Slide 1: Financial Results 2018
Q4 2018 Financial Results 2018 31 JANUARY 2019
Slide 2: Q4 2018 highlights
INTERIM REPORT Q4 2018 Q4 2018 highlights • Record result again • Revenue at last year’s level – Growth in Consumer and decline in Corporate segment • Comparable EBITDA growth 3% • Mobile service revenue growth 1.5% – Up-selling continues, good demand for Premium subscriptions • Postpaid voice churn
Slide 3: Growth in revenue and in all earnings lines
2018 HIGHLIGHTS – COMPARABLE FIGURES Growth in revenue and in all earnings lines 2018 best ever year in Elisa’s history CHANGE CHANGE Financials 2018 IN 2018 Operational KPIs 2018 IN 2018 Revenue €1,832m +2.5% Mobile service revenue €808m +2.0% EBITDA €639m +4.2% Mobile subs 4,660,700 -0,4% EBITDA-%
Slide 4: EBITDA growth continued despite keen competition
INTERIM REPORT Q4 2018 EBITDA growth continued despite keen competition Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 5,1% 8,9% 8,1% Divestments 3,9% • 4G up-selling 2,8% 1,6% 1,1% 1,5% continues 0,0% -0,4% Growth • Mobile and • Campaigns digital services impact on gro
Slide 5: Solid growth in consumer segment
INTERIM REPORT Q4 2018 Solid growth in consumer segment Divestments impacted corporate EBITDA Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +1%, EBITDA +7%1) + Mobile and digital services + Equipment sales 38% 36% 36% 35% 33% - Traditional fixed services - Divestmen
Slide 6: Strategy execution
INTERIM REPORT Q4 2018 Strategy execution Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 6
Slide 7: Growth in 4G and up-selling continues
INTERIM REPORT Q4 2018 Growth in 4G and up-selling continues Growth in 4G smartphone penetration Smartphone penetration1),% • 82% of customers use a smartphone 81% 82% 77% 78% 79% 80% 80% 74% 75% – 96% (92%) 4G-capable • 93% of phones sold 4G-capable Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q4 2018 Expansion of digital service businesses continued Leveraging core business capabilities and providing interesting growth perspective Domestic digital services International digital services • Original series Arctic Circle (global distribution • Videra introduces Cisco and Poly
Slide 9: More recognition: Elisa has received the Finnish Quality Award
INTERIM REPORT Q4 2018 More recognition: Elisa has received the Finnish Quality Award • The best quality comes from listening to the needs of customers • We invest in continuous improvement and learning by experimentation • Many of our innovations are today value- creating services for our customers
Slide 10: Outlook and guidance for 2019
INTERIM REPORT Q4 2018 Outlook and guidance for 2019 The positive development of the macroeconomic environment is decelerating in Finland. Competition remains challenging. • Revenue same level or slightly higher than in 2018 • Comparable EBITDA same level or slightly higher than in 2018 – First quar
Slide 11: Financial performance
Q4 2018 Financial performance INTERIM REPORT Q4 2018
Slide 12: Earnings growth continues
INTERIM REPORT Q4 2018 Earnings growth continues Q4 2018 P&L and growth1) Q4 revenue YoY growth Revenue -0,4% €471m 0,2% -0,9% 0,3% -0,4% EBITDA 3,0% €158m Organic Acquisitions Disposals Total EBIT 3,6% €98m Q4 revenue change YoY, -€2m PTP 4,0% €93m 2 -3 0 -1 473 471 EPS 3,0% €0.47 Q4/17 Consumer Co
Slide 13: Solid revenue and EBITDA growth in Estonia
INTERIM REPORT Q4 2018 Solid revenue and EBITDA growth in Estonia • Revenue +6%, EBITDA +13% Revenue Revenue, €m YoY change, % – Mobile and fixed services 75,2% 63,2% – Post-paid voice churn 8.2% (9.0% in Q3) – Mobile post-paid base +3,600, pre-paid -2,000 6,0% 7,8% 5,2% • Integration of acquired co
Slide 14: CAPEX in line with guidance
INTERIM REPORT Q4 2018 CAPEX in line with guidance • CAPEX €92m (71) CAPEX CAPEX / sales1) % Consumer, €m Corporate, €m • Excl. 3.5 GHz licence €66m (71) 15% 12% 13% 11% 14% – Consumer €44m (48) – Corporate €22m (23) 23 20 22 17 16 – Full year 2018 CAPEX / sales 12%, according to 48 35 41 33 44 targ
Slide 15: Cash flow growth continues
INTERIM REPORT Q4 2018 Cash flow growth continues • Cash flow €52m (48), comparable Cash flow, €m €57m – Comparable cash flow growth +19% – Lower CAPEX, higher EBITDA 81 87 • Comparable FY cash flow €282m 48 52 52 (246), growth +14% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 • Strong cash conversion continues Ch
Slide 16: Efficient capital structure and good returns
INTERIM REPORT Q4 2018 Efficient capital structure and good returns • Capital structure according to target Interest and net debt Net debt, €m Net debt / EBITDA – Net debt / EBITDA 1.5–2x 1,9 2,0 1,8 1,8 1,7 – Equity ratio >35%, in Q4 42.4% 1 124 1 073 1 068 • Lower interest through refinancing 1 00
Slide 17: Competitive remuneration continues
INTERIM REPORT Q4 2018 Competitive remuneration continues • Dividend proposal of €1.75 per share Dividend Dividend per share, € Payout ratio1), % Dividend YoY growth – Dividend growth +6% 94% 92% 93% 89% 90% – Total amount €280m 6.1% 10.0% – Ex-dividend date 4 April 2019 7.1% 1.5% 6.1% – Payment dat
Slide 18: Q&A
Q&A
Slide 19: 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 20: P&L by quarter
APPENDIX P&L by quarter EUR million Q4/18 Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Revenue 470,6 453,9 457,5 449,6 472,5 453,9 445,1 415,9 YoY growth -0,4 % 0,0 % 2,8 % 8,1 % 8,9 % 8,4 % 13,3 % 6,6 % Other operating income 0,9 1,8 6,0 1,1 2,6 1,5 0,8 0,7 Materials and services -185,1 -172,9 -176,5
Slide 21: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison 1) 1) EUR million Q4/18 Q4/17 Change 2018 2017 Change EBITDA 158 151 7 640 608 32 Change in receivables 4 -33 36 6 -59 65 Change in inventories -7 -5 -2 3 -11 14 Change in payables -1 36 -38 -30 45 -75 Change in NWC -4 -1 -4 -21 -25 4 Financials (net) -5 -5 -17 -15
Slide 22: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q4/18 Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 EBITDA 158 169 160 153 151 165 148 144 Change in receivables 4 -23 19 7 -33 -15 -23 12 Change in inventories -7 2 1 7 -5 0 -8 3 Change in payables -1 2 -5 -26 36 -4 28 -15 Change in NWC -4 -20 15 -12 -1 -20 -4
Slide 23: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q4/18 Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Bonds and notes 767 766 764 763 767 766 766 765 Commercial papers 107 179 267 151 115 207 258 193 Loans from financial institutions 250 200 205 205 209 210 216 215 Financial leases 25 25 26
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