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TeliaSonera<br />
Finland/Telecommunications Analyser<br />
TeliaSonera (Accumulate)<br />
Accumulate<br />
Recommendation unchanged<br />
Share price: EUR<br />
closing price as of 07/05/2012<br />
Target price: EUR<br />
Target Price unchanged<br />
Reuters/Bloomberg<br />
5.09<br />
5.60<br />
TLS1V.HE/TLS1V FH<br />
Market capitalisation (EURm) 22,018<br />
Current N° of shares (m) 4,330<br />
Free float 49%<br />
Daily avg. no. trad. sh. 12 mth 1,173,183<br />
Daily avg. trad. vol. 12 mth (m) 6<br />
Price high 12 mth (EUR) 5.55<br />
Price low 12 mth (EUR) 4.46<br />
Abs. perf. 1 mth 5.67%<br />
Abs. perf. 3 mth -3.33%<br />
Abs. perf. 12 mth -6.70%<br />
Key financials (EUR) 12/11 12/12e 12/13e<br />
Sales (m) 10,348 10,958 11,217<br />
EBITDA (m) 4,192 4,197 4,339<br />
EBITDA margin 40.5% 38.3% 38.7%<br />
EBIT (m) 3,340 3,375 3,563<br />
EBIT margin 32.3% 30.8% 31.8%<br />
Net Profit (adj.)(m) 2,072 2,109 2,297<br />
ROCE 15.5% 16.4% 17.1%<br />
Net debt/(cash) (m) 7,408 6,588 7,077<br />
Net Debt/Equity 0.5 0.5 0.5<br />
Debt/EBITDA 1.8 1.6 1.6<br />
Int. cover(EBITDA/Fin. int) 13.1 11.1 16.0<br />
EV/Sales 2.2 2.0 2.0<br />
EV/EBITDA 5.4 5.3 5.2<br />
EV/EBITDA (adj.) 5.4 5.3 5.1<br />
EV/EBIT 6.8 6.6 6.3<br />
P/E (adj.) 10.9 10.4 9.6<br />
P/BV 1.6 1.6 1.5<br />
OpFCF yield 3.5% 10.4% 7.7%<br />
Dividend yield 6.3% 7.1% 7.2%<br />
EPS (adj.) 0.48 0.49 0.53<br />
BVPS 3.31 3.28 3.29<br />
DPS 0.32 0.36 0.37<br />
5.6 vvdsvdvsdy<br />
5.4<br />
5.2<br />
5.0<br />
4.8<br />
4.6<br />
4.4<br />
Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12<br />
Source: Factset<br />
TELIASONERA Stoxx Telecommunications (Rebased)<br />
Shareholders: Swedish state 37%; Finnish state 14%;<br />
Swedbank Robur Funds 3%;<br />
Analyst(s):<br />
Kimmo Stenvall, Pohjola<br />
kimmo.stenvall@pohjola.fi<br />
+358 10 252 4561<br />
Raises stake in TEO LT<br />
The facts: TeliaSonera announced it is raising its stake in TEO, a Lithuanian<br />
fixed-network operator, to just over 76% from the current 68%. The seller is the<br />
private equity company East Capital and the consideration totals EUR 38.9m.<br />
TeliaSonera is also launching a takeover bid for all outstanding shares (TEO is a<br />
listed company) with a total value of EUR 118m, offering a 5% premium to TEO‟s<br />
closing price yesterday.<br />
Our analysis: On our forecasts for this year, the price offered represents about<br />
5.5x TEO‟s EBITDA. The multiple is not demanding, which is implicit in the<br />
reasonably moderate premium. TeliaSonera seeks to increases ownership in core<br />
companies.<br />
Conclusion & Action: The action represents yet another step in the right<br />
direction. The news should not have a significant impact on the share price today.<br />
Page 36 of 80 European Securities Network<br />
Please refer to important disclaimer on the last page
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