Telia (TELIA) Investor Update summary

Strategic priorities and organizational transformation

• A new value creation plan and change program focus on radical simplification, decentralization, and increased execution speed, aiming to make the organization more agile and accountable at the local level.

• The company will reduce central functions by about 3,000 employees, shifting resources and decision-making closer to customers, with expected annual savings of SEK 2.6 billion (SEK 2.3 billion OpEx, SEK 0.3 billion CapEx).

• Product and IT portfolio simplification, IT modernization, and innovation initiatives (notably in 5G, AI, and digital infrastructure) are key to reducing complexity and accelerating time to market.

• Decentralized operating model and increased accountability are designed to improve customer focus, execution, and performance culture.

• Emphasis on increasing customer satisfaction, efficiency, profitability, and service quality across all markets.

Financial targets, ambitions, and guidance

• Targets for 2025–2027 include 2% annual service revenue growth, 4% adjusted EBITDA CAGR, and at least SEK 10 billion in free cash flow by 2027.

• 2025 guidance: service revenue growth of about 2%, adjusted EBITDA growth of at least 5%, CapEx below SEK 14 billion, and free cash flow around SEK 8 billion.

• CapEx intensity is expected to decline, with disciplined capital allocation, focus on high-return projects, and portfolio optimization possibly resulting in more asset sales than acquisitions.

• Four-pronged value agenda: grow FCF per share, active portfolio management, balance sheet discipline, and progressive dividend policy.

• Operational free cash flow metrics will be discontinued from 2025, with all-in free cash flow becoming the primary cash flow metric.

Market position, operational outlook, and business focus

• Operates across Nordic and Baltic regions with SEK 89bn revenue in 2023 and 26 million subscriptions.

• Holds leading market positions, especially in Sweden, with strong brand and infrastructure assets.

• Sweden is in turnaround, with stabilization in B2B, strong B2C and wholesale growth, and diminishing copper headwinds; aims to shift from stable to stronger EBITDA growth, supported by 5G rollout and network modernization.

• Other markets (Finland, Norway, Lithuania, Estonia) focus on growth, margin expansion, digital leadership, and impactful ESG agendas, with specific strategies for fiber, 5G, and digital services.

• TV and media business is transitioning from linear to digital, targeting over SEK 1 billion in EBITDA by 2025 and focusing on profitability and content portfolio optimization.