Shaping a new generation telco – new savings and growth initiatives combined with changed dividend policy


Today TeliaSonera will take the stage for the 2014 Capital Markets Day. The
presentation focuses on transforming TeliaSonera to reach the full potential,
including new growth and savings inititatives. The existing dividend policy is
replaced by a target to distribute an annual dividend of at least SEK 3 per
share for the fiscal years 2014 and 2015.
“Today we announce that TeliaSonera will invest to grow in our core business in
the Nordics and Baltics, in taking Eurasia to the next level on the back of
increased demand for mobile internet, and in areas that complement and
strengthens our core business. In addition we will invest to save, increasing
simplicity and thereby increase our overall competitiveness. These initiatives
aim to defend or increase our market shares and reach sustainable cost savings,
without compromising on dividend to shareholders,” said Johan Dennelind,
president and CEO of TeliaSonera.

Continuous capex in TeliaSonera’s core operations is expected to be around 15
percent of service revenues the next two years. In addition, TeliaSonera will
invest total accumulated capex of up to SEK 6–7 billion in 2015–2016 in two main
areas:

1)    In order to increase competitiveness and reduce cost, accumulated capex of
SEK 2 billion will be spent on business transformation in 2015–2016 to reach net
savings with a yearly run rate of SEK 2 billion during 2017.

2)    Accumulated capex of up to SEK 4–5 billion will be spent on additional
grow initiatives in 2015–2016, primarily accelerating the fiber roll-out in
Sweden, new B2B offerings, as well as upgrading data networks in Eurasia. In
Sweden, the aim is to increase the number of households reached by TeliaSonera’s
fiber services from 1.1 million to 1.9 million between 2014 and 2018.

The board of directors have decided that the dividend policy is replaced by a
target to distribute an annual dividend of at least SEK 3 per share for the
fiscal years 2014 and 2015. The company shall continue to target a solid
investment grade long-term credit rating (A- to BBB+). The board of directors
final dividend proposal will be announced in the Year-end Report 2014 which will
be released on January 29, 2015.

TeliaSonera reiterates its guidance for the full year 2014: “Net sales in local
currencies, excluding acquisitions and disposals, are expected to be slightly
below the level in 2013. Currency fluctuations may have a material impact on
reported figures in Swedish krona. The EBITDA margin, excluding non-recurring
items, is expected to be around the same level as in 2013. The CAPEX-to-sales
ratio is expected to be approximately 15 percent, excluding license and spectrum
fees.”
TeliaSonera AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The
information was submitted for publication at 08:00 a.m. CET on September 30,
2014.

For more information, please contact the TeliaSonera press office 46 771 77 58
30, press@teliasonera.com or visit TeliaSonera
Newsroom (http://www.teliasonera.com/en/newsroom). Also follow us on Twitter
@TLSN_Media (https://twitter.com/TLSN_Media).

Forward-Looking Statements
Statements made in the press release relating to future status or circumstances,
including future performance and other trend projections are forward-looking
statements. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. There can be no assurance that actual results will not
differ materially from those expressed or implied by these forward-looking
statements due to many factors, many of which are outside the control of
TeliaSonera.
TeliaSonera provides network access and telecommunication services in the Nordic
and Baltic countries, the emerging markets of Eurasia, including Russia and
Turkey, and in Spain. TeliaSonera helps people and companies communicate in an
easy, efficient and environmentally friendly way. Our ambition is to be number
one or two in all our markets, providing the best customer experience, high
quality networks and cost efficient operations. TeliaSonera is also the leading
European wholesale provider with a wholly-owned international carrier network.
In 2013, net sales amounted to SEK 101.7 billion, EBITDA to SEK 35.6 billion and
earnings per share to SEK 3.46. The TeliaSonera share is listed on NASDAQ OMX
Stockholm and NASDAQ OMX Helsinki. Read more at
www.teliasonera.com.                 (http://www.teliasonera.com/)

Attachments

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