Slide 1: INTE
: RE . a > INTE
Slide 2: Agenda
Agenda CEO’s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO
Slide 3: CEO's review
CEO’s review • Q1 2016 financial and operational highlights • Segment review • Strategy execution • Outlook and guidance for 2016 3
Slide 4: Q1 2016 highlights
Q1 2016 highlights • Revenue grew by 2% and EBITDA by 6% • Mobile service revenue grew by 9% • Mobile and fixed broadband subscriptions decreased, seasonality in mobile • Good profit growth in Consumer Customers segment again, Corporate Customer segment’s profit continued to improve • Demand for fas
Slide 5: Best ever Q1, revenue grew and profitability improved
Q1 2016 financial highlights Best ever Q1, revenue grew and profitability improved Revenue, €m and YoY change, % 2,8 % 4,8 % 2,5 % • Revenue €390m (381) 1,7 % • EBITDA €137m (129) 394 404 384 384 386 381 390 390 • EBIT €84m (76) • Earnings per share €0.39 (0.37) Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q
Slide 6: Mobile service revenue growth continues
Q1 2016 operational highlights Mobile service revenue growth continues • Mobile service revenue up by 9.1% Mobile service revenue, €m and YoY change, % 8,3% 11,3% 9,1% • Up-selling to higher speeds 3,8% 6,0% • More smartphones and data bundle subscriptions • Price changes 188 186 183 178 168 169 169
Slide 7: Business segments
Business segments NK
Slide 8: Q1 2016 Consumer Customers: Revenue and EBITDA increased
Q1 2016 Consumer Customers Revenue and EBITDA increased • Revenue €244m (236) Revenue, €m and YoY change, % 1,5% 3,6% 6,1% 3,5% • Strong growth in mobile service revenue • Growth in new services • Traditional fixed revenue, interconnection revenue and operator sales decreased 254 251 239 242 239 243
Slide 9: Q1 2016 Corporate Customers: EBITDA continued to improve
Q1 2016 Corporate Customers EBITDA continued to improve • Revenue €146m (145) Revenue, €m and YoY change, % 2,0% 1,4% 2,7% 0,8% • Growth in mobile service revenue and fixed revenue • Visual communication, equipment sales and operator sales decreased • Decrease in interconnection revenue 146 145 147
Slide 10: Strategy execution
Strategy execution Build value on data Accelerate new service businesses Improve performance with customer intimacy and operational excellence 10
Slide 11: Strong growth in 4G smartphones and data bundles
Strong growth in 4G smartphones and data bundles • 70% of customers use a smartphone 3G and 4G smartphone penetrations 1), % • 68% of smartphones are 4G-capable 68% 70% 63% 65% 66% 57% 60% 54% • Of all models sold in Q1 3G • 94% were smartphones, 99% 4G-capable (94% and 85% respectively in Q4) 4G Q2
Slide 12: Fanseat OTT service to international distribution
Fanseat OTT service to international distribution • Service includes several sports leagues and events • E.g. domestic basketball and ice hockey games • Also top European football games from Sweden, Denmark and Holland • Included in Elisa Viihde service – also available as an OTT service • Fanseat s
Slide 13: Elisa contributes to the digitalisation of the Finnish public sector
Elisa contributes to the digitalisation of the Finnish public sector • Real-time indoor positioning system for the Hospital District of Helsinki and Uusimaa • Effective monitoring of the location of the medical devices • Improves the safety of patients • Makes the work of the health care staff more
Slide 14: Outlook and guidance for 2016
Outlook and guidance for 2016 Macroeconomic environment still weak in 2016, competition remains challenging • Revenue at the same level as in 2015 • EBITDA excluding one-offs at the same level as in 2015 • CAPEX maximum 12% of revenue 14
Slide 15: Agenda
Agenda CEO’s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO
Slide 16: Growth continues
Growth continues EUR million, excl. one-offs Q1/16 Q1/15 Δ 1) Δ% 2015 • Revenue growth 2% Revenue 390 381 9 2% 1,569 EBITDA 137 129 536 • EBITDA growth 6% 8 6% EBITDA-% 35% 34% 34% • Mobile service revenue growth Depreciation and amortisation -220 -53 -53 • Productivity improvements EBIT 84 76 322 8
Slide 17: Growth in both business segments, MTR down
Growth in both business segments, MTR down • Consumer Customers • Growth in mobile and online services • Decrease in fixed voice and operator sales • Corporate Customers • Growth in mobile and fixed telecom services • Decrease in visual communications and operator sales Revenue change Q1 YoY, €m 3 -
Slide 18: Growth continues in Estonia
Growth continues in Estonia • Revenue €22.9m (21.7) Revenue, €m and YoY change, % • Growth in mobile service revenue and equipment sales 1,2% 4,6% 5,5% -2,1% • MTR cut to €0.01 (-10%) 1 July 2015 23,8 25,1 23,9 25,4 25,0 21,7 23,3 22,9 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 • EBITDA €7.5m (
Slide 19: Total expenses increased slightly
Total expenses increased slightly • Revenue increase €9m, expenses €2m Material and services (blue), employee (yellow) and other expenses (orange), €m, YoY change (black line) • Total OPEX EUR 254m (252) -0,5% 3,4% 6,2% 0,7% 45 44 44 43 43 • OPEX increased 63 39 54 65 41 67 69 39 59 71 67 • Equipmen
Slide 20: CAPEX according to guidance
CAPEX according to guidance • CAPEX €44m (52) Consumer (blue), Corporate (yellow), shares (orange) and licences (green) €m, CAPEX/sales (black line) % * • Consumer €25m (29) • Corporate €20m (22) 14% 12% 14% 12% 12% 12% 11% 11% • CAPEX / sales 11%, in line with guidance 28 13 14 1 1 3 9 24 20 22 21
Slide 21: Strong cash flow continues
Strong cash flow continues • Cash flow YoY change -€4m, Cash flow change, €m excluding share purchases +€4m 8 -10 -0 -0 1 6 -8 • Growth excl. share purchases 5.4% 68 64 • NWC change positive, but lower than in Q1/15 • Inventories down from Q4/15 peak • Lower payables Q1/15 EBITDA NWC Financials Taxe
Slide 22: Solid liquidity position remains
Solid liquidity position remains Bonds and bank loan maturities 31 March 2016 • Cash and undrawn committed credit Bonds (blue), loans (green), RCF (orange) and EIB loan (red), €m facilities €511m (361) • Revolving credit facilities fully undrawn • €150m loan commitment signed in October 130 • Commer
Slide 23: Capital structure in target and return ratios improved
Capital structure in target and return ratios improved • Net debt at target level Net debt (blue, €m), Net debt /EBITDA (orange line) 2,1 • Net debt / EBITDA 1.7x 2,0 2,0 1,9 1,9 • Gearing 118%, equity ratio 34% 1,8 1,8 1,7 • Target setting • Net debt / EBITDA 1.5–2x 1 075 1 043 1 001 934 1 075 991
Slide 24: Competitive remuneration continues
Competitive remuneration continues • Dividend €1.40 per share Dividend and pay-out ratio • Total €223m 126% 135% • Paid April 2016 101% 104% 98% 94% 92% • Payout ratio 92% 88% 1,42 1,32 1,40 • Authorisation for buyback of 5m shares 1,00 1,30 1,30 1,30 1,30 2009 2010 2011 2012 2013 2014 2015 2016 • D
Slide 25: Contacts
Contacts: Mr. Vesa Sahivirta vesa.sahivirta@elisa.fi Download the Elisa IR App +358 102 623 036
Slide 26: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison € million Q1/16 Q1/15 Δ1) Δ% 2015 EBITDA 137 129 8 6 % 532 Change in receivables 2 -5 7 -2 Change in inventories 6 5 1 -6 Change in payables -6 12 -18 7 Change in NWC 3 13 -10 -0 Financials (net) -10 -9 0 -18 Taxes for the year -13 -12 -54 Taxes for the previous yea
Slide 27: Cash flow by quarters
APPENDIX Cash flow by quarters € million Q1/16 Q4/15 Q3/15 Q2/15 Q1/15 Q4/14 Q3/14 Q2/14 EBITDA 137 128 145 131 129 125 142 127 Change in receivables 2 10 -22 15 -5 9 0 -14 Change in inventories 6 -12 4 -2 5 -4 0 1 Change in payables -6 -20 18 -3 12 4 -22 12 Change in NWC 3 -22 0 9 13 8 -22 -1 Finan
Slide 28: Debt structure
APPENDIX Debt structure € million, at the end of the quarter Q1/16 Q4/15 Q3/15 Q2/15 Q1/15 Q4/14 Q3/14 Q2/14 Bonds and notes 593 592 592 592 591 591 590 590 Commercial papers 146 171 229 219 169 210 200 217 Loans from financial institutions 195 200 200 205 205 211 211 216 Financial leases 27 28 29 3