Slide 1: Q3 2018
Q3 2018 Q3 2018 18 OCTOBER 2018
Slide 2: Q3 2018 highlights
INTERIM REPORT Q3 2018 Q3 2018 highlights • Record quarter again • Revenue at the previous year’s level – Divestments – Growth in mobile and digital services • EBITDA growth 2% • Both domestic and international digital service businesses progressing well • Mobile service revenue growth 1% – Up-selli
Slide 3: EBITDA growth continued
INTERIM REPORT Q3 2018 EBITDA growth continued Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 5,5% 5,1% 8,4% 8,9% 8,1% Divestments 3,9% • 4G up-selling 2,8% 1,6% 1,1% continues 0,0% Growth • Mobile and • Campaigns have digital services decelerated growth • Estonia • Pro
Slide 4: Solid growth in consumer EBITDA
INTERIM REPORT Q3 2018 Solid growth in consumer EBITDA Divestments and investments in digital services impacted corporate EBITDA Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue -1%, EBITDA +5%1) + Digital services + Estonian business 38% 36% 36% 36% 33% - Traditional
Slide 5: Strategy execution
INTERIM REPORT Q3 2018 Strategy execution Build value on data Accelerate digital service business Improve performance by engaging people in building excellence 5
Slide 6: Growth in 4G and up-selling continues
INTERIM REPORT Q3 2018 Growth in 4G and up-selling continues Growth in 4G smartphone penetration Smartphone penetration1),% • 81% of customers use a smartphone 81% 77% 78% 79% 80% 80% 73% 74% 75% – 95% (90%) 4G-capable • 91% of phones sold 4G-capable Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q
Slide 7: Elisa's unique capabilities and innovations
INTERIM REPORT Q3 2018 Elisa’s unique capabilities and innovations recognised by EFQM assessment • Elisa has been granted the EFQM 5 Star Recognised for Excellence certificate – A holistic assessment by trained international EFQM assessors • Elisa demonstrated performance against globally proven str
Slide 8: Focused portfolio of digital service businesses
INTERIM REPORT Q3 2018 Focused portfolio of digital service businesses Leveraging core business capabilities and providing interesting growth perspective Domestic digital services International digital services Entertaining services International video conferencing • “Rent or buy”-feature of latest
Slide 9: Outlook and guidance for 2018 upgraded
INTERIM REPORT Q3 2018 Outlook and guidance for 2018 upgraded Macroeconomic environment has improved, but long-term structural challenges still remain. Competition remains challenging. • Revenue slightly higher than in 2017 • Comparable EBITDA slightly higher than in 2017 • CAPEX maximum 12% of reve
Slide 10: Financial performance
Q3 2018 Financial performance INTERIM REPORT Q3 2018
Slide 11: Despite some divestments, revenue at same level
INTERIM REPORT Q3 2018 Despite some divestments, revenue at same level Q3 2018 P&L and growth1) Revenue YoY growth Revenue 0,0% €454m 1,0% -1,0% EBITDA 2,1% €169m 0,0% Organic Divestments Total EBIT 1,2% €110m Revenue change YoY 0 -1 PTP 0,3% €104m -2 2 454 454 EPS 0,1% €0.53 Q3/17 Consumer Corporat
Slide 12: Solid revenue and EBITDA growth in Estonia
INTERIM REPORT Q3 2018 Solid revenue and EBITDA growth in Estonia • Revenue +5%, EBITDA +12% Revenue Revenue, €m YoY change, % – Mobile and fixed services 75,2% 63,2% – Post-paid voice churn 9.0% (9.5 in Q2) 50,3% – Mobile post-paid base +4,600, pre-paid +1,200 5,2% 7,8% • Integration of acquired co
Slide 13: CAPEX in line with guidance
INTERIM REPORT Q3 2018 CAPEX in line with guidance • CAPEX1) €49m (58) CAPEX CAPEX / sales1) % Consumer, €m Corporate, €m – Consumer €33m (39) 15% 12% 12% 13% 11% – Corporate €16m (19) – CAPEX / sales 11% 23 19 17 20 16 38 48 35 41 33 – 4G capacity and coverage increases Q3/17 Q4/17 Q1/18 Q2/18 Q3/1
Slide 14: Solid cash flow continuing
INTERIM REPORT Q3 2018 Solid cash flow continuing • Comparable cash flow €85m (71) Cash flow, €m – Growth +20% 113 – Lower CAPEX – Higher EBITDA 81 87 (71) • Comparable YTD cash flow €224m 48 52 (85) (202), growth +11% Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 • Strong cash conversion continues Change in net wo
Slide 15: Efficient capital structure
INTERIM REPORT Q3 2018 Efficient capital structure • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA1) – Net debt / EBITDA 1.5–2x 1,9 1,9 1,8 1,8 – Equity ratio >35% 1,6 1 201 1 120 1 073 1 118 1 018 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 • Return ratios at good level Return rat
Slide 16: Q&A
Q&A
Slide 17: Contacts
Contacts: Mr. Vesa Sahivirta Ms. Kati Norppa vesa.sahivirta@elisa.fi kati.norppa@elisa.fi +358 50 520 5555 +358 50 308 9773 investor.relations@elisa.fi
Slide 18: P&L by quarter
APPENDIX P&L by quarter EUR million Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Revenue 453,9 457,5 449,6 472,5 453,9 445,1 415,9 434,0 YoY growth 0,0 % 2,8 % 8,1 % 8,9 % 8,4 % 13,3 % 6,6 % 7,3 % Other operating income 1,8 6,0 1,1 2,6 1,5 0,8 0,7 1,5 Materials and services -172,9 -176,5 -170,0 -
Slide 19: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison € MILLION Q3/18 Q3/17 CHANGE1) 1-9/18 1-9/17 CHANGE1) 2017 EBITDA 169 165 3 482 457 25 608 Change in receivables -23 -15 -8 2 -27 29 -59 Change in inventories 2 0 2 10 -6 16 -11 Change in payables 2 -4 6 -29 9 -37 45 Change in NWC -20 -20 0 -17 -24 7 -25 Financials
Slide 20: Cash flow by quarter
APPENDIX Cash flow by quarter € MILLION Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 EBITDA 169 160 153 151 165 148 144 139 Change in receivables -23 19 7 -33 -15 -23 12 6 Change in inventories 2 1 7 -5 0 -8 3 -2 Change in payables 2 -5 -26 36 -4 28 -15 8 Change in NWC -20 15 -12 -1 -20 -4 0 12 F
Slide 21: Debt structure
APPENDIX Debt structure € MILLION. AT THE END OF QUARTER Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Bonds and notes 766 764 763 767 766 766 765 594 Commercial papers 179 267 151 115 207 258 193 199 Loans from financial institutions 200 205 205 209 210 216 215 218 Financial leases 25 26 26 26 26
Slide 22: Forward-looking statements
INTERIM REPORT Forward-looking statements Statements made in this document relating to the future, including future performance and other trend projections, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and d