Q2 2007FINANCIAL REPORT
Lars-Johan JarnheimerPresident and CEO
UPDATE ON THE STRATEGIC REVIEW
2006 22 Countries
Mobile/MVNO in14 countries
Broadband in 12countries
Fixed in 15countries
Disposals/withdrawals(resale based) France fixed and
broadband Denmark Portugal Hungary Alpha and C3
H1 2007 18 Countries
Mobile/MVNO in13 countries
Broadband in 10countries
Fixed in 12countries
FINANCIAL HURDLES
We have set a minimum EBITDA hurdle of 20percent that each of Tele2’s geographies shouldmeet or exceed in the medium term
SEK MILLION H1-07 H1 -06 Q2 -07 Q2 -06
Continuing operationsOperating revenue 25,947 24,629 13,110 12,386Net customer intake (‘000) 663 1251 382 634EBITDA 3,230 2,458 1,737 1,237
TELE2: Q2 2007 RESULTS
• Mobile revenues in Q2 2007 increased by 25.5 percent to SEK5.8 billion
• Solid broadband intake during Q2 2007, adding a total of221,000 new broadband customers
• Fixed telephony EBITDA margin at 12 (9) percent in Q2 2007
All numbers including discontinued operations
Revenue distribution H1 -07
Mobile telephony
Fixed telephony (resale & dial-up)
Broadband (resale, direct & LLUB)
Revenue distribution H1 -06
Mobile telephony
Fixed telephony (resale & dial-up)
Broadband (resale, direct & LLUB)
CONTINUED SHIFT TOWARDSINFRASTRUCTURE BASED SERVICES
Sales - Q1 2007
42%
19%
39%
Sales - Q1 2006
35%
14%
51%
44%
19%
37%49%
14%
37%
EBITDA CONTRIBUTION PER SEGMENT
-1 000
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
H1 -07 H1 -06
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
(MSEK)
SEK MILLION H1-07 H1 -06 Q2 -07 Q2 -06
Mobile telephonyOperating revenue 11,045 8,682 5,826 4,644Net customer intake (‘000) 1,678 1,895 931 986EBITDA 2,489 1,699 1,401 953
CONTINUED STRONG PERFORMANCEIN MOBILE TELEPHONY
• Mobile revenues in Q2 2007 increased by 25.5 percent to SEK5.8 billion
• Continued excellent performance in Russian mobile operationswith EBITDA margin of 33 percent in Q2 2007
• Improved development in MVNO.• Clean up of customer base in the Nordic market area by
759,000 in Q2 2007
STRONG BROADBAND INTAKE
• Robust broadband intake during Q2 2007,adding a total of 221,000 new broadbandcustomers
• Southern Europe has turned the corner whenit comes to operational performance
SEK MILLION H1-07 H1 -06 Q2 -07 Q2 -06
Broadband resale, DA/LLUBOperating revenue 4,736 3,299 2,460 1,697Net customer intake (‘000) 475 273 221 129EBITDA -672 -580 -322 -274
STABLE MARGIN – INCREASEDCOMPETITION
• Fixed telephony EBITDA margin 12 (9) percent in Q22007
• Continued high level of competition from primarily mobileoperators
– Larger net customer outflow– Stronger ARPU decline than expected
• Fixed line operations a valuable asset– Strive to maximize value through an extremely cost-
conscious regime– Broadband cross-selling
SEK MILLION H1-07 H1 -06 Q2 -07 Q2 -06
Fixed telephony resaleOperating revenue 9,119 11,558 4,323 5,541Net customer intake (‘000) -1,490 -917 -770 -481EBITDA 1,185 1,136 536 474
Q2 2007 SUMMARIZED
• Good development in therealignment process
• We have implemented aminimum EBITDA hurdle of 20percent that each of Tele2’sgeographies should meet orexceed in the medium term
• Strong operationaldevelopment in core operations
Operating revenue*Net intake (‘000)
EBITDA*
TELE2: CONTINUED OPERATIONS
25,947
6633,230
24,629
1,2512,458
H1 -07 H1 -06MSEK
*Excluding non-recurring items
13,110
3821,737
12,386
6341,237
Q2 -07 Q2 -06
Q2 2007FINANCIAL REPORT
Lars NilssonCFO
FINANCIAL OVERVIEW FOR Q2 2007 –CONTINUING OPERATIONS
CAPEX (MSEK)
Net Intake (‘000)
EBITDA (MSEK)
Revenues (MSEK)
Diff Q2 -06Q2 -07H1 -07 Diff H1 -06
EBITDA (MSEK)
Revenues (MSEK)
Diff Q2 -06Q2 -07H1 -07 Diff H1 -06Excluding disposals*
*Alpha, C3, Datametrix (NO), Denmark, Portugal, Ungern and UNI 2 (DK)
25,947
3,230
2,516
663
5,3%
31,4%
-3,0%
-47,0%
13,110
1,737
1,335
382
5,8%
40,4%
-5,7%
-39,7%
24,268
3,128
7,4%
24,7%
12,380
1,691
8,3%
34,7%
24,268 7,4% 12,380
OPERATING REVENUE PER SEGMENT
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
(MSEK)
EBITDA AND NET INTAKE PER SEGMENT
Net Intake
-1 000
-500
0
500
1 000
1 500
2 000
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
('000)EBITDA
-1 000
-500
0
500
1 000
1 500
2 000
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
(MSEK)
TELE2 MOBILESales
0
1 000
2 000
3 000
4 000
5 000
6 000
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
(MSEK) EBITDA vs Net Intake
0
200
400
600
800
1 000
1 200
1 400
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
0
200
400
600
800
1 000
1 200
1 400
(MSEK)'000
TELE2 RUSSIA
• Net intake of 839,000 customers to a total of 7,9 million customers
• ARPU of 56 SEK in Q2 2007 compared to 44 SEK in Q2 2006
• EBITDA margin 33 (13) percent
Sales
0
200
400
600
800
1000
1200
1400
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
(MSEK)EBITDA vs Net Intake
0
50
100
150
200
250
300
350
400
450
500
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
0
100
200
300
400
500
600
700
800
900
1000
(MSEK) '000
TELE2 BALTIC
Sales
0
200
400
600
800
1000
1200
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
(MSEK) EBITDA vs Net Intake
0
50
100
150
200
250
300
350
400
450
500
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
0
20
40
60
80
100
120
(MSEK
)'000
SWEDEN MOBILE
• EBITDA-margin still affected by higher costs from adding post-paid subscribers• Sweden adding 46,000 customers in Q2 2007
Sales
1550
1600
1650
1700
1750
1800
1850
1900
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
(MSEK) EBITDA vs Net Intake
0
100
200
300
400
500
600
700
800
900
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
-20
-10
0
10
20
30
40
50
(MSEK) '000
NET DEBTNet Debt and Net Debt to EBITDA
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
0
0,5
1
1,5
2
2,5
3
(MSEK)
CAPEX, depreciation and amortization
Capex
0
200
400
600
800
1000
1200
1400
1600
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
(MSEK) Depreciation and Amortization
0
200
400
600
800
1000
1200
1400
1600
Q2 -06 Q3 -06 Q4 -06 Q1 -07 Q2 -07
Mobile telephony Fixed telephony (resale & dial-up) Broadband (resale, direct & LLUB)
(MSEK)
COMMENTS ON INCREASED TAX
• Tele2 Germany changed tax rate from 40% to 30%, which had animpact of -193 MSEK
• Increased profits in Russia had an impact of -53 MSEK
• Divestment of operations in C3; revaluate tax-loss-carry-forwards
QUESTIONS & ANSWERS
ContactsLars-Johan JarnheimerTelephone: + 46 (0)8 5626 4000President and CEO, Tele2 AB
Lars NilssonTelephone:+46 (0)8 5626 4000CFO, Tele2 AB
Lars TorstenssonTelephone: + 46 (0) 702 73 48 79IR Director, Tele2 AB
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