TeliaSonera : Presentation Q4 2016

Q4

YEAR-END REPORT JANUARY - DECEMBER 2016

JOHAN DENNELIND, PRESIDENT & CEO

DELIVERING ON OUR AMBITIONS

WE REVISED UP AND SAID EBITDA IN LINE OR SLIGHTLY ABOVE 2015 WE DID +2.6%

WE SAID CAPEX IN THE UPPER RANGE OF SEK 14-15 BILLION WE REPORTED SEK 15 BILLION

AMBITION OF A DIVIDEND OF AT LEAST SEK 2 PER SHARE WE PROPOSE SEK 2

2

WEAKER Q4 IN LINE WITH OUR FULL YEAR EXPECTATIONS

• CONTINUING OPERATIONS

  Q4 2016 FY 2016

  S E R V I C E R E V E N U E G R O W T H

  Reported -5.0%

  Organic +0.6%

  Reported -1.9%

  Organic -0.4%

  E B I T D A * G R O W T H F R E E C A S H F L O W

  Reported -2.7%

  Organic -1.9%

  SEK 0.0 billion

  Reported +2.2%

  Organic +2.6%

  SEK 7.2 billion

  *Excluding non-recurring items

  3

  FULL YEAR 2016 AND Q4 IN BRIEF

  FULL YEAR 2016

  Q4 2016

  REFOCUSING TO THE

  NORDICS & BALTICS

  SOLID PERFORMANCE IN KEY MARKETS

  STRONG NORWAY GETTING READY FOR MORE

  SERVICE NEW

  REVENUE OPERATING

  GROWTH STRUCTURE

  TELIA

  CARRIER ENDING STRONG

  BETTER ALL TIME

  TREND IN HIGH FIBER

  EURASIA IN SWEDEN

  BEST NETWORK IN

  5 OF 7 MARKETS

  4

  STRONG TV DEVELOPMENT ACROSS THE FOOTPRINT

  TV SUBSCRIPTION BASE

  Continuing operations, in ´000

  TV ARPU DEVELOPMENT

  Local currency, FY 2016 vs. 2015

  +3.6%

  Sweden

  +11.2%

  Estonia

  +7.6%

  Sweden

  +11.2%

  Estonia

  +7.6%

  1,688

  Finland

  +7.2%

  Lithuania

  +5.2%

  Lithuania

  +5.2%

  Finland

  +7.2%

  Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

  • Subscription growth in 4 of 5 markets - improved proposition

  • Subscription base growth of 5% in Sweden and 8% in Lithuania

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• Solid ARPU development from

  • Price adjustments

  • Package optimization

  • Successful upsell

GROWING MOBILE BILLED REVENUES

MOBILE BILLED REVENUE GROWTH

Continuing operations, organic growth

MOBILE BILLED REVENUE GROWTH Q4

Organic growth, Q4 2016 y-o-y

2.0%

1.5%

Sweden

+2.0%

Norway

+0.9%

Sweden

+2.0%

Norway

+0.9%

+1.7%

1.0%

0.5%

0.0%

Finland

+5.2%

Continuing operations

+1.7%

Finland

+5.2%

Continuing operations

+1.7%

Q1 16 Q2 16 Q3 16 Q4 16

• Demand for data and upsell main drivers • Growth Q4 in 6 of 7 markets

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  REVENUE GROWTH WITH DIFFERENT MIX

  SERVICE REVENUES

  Organic growth, external service revenues

  Sweden Europe

  Continuing operations

  +1.2%

  +0.6%

  4.3%

  +0.3%

  -1.8%

  -1.9%

  Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

  Q4

  15

  Q4 Q4

  16 15

  Q4 Q4

  16 16

  Q4

  16

  • Growth in fiber and strong development in fixed

    broadband and TV revenues in Sweden

  • Positive mobile service revenue growth in 5 of 6 markets in Europe

  • Negative sales mix in Sweden from pressure on

    high margin fixed legacy revenues

  • Growth in Europe driven mainly by solid development in Norway

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  EBITDA

  Organic growth, excluding non-recurring items

  Sweden Europe Continuing operations

  SWEDEN ENDING THE YEAR WITH REVENUE GROWTH

  SERVICE REVENUES BY SEGMENT

  Organic growth, external service revenues

  B2C incl. fiber installation revenues B2C excl. fiber installation revenues

  SERVICE REVENUES B2B

  Organic growth, external service revenues

  SME/SoHo Large enterprises

  +0.5%

  B2C

  +2.4%

  +1.7%

  Q4 16

  Q4 16

  Q4 15 Q1 16 Q2 16 Q3 16 Q4 16

  -3.1%

  -4.8%

  B2B

• Stable growth in B2C amplified by fiber

• Better performance in B2B driven by less pressure on the large segment

• SME/SoHo remains slightly positive

• Improvement in large enterprises Q4 to some extent due to phasing

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