Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q1 2023 Earnings Presentation
24 slides from Ally Financial's earnings presentation, Apr 19, 2023
Slide 1: Interim Report Q1 2023
Interim Report Q1 2023 20 April 2023
Slide 2: Q1 2023 highlights
INTERIM REPORT Q1 2023 Q1 2023 highlights • Revenue grew by 5.5% • EBITDA up by 3.5% • Mobile service revenue increased by 4.9% • In Finland, post-paid churn decreased to 14.9% (16.2% in Q4 2022) • Post-paid subscriptions grew by 19,400. M2M and IoT subscription base grew by 26,400. • Fixed broadban
Slide 3: Solid performance despite challenging circumstances
INTERIM REPORT Q1 2023 Solid performance despite challenging circumstances Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 6.8% 7.2% 6.9% 5.4% Increase 4.9% • 5G upselling 6.2% 7.7% 7.6% 5.1% 5.5% • Mobile and fixed continuing services • Product changes • Digital servic
Slide 4: Growth continuing in all business areas
INTERIM REPORT Q1 2023 Growth continuing in all business areas Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +4% + Mobile and fixed services + Digital services 39% 38% 40% 36% 38% + Equipment sales - Interconnection and traditional fixed-line services 313 121 319 12
Slide 5: Strategy execution
INTERIM REPORT Q1 2023 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Migration to higher speeds continuing
INTERIM REPORT Q1 2023 Migration to higher speeds continuing 5G smartphone and speed penetration • 45% (36%) of voice subscriptions at >200 Mbps speeds 77% 74% 71% 67% 64% – Speed matters. Upselling to higher speeds continuing. 62% 59% 57% 55% – 5G base is growing, 4G slightly decreasing 45% 43% 41%
Slide 7: Elisa leading in 5G, expansion of fiber network continuing
INTERIM REPORT Q1 2023 Elisa leading in 5G, expansion of fiber network continuing • 5G coverage – Finland: 88% population coverage – Estonia: over 70% population coverage • Average billing increase of over €3 in 5G upgrades intact • Elisa deploying Europe’s first distributed and fully automated 5G e
Slide 8: Strong growth continued in international digital services
INTERIM REPORT Q1 2023 Strong growth continued in international digital services • Good order intake: YTD +35% YoY Revenue and YoY growth • We aim to continue strong double-digit organic growth Revenue, €m YoY change, % and accelerate growth with M&As • Q1 double digit YoY growth 50.0% • Record high
Slide 9: Solid performance in domestic & other digital services
INTERIM REPORT Q1 2023 Solid performance in domestic & other digital services Entertaining video services IT services and solutions Visual communications • Elisa Viihde original series Pohjolan • Elisa one of three companies entitled • Demand for visual communication Laki and The Invincibles to be c
Slide 10: A sustainable future through digitalisation
INTERIM REPORT Q1 2023 A sustainable future through digitalisation Key ESG indicators 1Q23 1Q22 4Q21 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -9.0 % -8.8 % - Population coverage of >100 Mbps connections 87.8 % 77.0 % 72.6 % Proportion of fe
Slide 11: Outlook and guidance for 2023
INTERIM REPORT Q1 2023 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 Q1 2023
Nise Financial review Q1 2023
Slide 13: Growth in revenue and earnings continuing
INTERIM REPORT Q1 2023 Growth in revenue and earnings continuing EUR million 1) Q1/23 Q1/22 Change % 2022 Revenue 539.7 511.4 28.3 5.5% 2,130 Q1 2023 YoY revenue change €28m Other operating income 4.5 0.9 3.5 - 7 -2 Materials and services -205.0 -189.5 -15.5 8.2% -821 8 Employee expenses -108.2 -100
Slide 14: Revenue growth continuing in Estonia
INTERIM REPORT Q1 2023 Revenue growth continuing in Estonia • Revenue growth 8.6% Revenue Revenue. €m YoY change. % – Mobile and fixed services 10.1% 8.8% 8.2% 8.6% – Equipment sales 5.3% • EBITDA decrease 0.4% – energy prices and wage increases 49.3 51.4 53.0 55.8 53.6 • Mobile post-paid base -1,00
Slide 15: CAPEX in line with guidance
INTERIM REPORT Q1 2023 CAPEX in line with guidance • CAPEX €66m (59), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €57m (50) 10% 10% 12% 16% 10% – Consumer €44m (38) – Corporate €22m (20) 88 53 63 57 50 • Main CAPEX areas Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 – 5G coverage inc
Slide 16: Growth in cash flow
INTERIM REPORT Q1 2023 Growth in cash flow • Q1 cash flow €71m (53) Cash flow and comparable cash flow, €m Comparable • Q1 comparable cash flow €71m (66) 82 87 + Higher EBITDA, NWC change 66 - CAPEX, taxes, interest payments 81 79 86 71 53 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Cash conversion Change in net
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q1 2023 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA 1.8 1.8 1.7 1.7 – Net debt / EBITDA 1.6× (target 1.5–2×) 1.6 – Equity ratio 42.6% (target >35%) 1,184 1,207 1,219 1,276 1,217 2019 2020 2021 2022 Q1/23
Slide 18: Growing dividend for 9 consecutive years
INTERIM REPORT Q1 2023 Growing dividend for 9 consecutive years • Dividend €2.15 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Dividend growth +4.9% 98% 94% 92% 93% 90% 96% 95% 95% 92% 89% – Total amount €345m 4.9% 5.4% 5,1% 6.1% 5.7% – Dividend was paid on 19 Apr
Slide 19: Q&A
Q&A
Slide 20: P&L by quarter
APPENDIX P&L by quarter EUR million Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Revenue 539.7 562.6 534.0 521.5 511.4 535.5 496.5 484.3 481.6 YoY growth 5.5% 5.1% 7.6% 7.7% 6.2% 7.5% 6.2% 5.1% 2.9% Other operating income 4.5 3.5 1.3 1.1 0.9 1.8 1.6 3.0 2.5 Materials and services -205.0 -22
Slide 21: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q1/23 Q1/22 Change1) % 2022 EBITDA 183 177 6 4% 733 Change in receivables 44 43 1 2% -16 Change in inventories 0 -6 7 -108% -13 Change in payables -59 -58 -1 1% 2 Change in NWC -14 -21 7 -27 Financials (net) -8 -7 -1 17% -10 Taxes for the year -19 -18 -1
Slide 22: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 EBITDA 183 185 194 177 177 176 186 166 170 Change in receivables 44 -42 0 -17 43 -53 -6 5 23 Change in inventories 0 5 -9 -3 -6 -9 -2 1 -7 Change in payables -59 63 -9 6 -58 73 -3 13 -30 Change in NWC -14
Slide 23: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Bonds and notes 893 892 891 890 889 888 887 886 885 Commercial papers 159 125 169 180 140 0 55 130 103 Schuldschein 0 0 0 0 100 100 100 100 100 Loans from financial institutions 253 25
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