Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Q1 2020 Earnings Presentation
24 slides from Elisa Oyj Class A's earnings presentation, Apr 22, 2020
Slide 1: Interim Report Q1 2020
Q1 2020 Interim Report Q1 2020 22 APRIL 2020
Slide 2: Q1 2020 highlights
INTERIM REPORT Q1 2020 Q1 2020 highlights • Revenue grew by 6% • Comparable EBITDA up by 5% • Mobile service revenue growth 2.1% • Post-paid churn decreased to 18.9% (20.1% in Q4) • Post-paid mobile subscription base increased by 20,800 • Fixed broadband subscription base decreased by 400 • 5G servi
Slide 3: Strong quarter in challenging circumstances
INTERIM REPORT Q1 2020 Strong quarter in challenging circumstances Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 6,5% Increase • 4G and 5G up- 2,4% 3,5% 2,1% 1,9% 2,3% 1,5% 2,1% -2,2% -1,3% • Polystar selling continues • Mobile services • Product changes • Equipment sa
Slide 4: Solid growth in both segments
INTERIM REPORT Q1 2020 Solid growth in both segments Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +5% + Mobile and domestic digital services + Equipment sales 38% 37% 40% 38% 36% + Estonian business - Fixed-line services 273 105 282 106 295 117 302 109 286 109 EBIT
Slide 5: Strategy execution
INTERIM REPORT Q1 2020 Strategy execution Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Up-selling of mobile subs continues, 5G proceeds
INTERIM REPORT Q1 2020 Up-selling of mobile subs continues, 5G proceeds Growth in 4G smartphone penetration Smartphone and 4G speed penetration,% Smartphone penetr.1) 4G speed penetr.2) 4G 50 Mbps penetr.2) • 85% of customers use a smartphone 82% 83% 84% 84% 85% 85% 79% 80% 80% 81% – 98% (97%) 4G- a
Slide 7: Successful rollout of 5G services continues
INTERIM REPORT Q1 2020 Successful rollout of 5G services continues • 5G network launched in 18 cities • Demand increased for 5G FWA service that enables using 5G as the main home internet connection • Growing smartphone offering: Samsung S 20 5G, One Plus 8 and Xiaomi Mi • In February, the Port of H
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q1 2020 Expansion of digital service businesses continued Domestic digital services International digital services • Elisa Viihde original series “Californian Commando” • Videra’s business has developed according to plan and “Kevyttä yläpilveä” launched during Q1. “Man in • Elisa Auto
Slide 9: Adapting operations and supporting society in the coronavirus situation
INTERIM REPORT Q1 2020 Adapting operations and supporting society in the coronavirus (COVID-19) situation • Majority of personnel moved immediately to remote working – Safety ensured in customer interaction premises • 24/7 monitoring of network capacity and intensive follow-up of customer demand for
Slide 10: Outlook and guidance for 2020
INTERIM REPORT Q1 2020 Outlook and guidance for 2020 The current coronavirus (COVID-19) situation may significantly slow down economic growth and create uncertainty in macroeconomic development. Competition in the Finnish telecommunications market remains keen. • Guidance for 2020 is unchanged • Rev
Slide 11: Financial performance
Q1 2020 Financial performance INTERIM REPORT Q1 2020
Slide 12: Strong growth in revenue and earnings
INTERIM REPORT Q1 2020 Strong growth in revenue and earnings EUR million 1) Q1/20 Q1/19 Change % Q1 2020 revenue change YoY, €28m Revenue 468.1 439.7 28.4 6.5 % Other operating income 0.6 0.7 -0.1 -8.0 % Materials and services -171.6 -160.5 -11.1 6.9 % -0 Employee expenses -87.1 -83.5 -3.7 4.4 % Oth
Slide 13: Growth continues in Estonia
INTERIM REPORT Q1 2020 Growth continues in Estonia • Revenue and EBITDA improved Revenue Revenue, €m YoY change, % 10,0% – Revenue growth +10% 6,7% 7,2% • Equipment sales • Mobile and fixed services 1,2% -3,2% – EBITDA growth +5% – Mobile post-paid base +1,900, pre-paid -7,000 40,4 42,2 44,5 47,8 44
Slide 14: Full year CAPEX guidance intact
INTERIM REPORT Q1 2020 Full year CAPEX guidance intact • CAPEX €51m (57), excl. IFRS 16 CAPEX1) change €48m (51) CAPEX / sales1) % 15% 12% 12% 11% 10% – Consumer €32m (37) – Corporate €18m (19) 71 51 55 52 48 • Q1 CAPEX / sales 10% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 – Seasonality, full year guidance max.
Slide 15: Cash flow growth +7.3%
INTERIM REPORT Q1 2020 Cash flow growth +7.3% Cash flow and comparable cash flow, €m • Q1 Cash flow €73m (68) 68 102 98 73 – Higher EBITDA, lower CAPEX as well as paid 55 interest and taxes affected positively 97 68 73 55 37 – Less positive NWC change and higher licence fees affected negatively Q1/1
Slide 16: Efficient capital structure and good returns
INTERIM REPORT Q1 2020 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA – Net debt / EBITDA 1.7x (target 1.5–2x) 2,0 1,8 1,7 1,8 1,7 – Equity ratio 42.4% (target >35%) 1 184 1 124 1 073 1 068 1 117 2016 2017 2018 2019 Q1/20
Slide 17: Competitive remuneration continues
INTERIM REPORT Q1 2020 Competitive remuneration continues • Dividend of €1.85 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Dividend growth +6% 92% 93% 90% 96% 89% – Total amount €296m 5.7% 10.0% 6.1% – Paid on 15 April 2020 7.1% 6.1% 1,75 1,85 1,65 1,50 • Payout
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Q4/18 Q3/18 Q2/18 Revenue 468.1 487.3 464.9 451.6 439.7 470.6 453.9 457.5 YoY growth 6.5 % 3.5 % 2.4 % -1.3 % -2.2 % -0.4 % 0.0 % 2.8 % Other operating income 0.6 3.0 0.9 1.1 0.7 0.9 1.8 6.0 Materials and services -171.6 -191.7 -172.1
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q1/20 Q1/19 Change1) 2019 2018 Change1) EBITDA 166 155 11 661 640 21 Change in receivables 23 9 14 -20 6 -26 Change in inventories 2 6 -4 -2 3 -5 Change in payables -22 -7 -15 17 -30 47 Change in NWC 3 8 -5 -5 -21 16 Financials (net) -11 -16 5 -21 -17 -4 Taxes for t
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Q4/18 Q3/18 Q2/18 EBITDA 166 168 179 159 155 158 169 160 Change in receivables 23 -32 -2 5 9 4 -23 19 Change in inventories 2 -6 -1 -1 6 -7 2 1 Change in payables -22 27 -9 5 -7 -1 2 -5 Change in NWC 3 -11 -12 10 8 -4 -20 15 Fin
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Q4/18 Q3/18 Q2/18 Bonds and notes 758 757 943 941 939 767 766 764 Commercial papers 176 133 65 80 10 107 179 267 Loans from financial institutions 250 250 290 290 250 250 200 205 Financial leases 1) 93 96 92
Slide 23: 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 24: 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