Slide 1: Elisa Corporation Interim Report
Elisa Corporation Interim Report 1 April 2003 – 30 June 2003
Slide 2: Contents
Contents • Q2 2003 Report −President and CEO Veli-Matti Mattila • Key Figures and Financial Position −CFO Vesa-Pekka Silaskivi Elisa Corporation Q2 Interim Report 2 5 August 2003
Slide 3: Q2 2003 Report
Q2 2003 Report President and CEO Veli-Matti Mattila
Slide 4: Elisa Q2 2003
Elisa Q2 2003 • Financial Highlights • Highlights per Business Area • Decisions and Short-term activities • Outlook for 2003 Elisa Corporation Q2 Interim Report 4 5 August 2003
Slide 5: Q2 2003 Highlights
Q2 2003 Highlights • Revenue down EUR 391m (406), • Pre-tax profit improved EUR 7m (-10), −but core business profitability decreased slightly • EPS improved EUR 0,27 (-0,26) No one-off items, except Q2 2003 EPS include tax credit booking Elisa Corporation Q2 Interim Report 5 5 August 2003
Slide 6: Q2 2003 Highlights
Q2 2003 Highlights • Stable financial position −but profitability is not at satisfactory level • Operative CAPEX 10% of revenue Elisa Corporation Q2 Interim Report 6 5 August 2003
Slide 7: Elisa Mobile
Elisa Mobile • Revenue stable • Profitability decreased from Q2 2002 • Number of subscriptions increased 5% (1,357,000) Elisa Corporation Q2 Interim Report 7 5 August 2003
Slide 8: Fixed Network
Fixed Network • Revenue down slightly but profit stable • Narrowband channels down 7% • Number of Broadband channels doubled (market leader) • Strengthened position in call center and ICT solutions for corporate customers Elisa Corporation Q2 Interim Report 8 5 August 2003
Slide 9: Germany
Germany • Business is according to plan • Losses have narrowed • Corporate customer growth 40% Elisa Corporation Q2 Interim Report 9 5 August 2003
Slide 10: Already Taken Decisions and Actions
Already Taken Decisions and Actions • New management team • Reduction of headquarter costs −restructuring of corporate staff −move to less expensive and more effective facilities • Improved cost efficiency • Integrated key account sales • Strategy review process started Elisa Corporation Q2 Interim
Slide 11: Steady Strong Growth
Steady Strong Growth 1600 1400 1200 EUR million 1000 800 600 400 200 0 1998 1999 2000 2001 2002 ca 20% per annum Elisa Corporation Q2 Interim Report 11 5 August 2003
Slide 12: Short-term Activities
Short-term Activities Focused ambitions: 1. Improved profitability 2. Strong customer orientation 3. Simplification of the structure of Elisa Group Irrespective of the market Elisa Corporation Q2 Interim Report 12 5 August 2003
Slide 13: Outlook 2003
Outlook 2003 • Revenue slightly less than 2002 • Clean EBITDA and result improving • Operative CAPEX below 15% of revenue • Management committed to improve Elisa’s competitiveness for 2004 Elisa Corporation Q2 Interim Report 13 5 August 2003
Slide 14: Key Figures and Financial Position
Key Figures and Financial Position CFO Vesa-Pekka Silaskivi
Slide 15: Elisa Group's Q2 2003 P&L
Elisa Group’s Q2 2003 P&L Elisa Group Excl. one-off items* EURm Q2/03 Q2/02 2002 Q2/03 Q2/02 2002 Revenue 391 406 1563 391 406 1563 Other income from operations 9 1 18 9 1 92 EBITDA 97 86 342 97 86 333 EBITDA margin 25 % 21 % 22 % 25 % 21 % 21 % Depreciation -66 -64 -255 -66 -64 -255 Goodwill deprec
Slide 16: Operative CAPEX of Sales was 10%
Operative CAPEX of Sales was 10% 250 200 EUR million 141 21 150 42 100 38 2 4 2 5 12 4 31 5 5 1 50 109 20 21 2 4 76 73 72 70 9 8 48 49 46 30 39 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Investments in shares GSM network buy-backs Investments in Fixed Assets Elisa Corporation Q2 I
Slide 17: Write-Downs and Depreciations
Write-Downs and Depreciations 120 100 48 38 1 0 EUR million 6 17 16 0 80 11 14 16 14 12 14 14 3 60 2 11 11 12 40 66 65 66 58 66 60 64 64 20 44 45 0 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 One-off write-down Depreciation of goodwill Depreciation of fixed assets Elisa Corporation Q
Slide 18: Operative Cash Flow was EUR 48m
Operative Cash Flow was EUR 48m 70 50 EUR million 30 10 -10 -30 -50 Q1/01 Q2/01 Q3/01 Q4/01 2001 Q1/02 Q2/02 Q3/02 Q4/02 2002 Q1/03 Q2/03 Operative Cash flow = clean EBITDA – net financial items – CAPEX (excl. GSM network buy-backs) Elisa Corporation Q2 Interim Report 18 5 August 2003
Slide 19: Positive Cash Flow Lowered Net Debt
Positive Cash Flow Lowered Net Debt Consolidation of Sale of 900 Tropolys; change Sale of Elisa directory in debt reserving Instalia businesses 850 Sale of Direktia Seasonality effect 800 EUR million Positive cash flow due to low 750 investment level 700 650 600 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q
Slide 20: Elisa Corporation Interim Report
Elisa Corporation Interim Report 1 April 2003 – 30 June 2003
Slide 21: Appendix: Operative Cash Flow Versus Consolidated Cash Flow H1 2003
Appendix: Operative Cash Flow Versus Consolidated Cash Flow H1 2003 Net Working Capital items 100 90 80 70 60 50 40 30 20 10 0 GSM Buy Advance payments Operative Provision Other NWC Consolidated Billing due cashflow Interest Backs taxes cash flow GSM dates items Elisa’s interest payments Other Net W
Slide 22: Elisa Mobile's Key Figures
Elisa Mobile’s Key Figures Elisa Mobile's key figures, EURm Q2/03 Q2/02 % 2002 Revenue 190 192 -1 % 739 Clean EBITDA 49 56 -13 % 117 Clean EBITDA-% 26 % 29 % 16 % Leasing adj. EBITDA 56 66 -15 % 229 Leasing adj. EBITDA-% 29 % 34 % 31 % CAPEX 29 43 -33 % 145 CAPEX excl. network buy-backs 21 22 -5 % 9
Slide 23: Key Figures of Elisa Group
Key Figures of Elisa Group Elisa Group Q2/03 Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 EURm Revenue 391 371 385 388 406 384 386 389 331 EBITDA 97 85 118 51 86 78 183 91 75 EBITDA-% 25 % 23 % 31 % 13 % 21 % 20 % 47 % 23 % 23 % Clean EBITDA 97 85 88 84 86 86 97 91 77 Clean EBITDA-% 25 % 23 % 23
Slide 24: Key Figures of Elisa Group (cont.)
Key Figures of Elisa Group (cont.) Business Areas Q2/03 Q1/03 Q4/02 Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Elisa Mobile Revenue 190 175 185 188 192 174 180 185 170 ARPU, EUR 41,7 38,5 41,3 43,0 43,5 41,4 42,7 44,2 45,3 Churn, % 13,4 14,4 21,2 14,0 12,7 18,2 14,4 15,5 13,9 Subscriptions 1 356 881 1 348
Slide 25: Q2 2003 Key Figures per Business Area
Q2 2003 Key Figures per Business Area Elisa Mobile Revenue EBITDA EBIT Clean EBITDA Clean EBIT Service- and Q2/03 Q2/02 Q2/03 Q2/02 Q2/03 Q2/02 Q2/03 Q2/02 Q2/03 Q2/02 network operators 190 192 49 56 22 5 49 56 22 31 Intra-SBA sales Group bookings -10 -10 -10 -10 Total 190 192 49 56 12 -5 49 56 12 2