643
• Fast migration from traditional business to IP-based solutions
– Continued pressure on traditional fixed revenues highlights the need to cut costs
– The customer base grew for all IP-based services in the quarter
• Fiber roll-out key for success
– Further extension of our footprint necessary
• Focus on developing our TV offer
– TeliaSonera has now approached 600,000 subscriptions in Sweden
8
Narrowing balance between sales and OPEX
* In local currencies and excluding acquisitions and divestments
Net sales and addressable cost base*
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2007 2008 2009 2010 2011 2012 Q1 13
Net sales Addressable cost base
5
¨
Focus on implementing efficiency measures
9
• We aim to reduce our cost base by
SEK 2 billion* net during the coming
two years, as announced in late 2012
• Accumulated savings SEK 0.3 billion,
of which SEK 0.1 billion was recorded
in Q1 2013
• In 2013 1,800 employees in the Nordics
and Baltics will be affected**
* Excluding Mobility Spain ** To be completed by early 2014 at the latest
Further progress within sustainability
10
• Focus on privacy, freedom of expression and anti-corruption
• Guiding principles on telecommunication, freedom of expression and privacy signed
• Collaboration with the Global Network Initiative
• Extensive sustainability training initiated and new anti-corruption policy adopted
• TeliaSonera signed the United Nation’s Global Compact
6
¨
Summary
• Improved margin and cash flow
• Stable margin in Mobility, strong performance in Eurasia, challenges in Broadband
• New initiative launched to monetize on mobile data growth
• Focus on efficiency measures
• Continued progress within sustainability
11
Interim ReportJanuary-March, 2013
Christian Luiga
CFO
12
7
¨
Improved margin and stronger cash flow
• Net sales SEK 24,542 million (25,693)
– Decrease of 0.9% in local currencies
• EBITDA* SEK 8,509 million (8,852)
– Decrease of 0.5% in local currencies
• EBITDA margin* 34.7% (34.5)
• Earnings per share SEK 0.95 (0.95)
• Free cash flow SEK 2,414 million (2,193)
* Excluding non-recurring items
13
Net sales and EBITDA*growthy-o-y
Currency headwind in the quarter
14
• All of our major currencies have lost 3-8% vs. SEK compared to a year ago
• Negative impact on Net sales SEK 0.8 billion y-o-y
• Negative impact on EBITDA* SEK 0.3 billion y-o-y
-5%
-4%
-3%
-2%
-1%
0%Net sales EBITDA*
Organic M&A FX
* Excl. non-recurring items
8
¨
Slightly slower growth on a sequential basis
15
*In local currencies and excl. acquisitions and divestments
Net sales split and Net sales growth* y-o-y
Q4 2011 Q4 2012 Q1 2012 Q1 2013
Mobility Broadband Eurasia
+16.3%+16.3%
+1.3%+1.3%
-2.7%-2.7%
+13.6%+13.6%
-2.7%-2.7%
+1.8%-0.9%
-5.9%-5.9%
Mobility Services impacted by lower interconnect
16
Net sales, Mobility Services
Q1 2012 Billedrevenues
Inter-connect
Equipment Other FX Q1 2013
11.9
12.5
SEK billion
-0.3-0.5
-0.10.0
+0.3
• Net sales in Mobility Services declined by 2.7% y-o-y in local currencies
• Reduced interconnect revenues affected sales by around 4% y-o-y
9
¨
Mobile data supports growth in Eurasia
17
* In local currencies and excl. acquisitions and divestments
Net sales growth* - Eurasia
75.3%
29.3%
7.3%
6.6%
4.0%
1.6%
-0.7%
Ucell
Ncell
Moldcell
Tcell
Kcell
Geocell
Azercell
• Overall revenue growth 13.6%
• Data revenue increased 56%, accounting for one third of total net sales growth
• Positive trend in all units, except Azercell due to lower interconnect
Pressure on revenues in Broadband Services
• International Carrier affected by reduced volumes of low margin voice and interconnect
• Fiber roll-out impacted by adverse cold weather
• Weaker traffic volumes in traditional fixed
18
*Net sales growth in local currencies and excl. acquisitions and divestments
Broadband Services – net sales growth* y-o-y
-5.9%-5.9%
-0.3%-0.3%
-2.7%-2.7%
-1.0%-1.0%
-2.8%-2.8%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
10
¨
Slightly higher gross margin
Gross margin*Gross margin*
58
59
60
61
62
63
64
65
66
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Gross margin, quarter
Gross margin, 4 quarter rolling
%
19
• Lower interconnect
• Reduced low margin equipment sales
• Higher contribution from Eurasia
* Excl. non-recurring items
• Mix shift from classic to IP based revenues and International Carrier
• Net sales -5.9% and addressable cost base +1.9%**
Improved EBITDA margin in the quarter
20
• Stable EBITDA* margin
• Net sales -2.7% and addressable cost base -7.1%**
• Positive margin development helped by country mix and cost control
• Net sales +13.6% and addressable cost base +8.2%**
Mobility Services
Q1 12 Q1 13
29.2% 29.1%
EBITDA* margin
Broadband Services
Q1 12 Q1 13
31.3% 29.9%
EBITDA* margin
Eurasia
Q1 12 Q1 13
50.8% 53.0%
EBITDA* margin
* Excl. non-recurring items, **In local currencies and excl. acquisitions and divestments
11
¨
Lowering the cost base by SEK 2 billion
21
• Savings of SEK 0.2 billion recorded in Q4 2012 and additional SEK 0.1 billion in Q1 2013
• In total, 1,800 employees will be affected
• Close to 1,000 employees noticed y-t-d, of which the majority in April
• Restructuring costs of SEK 1.7 billion expected in 2013
* Excluding Mobility Spain and NextGenTel, stable FX
Addressable cost base target*Addressable cost base target*
2012 2013e 2014e
SEK billion
26.0
25.0
26.8
Stable Earnings per share
22
EPS, SEK
Q12012
Operat. Asscomp
Non-rec
items
FX Net fin Taxes Min int Q12013
0.950.95
-0.03
+0.02
0.00
-0.05
+0.07
-0.01
0.00
• EPS positively impacted by associated companies and net financials, but negative FX effect
12
¨
CAPEX splitCAPEX split
CAPEX-to-sales ratio of 10.4% in Q1 2013
CAPEX-to-sales ratio*CAPEX-to-sales ratio*
23
• CAPEX-to-sales excl. license and spectrum fees was 10.4%
• CAPEX amounted to SEK 2.7 billion (3.2) whereof SEK 0.2 billion (0.0) for licenses and spectrum fees
* Excl. license and spectrum fees
35%
29%
31%
5%
Mobility
Broadband
Eurasia
Other
0%
5%
10%
15%
20%
Q1 12 Q1 13 2011 2012 2013e
14%14%
10.4%10.4%
Free Cash Flow improved in Q1
24
* Excl. non-recurring items
Free cash flow Q1 2013
2.42.22.2
SEK billionSEK billion
+0.6+0.6 0.00.0
-0.3-0.3-0.3-0.3
-0.2-0.2
Free cash flow Q1 2013
Q1 2012 EBITDA* Interestpaid
Incometaxespaid
Changein
workingcapital
CashCAPEX
Other Q1 2013
2.42.2
SEK billion
+0.6 0.0
-0.3-0.3
-0.2
• Free cash flow improved to SEK 2.4 billion (2.2), due to lower cash CAPEX and lower income taxes paid+0.4
13
¨
Net debt and Net debt / EBITDA*Net debt and Net debt / EBITDA*
Net debt to EBITDA within our target range
25
* 4 quarters rolling
0.0
0.5
1.0
1.5
2.0
2.5
0
15
30
45
60
75
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
SEK billion
• Gross debt of SEK 83.6 billion and Net debt of SEK 55.3 billion
• Net debt to EBITDA of 1.54x (1.89x adjusted for dividend paid in early Q2)
• Target range between 1.5-2.0x
1.54
26
Outlook for 2013 – Unchanged
Outlook 3M 2013
Net sales* Flat -0.9%
EBITDA margin**Increase slightly
(34.5% 2012)34.7%
CAPEX-to-sales ratio***
Around 14% 11.0%
* In local currencies and excl. acquisitions and divestments ** Excl. non-recurring items *** Excl. license and spectrum fees
14
¨
Q&A
27
Net debt Net debt
Net debt development
28
Q4 2012 Cash flowfrom
operatingactivities
CashCAPEX
Otherinvestingactivities
Minoritydividends
Other Q1 2013
55.359.4
SEK billion
0.0
-3.0-4.8
+2.4+1.3
• Gross debt decreased to SEK 83.6 billion (91.6)
• Net debt was SEK 55.3 billion (59.4)
15
¨
Debt Maturing next 12 months – March 31, 2013
Debt Portfolio Maturity Schedule – 2013 and onwards
Debt maturity scheduleMMO
0
1
2
3
4
5
6
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
0
2
4
6
8
10
12
14
16
18
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043
SEK billion
SEK billion
29
Debt per Q1 2013
• Gross debt SEK 83.6 bn
• Net debt SEK 55.3 bn
• Net debt/EBITDA 1.54x
30
Group result Q1 2013
SEK million1Q
2013Q1
2012Change
%
Net sales 24,542 25,693 -4.5
COGS 9,082 9,598 -5.4
Gross margin, % 63.0 62.6
OPEX 6,989 7,348 -4.9
EBITDA* 8,509 8,852 -3.9
Margin, % 34.7 34.5
Depreciation, amortization 3,205 3,216 -0.3
Income from associated companies
1,323 1,246 6.2
EBIT* 6,628 6,882 -3.7
* Excl. non-recurring items
16
¨
31
Group result Q1 2013
SEK millionQ1
2013Q1
2012Change
%
EBIT* 6,628 6,882 -3.7
Non-recurring items -139 -114 -21.9
EBIT 6,489 6,768 -4.1
Financial net -839 -1,140 -26.4
Tax -1,151 -1,113 -3.4
Net income 4,499 4,515 -0.4
Owners of the parent 4,108 4,122 -0.3
Non-controlling interest 391 393 -0.5
EPS, SEK 0.95 0.95 -
CAPEX 2,719 3,175 -14.4
Free cash flow 2,414 2,193 10.1
* Excl. non-recurring items
32
Organic revenue growth Q1 2013
Revenue growth (%)Q1 2013
Reportedgrowth
of whichcurrency
of whichacquisitions
and disposals
of which organic
Mobility Services -5.1 -2.4 - -2.7
Broadband Services -8.3 -0.8 -1.6 -5.9
Eurasia 5.4 -8.8 0.6 13.6
The Group -4.5 -3.1 -0.5 -0.9
17
¨
33
Statement of cash flows Q1 2013
SEK million Q1 2013 Q1 2012 Diff
EBITDA excluding non-recurring items 8,509 8,852 -343
Dividends received from ass companies 0 0 -
Interest paid (net) -1,350 -1,090 -260
Income taxes paid -561 -931 370
Payment of restructuring provisions -224 -180 -44
Diff between paid/recorded pensions 58 -9 67
Changes in working cap and other items -1,598 -1,384 -214
Cash flow from operating activities 4,834 5,258 -424
Cash CAPEX -2,420 -3,065 645
Free cash flow 2,414 2,193 221
34
Financial key ratios
Mar 31, 2013 Dec 31, 2012
Return on equity* 21.5% 20.5%
Return on capital employed* 15.4% 14.9%
Equity/assets ratio 39.1% 38.2%
Net debt/equity ratio 57.3% 61.4%
Net Debt/EBITDA rate* multiple 1.54x 1.64x
Net Debt/assets ratio 22.4% 23.5%
* Rolling 12 months
18
¨
Liquidity position TeliaSonera Group
Committed bank lines Maturity Size Amount undrawn
Syndicated revolving credit facility
Dec 2017 EUR 1 billion EUR 1 billion
Bilateral credit facility Jun 2013 SEK 1.4 billion SEK 1.4 billion
Cash and cash equivalents, less blocked funds approx. SEK 23.4 billion
March 31, 2013
35
TeliaSonera AB long-term ratings migration history 2002-to-today
TeliaSonera AB credit ratings (A3/A-)
0
1
2
3
4
5
Q1-02 Q4-04 Q4-07 Q4-08 Q4-09 Q4-10 Q4-11 Q4- 12
AAAA-A+AA-
Moody’s (A3/P-2)
• January 8, 2003, lowered long-termdebt rating to A2
• November 1, 2006, outlook changed to Negative
• October 30, 2007, lowered long- and short-term debt rating to A3 and P-2respectively
• May 4, 2012, Outlook changed from Negative to Stable.
• January 8, 2003, lowered long-termdebt rating to A2
• November 1, 2006, outlook changed to Negative
• October 30, 2007, lowered long- and short-term debt rating to A3 and P-2respectively
• May 4, 2012, Outlook changed from Negative to Stable.
Moody’s (A3/P-2)
• January 8, 2003, lowered long-termdebt rating to A2
• November 1, 2006, outlook changed to Negative
• October 30, 2007, lowered long- and short-term debt rating to A3 and P-2respectively
• May 4, 2012, Outlook changed from Negative to Stable.
Standard & Poor’s (A-/A-2)
• February 5, 2003, lowered long-term debt rating to A
• October 28, 2005, lowered long-term debt rating to A- and short-term debt rating to A-2
• July 2012, debt ratings confirmedOutlook: Stable
• February 5, 2003, lowered long-term debt rating to A
• October 28, 2005, lowered long-term debt rating to A- and short-term debt rating to A-2
• July 2012, debt ratings confirmedOutlook: Stable
Standard & Poor’s (A-/A-2)
• February 5, 2003, lowered long-term debt rating to A
• October 28, 2005, lowered long-term debt rating to A- and short-term debt rating to A-2
• July 2012, debt ratings confirmedOutlook: Stable
36
19
¨
37
Dividend policy
• The company shall target a solid investment grade
long-term credit rating (A- to BBB+) to secure the
company’s strategically important financial flexibility
for investments in future growth, both organically
and by acquisitions
• The ordinary dividend shall be at least 50% of net
income attributable to owners of the parent company
• Excess capital shall be returned to shareholders,
after the Board of Directors has taken into
consideration the company’s cash at hand,
cash flow projections and investment plans
in a medium term perspective, as well as
capital market conditions
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.
38
20
¨
39
top related