Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Q4 2022 Earnings Presentation
24 slides from Elisa Oyj Class A's earnings presentation, Jan 27, 2023
Slide 1: Interim Report Q4 2022
Interim Report Q4 2022 27 January 2023
Slide 2: Q4 2022 highlights
INTERIM REPORT Q4 2022 Q4 2022 highlights • Revenue grew by 5.1% • Comparable EBITDA up by 3.9% • Mobile service revenue increased by 5.4% • In Finland, post-paid churn decreased to 16.2% (18.6% in Q3) • Post-paid subscriptions grew by 23,500. M2M and IoT subscription base grew by 35,400. • Fixed br
Slide 3: A record year 2022: 7% revenue growth, 7% EPS growth
2022 HIGHLIGHTS A record year 2022: 7% revenue growth, 7% EPS growth Comparable figures CHANGE CHANGE Financials 2022 IN 2022 Operational KPIs 2022 IN 2022 Revenue €2,130m +6.6% Mobile service revenue €919m +6.6% EBITDA €735m +4.2% Mobile subs 5,088,200 +3,4% EBITDA-% 34.5% -0.8 pp Fixed broadband s
Slide 4: Solid performance continues in all businesses
INTERIM REPORT Q4 2022 Solid performance continues in all businesses Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 6,1% 6,8% 7,2% 6,9% 5,4% 7,5% 6,2% 7,7% 7,6% 5,1% Increase • 5G upselling • Mobile and fixed continuing services • Product changes • Digital services • E
Slide 5: Growth continued in all business areas
INTERIM REPORT Q4 2022 Growth continued in all business areas Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +4% + Mobile services + Digital services 39% 38% 40% 36% 36% + Equipment sales - Interconnection and traditional fixed-line services 327 118 313 121 319 122 3
Slide 6: Strategy execution
INTERIM REPORT Q4 2022 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 6
Slide 7: Transformation to data bundles has taken place while speed upgrades continue
INTERIM REPORT Q4 2022 Transformation to data bundles has taken place while speed upgrades continue Growth in smartphone penetration Smartphone and 4G/5G speed penetration.% Smartphone penetr. 4G/5G speed penetr.1) 4G 50 Mbps penetr.1) • 93% of customers use a smartphone 87% 89% 91% 92% 92% 93% 93%
Slide 8: Elisa leading in 5G, expansion of fibre network continues
INTERIM REPORT Q4 2022 Elisa leading in 5G, expansion of fibre network continues • 5G coverage reached over 227 locations and over 86% population coverage in Finland, and over 70% in Estonia, where building began in H2 2022 • Average billing increase of >€3 in 5G upgrades intact • In Estonia, Elisa
Slide 9: Expansion of digital service businesses continued
INTERIM REPORT Q4 2022 Expansion of digital service businesses continued Domestic digital services International digital services • Entertainment services • Elisa IndustrIQ – New Elisa Viihde original series continued their success – Record order intake for IndustrIQ in Q4, customers very active • S
Slide 10: A sustainable future through digitalisation
INTERIM REPORT Q4 2022 A sustainable future through digitalisation Key ESG indicators 4Q22 4Q21 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -5.7 % - Population coverage of >100 Mbps connections in Finland 86.2 % 72.6 % Proportion of female sup
Slide 11: Outlook and guidance for 2023
INTERIM REPORT Q4 2022 Outlook and guidance for 2023 The development of the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, uncertainty relating to Russia's war in Ukraine, such as inflation, energy prices and global supply chains, will
Slide 12: Financial review Q4 2022
Nise Financial review Q4 2022
Slide 13: Growth continued – a record year 2022
INTERIM REPORT Q4 2022 Growth continued – a record year 2022 EUR million 1) Q4/22 Q4/21 Change % 2022 2021 Change % Q4 2022 YoY revenue change €27m Revenue 563 536 27 5% 2,130 1,998 132 7% Other operating income 4 2 2 93% 7 9 -2 -24% -2 Materials and services -224 -212 -12 5% -821 -764 -57 8% 5 Empl
Slide 14: Growth continues in Estonia
INTERIM REPORT Q4 2022 Growth continues in Estonia • Revenue and EBITDA improved Revenue Revenue. €m YoY change. % 11,0% 10,1% – Revenue +5% 8,8% 8,1% • Mobile services 5,3% • Equipment sales • Fixed services – EBITDA growth +9% 53,0 49,3 51,4 53,0 55,8 – Mobile post-paid base -400, pre-paid +700 Q4
Slide 15: CAPEX inline with guidance
INTERIM REPORT Q4 2022 CAPEX inline with guidance • CAPEX €97m (84), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €88m (75) 14% 12% 16% 10% 10% – Consumer €62m (54) – Corporate €35m (27) 88 75 53 63 50 • Full year CAPEX €255m (247), 12% of Q4/21 Q1/22 Q2/22 Q3/22 Q4/22
Slide 16: Solid cash flow
INTERIM REPORT Q4 2022 Solid cash flow • Q4 cash flow €86m (85) Cash flow and comparable cash flow, €m Comparable • Q4 comparable cash flow €86m (87) 87 82 87 + Higher EBITDA, NWC change 66 - CAPEX, taxes 85 81 79 86 53 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Cash conversion Change in net working capital, €m
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q4 2022 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA 1,7 1,8 1,8 1,7 1,7 – Net debt / EBITDA 1.7× (target: 1.5–2×) – Equity ratio 40.6% (target: >35%) 1 068 1 184 1 207 1 219 1 276 2018 2019 2020 2021 2022
Slide 18: Growing dividend for 9 consecutive years
INTERIM REPORT Q4 2022 Growing dividend for 9 consecutive years • Dividend proposal of €2.15 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Dividend growth +4.9% 98% 94% 92% 93% 96% 95% 95% 92% 89% 90% – Total amount €345m 4.9% 5.4% 5,1% 5.7% – Ex-dividend date 11
Slide 19: Q&A
Q&A
Slide 20: P&L by quarter
APPENDIX P&L by quarter EUR million Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Revenue 562,6 534,0 521,5 511,4 535,5 496,5 484,3 481,6 498,2 YoY growth 5,1 % 7,6 % 7,7 % 6,2 % 7,5 % 6,2 % 5,1 % 2,9 % 2,2 % Other operating income 3,5 1,3 1,1 0,9 1,8 1,6 3,0 2,5 1,6 Materials and services -
Slide 21: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q4/22 Q4/21 Change1) % 1-12/22 1-12/21 Change1) % EBITDA 185 176 9 5% 733 697 36 5% Change in receivables -42 -53 12 -22 % -16 -32 16 -49 % Change in inventories 5 -9 15 -159 % -13 -18 4 -24 % Change in payables 63 73 -10 -13 % 2 53 -51 -96 % Change in N
Slide 22: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 EBITDA 185 194 177 177 176 186 166 170 171 Change in receivables -42 0 -17 43 -53 -6 5 23 -20 Change in inventories 5 -9 -3 -6 -9 -2 1 -7 -2 Change in payables 63 -9 6 -58 73 -3 13 -30 37 Change in NWC 27
Slide 23: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Bonds and notes 892 891 890 889 888 887 886 885 1 058 Commercial papers 125 169 180 140 0 55 130 103 20 Schuldschein 0 0 0 100 100 100 100 100 Loans from financial institutions 253 283
Slide 24: Contacts
Contacts Mr Vesa Sahivirta Ms Kati Norppa Forward-looking statements: Statements made in this document relating to the future, vesa.sahivirta@elisa.fi kati.norppa@elisa.fi including future performance and other trend projections, are forward-looking statements. By their nature, forward-looking state