Telenor - Fourth Quarter 2002

Transcription

1 Telenor - Fourth Quarter

2 Group Overview Jon Fredrik Baksaas CEO

3 : Streamlining operations A challenging year for the industry Write downs of book values Successful implementation of Delta 4 Improved operational cash flow New business structure to improve performance Norway Stronger domestic focus Business Solutions Restructured Plus Broadcast pure play TV-distribution Basis for profitable organic growth in Sweden Executed our strategy to focus the mobile portfolio Gained majority in Pannon (Hungary) and Kyivstar (Ukraine) Exit of Extel and StavTeleSot in Russia Strong growth in future cash flow 3

4 Delta 4 progressing according to plan Delta 4 Focus areas Network structure and operations Information systems Support services Customer front Accounting & Finance NOK 1.1 Bn Mn cost savings Work force reductions in of more than 1500 Target of NOK 1.3 Bn in cost savings for 2003 Ambition of NOK 4 Bn in cost savings maintained by 2004 Purchasing 4

5 Reporting Structure 2003 GROUP Mobile Fixed Broadcast Other 5

6 Reported P&L Revenue EBITDA EBIT (2 002) (221) Profit before Tax (5 336) 708 (5 027) Net Profit (4 491) 867 (4 213)

7 Balance sheet Strong key parameters 31. Dec 30. Sept Net Debt (NOK Bn) Equity Ratio (%) Net Debt / Equity (%) Net Debt / EBITDA* (x) % 72% % 64% 2.3 * EBITDA excludes gains and losses last 4 quarters 7 7

8 Mobile Financial highlights Revenue growth of 60% from to NOK 5,666 Mn EBITDA of NOK 2,084 Mn and CAPEX of NOK 1,399 Mn Revenue / EBITDA-Margin Write downs of NOK 4.4 Bn Consolidated NOK 2.2 Bn 37 % Associated NOK 2.2 Bn EBIT of NOK 1,2 bn 37 % 35 % 28 % 35 % 40 % 8

9 Networks Stable revenues and market share Revenue / EBITDA-Margin Subscription up and traffic down One-offs of NOK 155 Mn reduce EBITDA by 3.7 %-points EBITDA of NOK 1,376 Mn Capex of NOK 559 Mn Reported EBIT NOK 560 Mn 35 % 36 % 34 % 34 % 37 % 33 % Revenue and EBITDA excludes gains and losses 9

10 Plus Broadcast positive while ADSL growth hurts margins Solid performance by Canal Digital EBITDA positive for the full year Revenue / EBITDA-Margin Lower EBITDA for Internet/ADSL new ADSL customers in Stopped losses in Swedish retail operations NOK 75 Mn in one-offs reduce EBITDA by 5%-points From 2003: Pure TV play 8 % 4 % -3 % 5 % 8 % 0 % Revenue and EBITDA excludes gains and losses 10

11 Business Solutions Restructured Strengthened Nordic focus Revenues/EBITDA-margin Acquired Utfors Dec Exit Hungary and Austria EBITDA of NOK 71 Mn, CAPEX NOK EBIT of NOK 306 Mn including write downs of NOK 90 Mn -3 % -1 % 2 % -2 % 4 % -30 % Revenue and EBITDA excludes gains and losses 11

12 Telenor NetCom Telia Mobile Tele 2 Vodafone TDC Sonofon Sonera Radiolinja Vodafone T-Mobile UK Orange SFR T-Mobile Vodafone Sun E-Plus O Regulatory issues Delay of 3G roll-out Service Provider agreement (Sense) SMS (Teletopia) Interconnect termination fee SMS prices (Euro cent)* NOR SWE DEN FIN UK FRA GER Swisscom Cosmote Termination fees (Euro cent) Telenor NetCom LuxGSM Telia Mobilkom T-Mobil TDC Proximus Eircell Orange KPN BTCellnet Omnitel Telefonica Telecel

13 Group Annual Cash Flow Development Adjusted EBITDA / CAPEX High cash flow in Increased EBITDA in 2003 Stable CAPEX in 2003 EBITDA 11,6 10,4 9,6 9,5 14,5 CAPEX 9,

14 14

15 Telenor Mobile Arve Johansen CEO

16 Mobile Annual Financial Development (NOK mill) Revenues / EBITDA % EBITDA / CAPEX EBIT EBITDA CAPEX % 28 % 32 % 37 %

17 Telenor Mobile s Portfolio * Telenor s indirect ownership in DTAC = 40,3%. (Direct ownership share in DTAC: - Telenor: 30%, - UCOM: 40,3 %) 17

18 Mobile Subscribers (in millions) Total Consolidated Total Pro Rata 100% figures (in all companies) 23,4 25,2 20,9 14,7 16,6 18,5 6,6 7,2 9,3 6,1 6,5 10,4 11,6 8,6 9,1 12,4 3,7 3,8 18

19 Mobile Growth NOK Revenues 02 vs. 01 Local Currency EBITDA Margin mnorway 7% - 37,3 % 34,3% Pannon 11% 14% 33,8 % 30,5% DiGi 5% 27% 43,5 % 34,3% Grameen 7% 33% 45,5 % 47,5% Kyivstar 22% 46% 55,1 % 31,0% 19

20 Subscribers ARPU MoU (AMPU) Figures represent mnorway 20

21 Revenues / EBITDA % EBITDA / CAPEX EBIT EBITDA CAPEX % 34 % 40 % 40 % 44 % 38 % Figures represent mnorway, in NOK millions 21

22 Subscribers ARPU MoU (AMPU) NOK HUF Subscriber figures based on 3 months churn for pre-paid 22

23 Revenues / EBITDA % EBITDA / CAPEX EBIT EBITDA CAPEX % 31 % 37 % 38 % 34 % 34 % Figures in NOK millions 23

24 Subscribers ARPU MoU (AMPU) NOK MYR Subscriber figures based on 3 months churn for pre-paid 24

25 Revenues / EBITDA % EBITDA / CAPEX EBIT EBITDA CAPEX % % 34 % 37 % 35 % 34 % figures are not audited, and calculated by DiGi due to change in Financial Year Figures in NOK millions 25

26 Subscribers ARPU (NOK) MoU (AMPU) NOK USD

27 Revenues / EBITDA % EBITDA / CAPEX EBIT EBITDA CAPEX % 61 % 62 % 55 % % 31 %

28 Subscribers ARPU MoU (AMPU)* NOK BDT * Minutes of Use include both incoming and outgoing, including non-revenue generated incoming minutes. Figures can not be compared to other companies in portfolio 28

29 Revenues / EBITDA % EBITDA / CAPEX EBIT EBITDA CAPEX % 47 % 46 % 45 % 54 % 46 % Figures in NOK millions 29

30 Subscribers Revenues / EBITDA % EBITDA % % 29 % 28 % 30 % 29 % Subscriber figures published by the Danish National Telecom Agency (excludes service providers and based on 12 month pre-paid churn). & - subscriber figures have not been published and have been submitted by Sonofon Figures are based on actual company figures Figures in NOK Millions 30

31 Group Financial Overview Torstein Moland CFO

32 Key messages Adjusted Group EBITDA of NOK 14.5 Bn in Group CAPEX of NOK 8.9 Bn in Write downs of NOK 6.6 Bn in Delta 4 On schedule 2003 Strong growth in cash flow 32

33 Write Downs Consolidated - Mobile (Mainly Digi) - Business Solutions - EDB BP -Other Total Consolidated Associated - Sonofon -DTAC/UCOM -Oniway -Other Total Associated Financial Items

34 Group - Adjusted P&L (NOK Mn) Revenue EBITDA EBIT Assoc. comp 25 (363) (205) (1 746) Profit Before Tax 827 (31) (396) 34

35 Reported P&L (NOK Mn) Revenue EBITDA EBIT (2 002) (221) Associated Co. (2 146) (3 665) (2 450) Net Finance (1 188) (39) (2 356) (1 159) Profit before Tax (5 336) 708 (5 027) Net Income (4 491) 867 (4 213) * Proforma 35

36 Reported EBITDA vs. Consensus EBITDA Reported Consensus Diff Mobile Networks (168) Plus Business Sol 46 (29) 72 EDB Other Group Functions (214) (113) (101) Eliminations 83 (55) 138 Total

37 CAPEX/SALES Group (NOK Bn) Fixed Line/Domestic Mobile Fixed Mobile 10,4 11,6 22 % 22 % 8,9 29 % 29 % 16 % 17 % 11 % 18 % 7 %

38 Balance Sheet 31 Dec 30 Sept 31 Dec Fixed Assets Current Assets Total Assets Equity & Minorities Interest-bearing debt Non interest-bearing debt Total Equity and debt

39 Outlook 2003 Revenues 7-10% revenue growth EBITDA Increased margins EBIT - Strong underlying growth Capex - Approximately NOK 9 Bn 39

40 Telenor - Fourth Quarter

41 Appendix

42 Quarterly Figures (NOK mill) SMS & Content mnorway Pannon GSM DiGi Kyivstar 15% of sales in 10% of sales in 10% of sales in 4% of sales in SMS & Content Revenue figures have been adjusted and now include revenue from terminated SMS 42

43 Telenor Mobile International Associates Total per Company - (100% figures in NOK millions according to local GAAP) Subscriptions Revenues YTD EBITDA YTD 1) Net debt 2) September 30 %-change September 30 %-change September 30 %-change September / 2000/ 2000/ Nordic Region Sonofon 4) % % % Europe Connect Austria % % % Cosmote % % % Pro Monte % % % -53 Russia/Ukraine VimpelCom % % % StavTeleSot % % % 63 Southeast Asia DTAC % % % UCOM 3) % % 941 1) EBITDA consists of earnings before interest, tax, depreciation and amortization excluding gains/(losses) from sales of fixed assets and operations 2) Net debt consists of long term and short term interest-bearing debt minus cash. Closing exchange rates used 3) UCOM classified according to NGAAP. Figures for TAC are not included 4) Subscriber figures published by the Danish National Telecom Agency (excluding service providers) 43