Interim Report January - June 2002

Interim Report January-June 2002 Telia ab (publ), SE-123 86 Farsta, Corp. Reg. No. 556103-4249, Registered office: Stockholm Q2 in Brief · Group net sales increased 1% to msek 14,346 (14,203) - Core business +6 percent · Underlying ebitda improved 19% to msek 3,587 (3,014) - Core business +12 percent · The margin increased to 25% (21%) · Operating income totaled msek 119 (988) and was burdened with restructuring costs of msek 482 · Capital expenditure declined to msek 2,091 (3,666) and operating cash flow was msek 1,472 · The EU approved the merger with Sonera on July 10 · Review of Earnings Apr- Apr- Jan- Jan- Jan- msek Jun Jun Jun Jun Dec 2002 2001 2002 2001 2001 Net sales 14,346 14,203 28,231 27,795 57,196 Change in net sales (%) 1.0 7.8 1.6 6.8 5.8 Underlying ebitda 3,587 3,014 6,968 6,362 12,915 Underlying ebitda margin (%) 25.0 21.2 24.7 22.9 22.6 Depreciation, amortization and -3,004 -2,505 -5,711 -4,915 - write-downs 13,975 Items not reflecting -827 271 -804 301 384 underlying business operations Income from associated 363 208 375 51 6,136 companies Operating income 119 988 828 1,799 5,460 Income after financial items -78 909 457 1,411 4,808 Net income 30 250 157 541 1,869 Basic and diluted earnings per 0.01 0.08 0.05 0.18 0.62 share (sek) Operating cash flow 1,472 3,158 607 132 14,048 Investments 2,637 5,954 4,690 9,613 20,735 of which capex 2,091 3,666 4,113 7,234 17,713 Number of employees 16,561 22,468 16,561 22,468 17,149 Comments from Anders Igel, President and CEO - Telia stands strong in today's turbulent market situation. Telia's focus on its core business and the ongoing efficiency-enhancing measures are starting to yield results. We will now sharpen our customer- and earnings-focus to make Telia better equipped to employ our strength in the home market. - We are now seeing an increase in mobile usage in all the Nordic markets and we have strengthened our market position in broadband, particularly in the business segment. - The earnings trend within the international carrier business is not satisfactory. That is why we now have a comprehensive review underway in order to determine the actions required to attain a positive cash flow position as soon as possible. - It is highly gratifying that the planned merger with Sonera was approved by the eu. This means that we can now proceed with the preparatory work in earnest. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/07/25/20020725BIT00130/wkr0001.doc The full report http://www.waymaker.net/bitonline/2002/07/25/20020725BIT00130/wkr0002.pdf The full report