Slide 1: Interim Report Q2 2022
Interim Report Q2 2022 15 July 2022
Slide 2: Q2 2022 highlights
INTERIM REPORT Q2 2022 Q2 2022 highlights • Revenue grew by 8% • Comparable EBITDA up by 4% • Mobile service revenue increased by 7.2% • In Finland, post-paid churn decreased to 15.3% (17.2% in Q1) • Post-paid subscriptions grew by 52,300, of which M2M and IoT subscriptions were 26,800 • Fixed broad
Slide 3: Solid performance continues
INTERIM REPORT Q2 2022 Solid performance continues Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 5.5% 6.1% 6.8% 7.2% 5.1% 6.2% 7.5% 6.2% 7.7% Increase 4.2% • 5G upselling • Mobile and fixed continuing services • Product changes • Digital services • Equipment sales 484
Slide 4: Growth continued in all business areas
INTERIM REPORT Q2 2022 Growth continued in all business areas Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +6% + Mobile services + Digital services 39% 40% 39% 38% 36% + Equipment sales - Interconnection and traditional fixed-line services 301 117 314 125 327 119 3
Slide 5: Strategy execution
INTERIM REPORT Q2 2022 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: 5G driving mobile upselling
INTERIM REPORT Q2 2022 5G driving mobile upselling 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 85% 86% 87% 89% 91% 92% 92% 93% 93% 93% – 29% (25% in Q1/22) of smartphones a
Slide 7: Elisa leading 5G
INTERIM REPORT Q2 2022 Elisa leading 5G • 5G coverage reached 81% of Finnish population in over 180 locations • Average billing increase of >EUR 3 in 5G upgrades intact • In Estonia we succeeded in the 3.5 GHz band 5G spectrum auction and won the efficient 130 MHz of spectrum according to our target
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q2 2022 Expansion of digital service businesses continued Domestic digital services International digital services • Entertainment services • Elisa IndustrIQ – Elisa Viihde Original Series Man Who Died (Mies joka kuoli) launched – Utility company Enel chose camLine, sedApta and Elisa
Slide 9: A sustainable future through digitalisation
INTERIM REPORT Q2 2022 A sustainable future through digitalisation • Q2 highlights – Elisa recognised as one of the 16 (out of 150) top performing digital companies in the recent Greening Digital Companies: Monitoring Emissions and Climate Commitments report (International Telecommunication Union (I
Slide 10: Outlook and guidance for 2022
INTERIM REPORT Q2 2022 Outlook and guidance for 2022 Growth in the Finnish economy is expected to continue; however, the outlook for GDP growth has deteriorated from the beginning of the year. There are increasing levels of uncertainty relating to Russia’s war in Ukraine, such as inflation, energy p
Slide 11: Financial review Q2 2022
Nise Financial review Q2 2022
Slide 12: Growth in revenue and earnings continuing
INTERIM REPORT Q2 2022 Growth in revenue and earnings continuing EUR million 1) Q2/22 Q2/21 Change % Q2 2022 YoY revenue change: €37m Revenue 521.5 484.3 37.2 7.7% -3 Other operating income 1.1 3.0 -1.9 -63.2% Materials and services -199.0 -181.0 -18.0 9.9% 7 Employee expenses -97.6 -98.7 1.1 -1.1%
Slide 13: Growth in Estonia continues
INTERIM REPORT Q2 2022 Growth in Estonia continues • Revenue and EBITDA improved Revenue Revenue. €m YoY change. % 11.0% – Revenue +9% 9.3% 8.4% 8.2% 8.1% • Mobile services • Equipment sales – EBITDA growth +2% – Mobile post-paid base +11,600, pre-paid -300 46.7 48.7 53.0 49.3 51.4 Q2/21 Q3/21 Q4/21
Slide 14: Q2 CAPEX lower, full year guidance intact
INTERIM REPORT Q2 2022 Q2 CAPEX lower, full year guidance intact • CAPEX €67m (67), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €53m (64) 13% 12% 14% 10% 10% – Consumer €45m (42) – Corporate €22m (25) 75 64 60 50 53 • Main CAPEX areas Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 – 5
Slide 15: Cash flow effected by NWC change
INTERIM REPORT Q2 2022 Cash flow effected by NWC change • Q2 cash flow €82m (101) Cash flow and comparable cash flow, €m Comparable • Q2 comparable cash flow €81m (101) 101 89 87 81 + Higher EBITDA and lower CAPEX 66 – NWC change, Estonian 5G licence 101 86 85 82 53 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Cas
Slide 16: Efficient capital structure and good returns
INTERIM REPORT Q2 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 2.0 – Net debt / EBITDA 2.0× (target 1.5–2×) 1,431 – Equity ratio 35.3% (target >35%) 1,068 1,184 1,207 1,219 2018 2019 2020 2021 Q2/202
Slide 17: Q&A
Q&A
Slide 18: P&L by quarter
APPENDIX P&L by quarter EUR million Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Revenue 521.5 511.4 535.5 496.5 484.3 481.6 498.2 467.5 460.8 YoY growth 7.7% 6.2% 7.5% 6.2% 5.1% 2.9% 2.2% 0.6% 2.0% Other operating income 1.1 0.9 1.8 1.6 3.0 2.5 1.6 1.3 0.6 Materials and services -199.0 -18
Slide 19: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q2/22 Q2/21 Change1) % H1/22 H1/21 Change1) % 2021 EBITDA 177 166 11 7% 354 336 19 6% 697 Change in receivables -17 5 -22 26 28 -2 -32 Change in inventories -3 1 -4 -9 -6 -3 51 % -18 Change in payables 6 13 -7 -56 % -52 -17 -35 201 % 53 Change in NWC -14
Slide 20: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 EBITDA 177 177 176 186 166 170 171 180 168 Change in receivables -17 43 -53 -6 5 23 -20 0 8 Change in inventories -3 -6 -9 -2 1 -7 -2 9 -10 Change in payables 6 -58 73 -3 13 -30 37 -15 2 Change in NWC -14
Slide 21: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Bonds and notes 890 889 888 887 886 885 1 058 1 057 759 Commercial papers 180 140 0 55 130 103 20 152 307 Schuldschein 0 100 100 100 100 100 Loans from financial institutions 353 253 2
Slide 22: 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