Slide 1: Interim Report July 1 - September 31, 2001
Interim Report July 1 - September 31, 2001 1
Slide 2: Elisa continued to grow maintaining a solid financial position
Elisa continued to grow maintaining a solid financial position Execution of strategic agenda on track • Completing a successful share exchange, Elisa owns over 90% of Soon • Network and service operations of Elisa, Soon and Radiolinja will be incorporated to facilitate cost and capex savings • Elisa
Slide 3: Key figures of Elisa Communications Group
Key figures of Elisa Communications Group EURm 3Q/2001 3Q/2000 3Q/2001* 3Q/2000* Revenue 389 306 389 306 EBITDA 91 72 91 72 EBIT 16 25 22 25 Pre Tax Profit -1 17 5 17 * excl. one-time items • Revenue growth 27%, including new subsidiaries • EBITDA growth 26%, margin remained flat at 23% • EBIT was a
Slide 4: Business Areas: Mobile Business 3Q/2001
Business Areas Mobile Business 3Q/2001 EURm 3Q/2001 3Q/2000 change 2000 Revenue 175 153 14 % 614 EBITDA 58 42 38 % 170 EBIT 36 24 54 % 4 Radiolinja Group • Radiolinja Group’s top-line growth was 14% • ARPU increased to EUR 44.2 per month (42.6) • Subscriptions in networks increased by 10% to 1.44 mi
Slide 5: Mobile Business 3Q/2001
Mobile Business 3Q/2001 • New domestic terminating tariff reduced revenues 3 to 4% from September onwards, but margins remained unaffected • Average amount of SMS sent per subscriber increased to 26 per month (24) • Radiolinja launched a subscription product ”Tandem Aina” in September • Content serv
Slide 6: Fixed Network Business 3Q/2001
Fixed Network Business 3Q/2001 EURm 3Q/2001 3Q/2000 change 2000* Revenue 191 120 59 % 504 EBITDA 52 22 136 % 155 EBIT 13 1 1300 % 58 *excl. sales profit of Comptel's shares • EBITDA boosted to EUR 52 million (22) with margin of 27% (18%) • Revenue growth was 59%, comparable growth 5% • Elisa Group’s
Slide 7: Fixed Network Business 3Q/2001
Fixed Network Business 3Q/2001 • Elisa Networks commenced operations as of 1.10.2001 • Elisa switched most of the domestic long-distance traffic to its own network • Voice service business was transferred to Datatie • Elisa Group signed an agreement with Eniro to sell the directory business • The ca
Slide 8: Germany-based Operations 3Q/2001
Germany-based Operations 3Q/2001 EURm 3Q/2001 3Q/2000 change** 2000* Revenue 14 6 n.a. 17 EBITDA -9 -5 n.a. -15 EBIT -13 -6 n.a. -18 * All companies in Germany without one-time items ** Disparate figures • Consolidated revenue was EUR 14.2 million (17 full year 2000) • The aggregate revenue volume o
Slide 9: Germany-based Operations 3Q/2001
Germany-based Operations 3Q/2001 • City carrier business, which represents over 80% of the total investment of Elisa in Germany, progressed according to plan Aggregate actual figures from carriers in portfolio (trend-lines from January-September) 20 15 Revenue 10 MEUR 5 0 EBITDA EBIT -5 -10 01/01 02
Slide 10: Other Operations 3Q/2001
Other Operations 3Q/2001 EURm 3Q/2001 3Q/2000 change 2000 Revenue 19 34 -44 % 134 EBITDA -10 12 -183 % 1 EBIT -12 -7 -71 % -6 • Comptel revenue EUR 11.0 million (14.2), EBIT EUR 0.7 million (5.2) • Comptel retained its leading position in the mediation market world-wide in a challenging situation, w
Slide 11: Elisa Focuses on Profitability
Elisa Focuses on Profitability • Cost savings in the new group structure – Synergy benefits from the new service and network operator companies – Adaptation of the personnel capacity to the new requirements – Cost cut program in the entire Group – Price adjustments, simplified product portfolio • Sc
Slide 12: Future Outlook
Future Outlook • The group's revenue is expected to grow faster than the sector in general in 2001 • Euro value of EBITDA without one-time items is estimated to improve compared to 2000 • Net profit is estimated to reach zero level. This estimate includes one-time items such as the capital gain expe
Slide 13: Interim Report July 1 - September 31, 2001
Interim Report July 1 - September 31, 2001 13
Slide 14: Elisa Communications Group figures without one-time items
Elisa Communications Group figures without one-time items EURm 7-9/01* 7-9/00 1-9/01* 1-9/00** Revenue 389 306 1053 899 Other income from operations 4 4 24 7 EBITDA 91 72 242 228 EBITDA margin 23 % 24% 23% 25% Depreciation -58 -39 -146 -109 Goodwill depreciation -11 -8 -35 -23 EBIT 22 25 61 96 EBIT
Slide 15: Revenue, EBITDA and EBIT Breakdown 1-9/2001 (EURm)
Revenue, EBITDA and EBIT Breakdown 1-9/2001 (EURm) Mobile Revenue EBITDA EBIT German Business Revenue EBITDA EBIT 1-9/2001 1-9/2000 1-9/2001 1-9/2000 1-9/2001 1-9/2000 1-9/2001 1-9/2000 1-9/2001 1-9/2000 1-9/2001 1-9/2000 Radiolinja 513 455 151 138 92 95 Elisa Kommunikation GmbH 40 7 -21 -6 -33 -8 G
Slide 16: Churn annually, %
Churn annually, % 18 16 15,5 14,8 14 12,2 12,5 12 10,9 10 7,7 8 6 4 2 0 1997 1998 1999 2000 3Q/2000 3Q/2001 16