Slide 1: Financial Results 2017
Q4 2017 Financial Results 2017 31 JANUARY 2018
Slide 2: Q4 2017 highlights
INTERIM REPORT Q4 2017 Q4 2017 highlights • Record quarter again – good growth in revenue and result • Revenue grew by 9% – Organic revenue growth 4% – Growth in both customer segments • EBITDA growth 11% – Growth in both customer segments • Mobile service revenue growth 5.6% – Up-selling continues,
Slide 3: Growth in revenue and in all earnings lines
2017 HIGHLIGHTS – COMPARABLE FIGURES Growth in revenue and in all earnings lines CHANGE CHANGE Financials 2017 IN 2017 Operational KPIs 2017 IN 2017 Revenue €1,787m +9.3% Mobile service revenue €806m +5.7% EBITDA €613m +8.7% Mobile subs 4,679,300 -0,3% EBITDA-% 34.3% -0.2 pp Fixed broadband subs 692
Slide 4: Growth in revenue and EBITDA
INTERIM REPORT Q4 2017 Growth in revenue and EBITDA Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change, % 13,3% Growth 6,4% • Up-selling 8,4% 8,9% 5,5% 5,6% 5,6% 7,3% 6,6% • Mobile and • Premium digital services 3,4% subscriptions • Acquisitions • Product changes • Estonia 4
Slide 5: Solid performance in both customer segments
INTERIM REPORT Q4 2017 Solid performance in both customer segments Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +8%, EBITDA +11% + Mobile service revenue + Recent acquisitions 35% 36% 36% + Digital services and equipment sales 32% 33% - Traditional fixed services 2
Slide 6: Strategy execution
INTERIM REPORT Q4 2017 Strategy execution Build value on data Accelerate digital service business Improve performance through customer intimacy and operational excellence 6
Slide 7: Growth in 4G and up-selling continues
INTERIM REPORT Q4 2017 Growth in 4G and up-selling continues Growth in 4G smartphone penetration Smartphone penetration1), % • 79% of customers use a smartphone 74% 75% 77% 78% 79% – 92% 4G-capable 68% 70% 71% 73% • 93% of phones sold 4G-capable Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
Slide 8: Outlook and guidance for 2018
INTERIM REPORT Q4 2017 Outlook and guidance for 2018 Macroeconomic environment has improved, but long-term structural challenges still remain. Competition remains challenging. • Revenue same level or slightly higher than in 2017 • Comparable EBITDA same level or slightly higher than in 2017 • CAPEX
Slide 9: Financial performance
Q4 2017 Financial performance INTERIM REPORT Q4 2017
Slide 10: Strong revenue and earnings growth continues
INTERIM REPORT Q4 2017 Strong revenue and earnings growth continues Q4 2017 P&L and growth1) Revenue Q4 YoY growth Revenue 9% €473m 5% 9% EBITDA 11% €154m 4% Organic Starman and Santa Total Monica EBIT 12% €95m Revenue change Q4 YoY, €39m PTP 12% €89m 13 8 1 17 473 EPS 13% €0.46 434 454 Q4/16 Consum
Slide 11: Strong growth in Estonia through acquisitions
INTERIM REPORT Q4 2017 Strong growth in Estonia through acquisitions • Revenue +63%, EBITDA +66% Revenue Revenue, €m YoY change, % – Acquisitions 59,3 % 50,3 % 63,2 % – Mobile services 3,2 % 4,1 % • Keen competition – Post-paid voice churn 13.5% (11.3 in Q3) 26 24 39 40 42 – Mobile post-paid base at
Slide 12: CAPEX according to guidance
INTERIM REPORT Q4 2017 CAPEX according to guidance • CAPEX1) €71m (62) CAPEX CAPEX / sales1), % Consumer €m Corporate €m – Consumer €48m (43) 15% 14% 13% 13% 12% – Corporate €23m (19) • FY17 CAPEX1) €241m (204) 19 19 23 18 19 – CAPEX / sales 13% 43 35 41 38 48 – According to full-year guidance Q4/16
Slide 13: Solid cash flow continuing
INTERIM REPORT Q4 2017 Solid cash flow continuing • Q4 cash flow €48m (-115, Cash flow, €m comparable 531)) + Higher EBITDA 113 63 76 48 – Higher CAPEX -115 – Negative NWC change Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 • Full year cash flow €300m (65) Cash conversion • Comparable cash flow2) €246m (281) Opera
Slide 14: Efficient financing and capital structure
INTERIM REPORT Q4 2017 Efficient financing and capital structure • Capital structure according to target Interest and net debt Net debt, €m Interest / average net debt1), % Net debt / EBITDA – Net debt / EBITDA 1.5 – 2x 2,7% 2,5% – Equity ratio >35% 1,9% 1,6% 1,4% 2.0 1.8 2.0 1.9 1.8 • Lower interes
Slide 15: Impact of changes to IFRS 2, 9, 15 and 16
INTERIM REPORT Q4 2017 Impact of changes to IFRS 2, 9, 15 and 16 STARTING DATE IMPACTS IFRS 2 1 January 2018 No material effect on revenue and Share-based payment profitability. No effect on cash flow. IFRS 9 1 January 2018 P&L interests €2m higher in 2018 and 2019. Financial instruments No effect o
Slide 16: Competitive remuneration continues
INTERIM REPORT Q4 2017 Competitive remuneration continues • Dividend proposal of €1.65 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Dividend growth +10% 104% 94% 92% 93% 89% – Total amount €263m 10.0% – Ex-dividend date 13 April 2018 7.1% 6.1% 0.0% 1.5% – Payment
Slide 17: Q&A
Q&A
Slide 18: 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 19: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison € MILLION Q4/17 Q4/16 CHANGE1) 2017 2016 CHANGE1) EBITDA 151 139 12 608 563 45 Change in receivables -33 6 -39 -59 -3 -56 Change in inventories -5 -2 -3 -11 1 -11 Change in payables 36 8 28 45 12 -33 Change in NWC -1 12 -13 -25 9 -34 Financials (net) -5 -7 1 -15 -16
Slide 20: Cash flow by quarter
APPENDIX Cash flow by quarter € MILLION Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 EBITDA 151 165 148 144 139 154 134 137 Change in receivables -33 -15 -23 12 6 -30 19 2 Change in inventories -5 0 -8 3 -2 -7 3 6 Change in payables 36 -4 28 -15 8 11 -2 -6 Change in NWC -1 -20 -4 0 12 -26 21 3 Fi
Slide 21: Debt structure
APPENDIX Debt structure € MILLION, AT THE END OF QUARTER Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Bonds and notes 767 766 766 765 594 594 593 593 Commercial papers 115 207 258 193 199 201 215 146 Loans from financial institutions 209 210 216 215 218 219 195 195 Financial leases 26 26 26 25 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