Slide 1: Interim Report Q3 2024
Interim Report Q3 2024 18 October 2024
Slide 2: Q3 2024 highlights
INTERIM REPORT Q3 2024 Q3 2024 highlights • Revenue decreased by 2%, mainly due to net impact of acquisitions and disposals, lower equipment sales and regulated revenue • EBITDA up by 4% • Mobile service revenue increased by 4.8% • International digital services revenue increased by 25% • In Finland
Slide 3: Good EBITDA growth driven by MSR and efficiency
INTERIM REPORT Q3 2024 Good EBITDA growth driven by MSR and efficiency Revenue Mobile service revenue Revenue, €m YoY change, % Decrease MSR, €m YoY change,% • Business 4,2% 4,4% 5,8% 4,7% 4,8% • 5G upselling 2,0% 0,1% -1,0% 1,6% -1,6% disposals continuing • Regulated revenue • Product • Equipment s
Slide 4: EBITDA growth in both segments
INTERIM REPORT Q3 2024 EBITDA growth in both segments Revenue and EBITDA1) Consumer Customers Revenue, €m EBITDA, €m EBITDA-% Revenue -1% - End of video streaming cooperation (Viaplay) 43% 41% 41% 41% - Equipment sales 38% - Interconnection and traditional fixed-line services + Mobile services EBITD
Slide 5: Strategy execution
INTERIM REPORT Q3 2024 Strategy execution Strategic focus areas Mission Increase mobile and fixed service revenues A sustainable Grow digital service businesses future through digitalisation Improve efficiency and quality 5
Slide 6: Migration to higher speeds continuing
INTERIM REPORT Q3 2024 Migration to higher speeds continuing • 56% (49%) of voice subscriptions at >200 Mbps 5G smartphone and speed penetration1) speeds1) • Speed matters. Upselling to higher speeds continuing. • 5G base is growing, 4G decreasing 59% 57% 55% 55% 56% 53% 51% 51% 52% 45% 47% 41% 43%
Slide 7: Elisa leading in 5G, fibre network is expanding
INTERIM REPORT Q3 2024 Elisa leading in 5G, fibre network is expanding • 5G population coverage reached all municipalities in Finland. Population coverage over 95% in Finland and over 78% in Estonia. • Average billing increase of over €3 in 5G upgrades intact • Accelerated growth in standalone 5G (5
Slide 8: sedApta acquisition strengthens IDS business
INTERIM REPORT Q3 2024 sedApta acquisition strengthens IDS business • YoY revenue increased by 25% • Growth boosted by acquisitions Revenue and YoY growth • Good organic growth despite soft macro environment Revenue, €m YoY change, % • Growth in order intake continuing • Full-year double-digit organ
Slide 9: Good steps forward in developing domestic digital services
INTERIM REPORT Q3 2024 Good steps forward in developing domestic digital services Entertaining video services Strengthened competitiveness in IT and security services • New codec successfully implemented in Elisa Viihde reducing the amount of data transferred by up to 30% • First results from deploy
Slide 10: A sustainable future through digitalisation
INTERIM REPORT Q3 2024 A sustainable future through digitalisation Key ESG indicators 3Q24 3Q23 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -21.6 % -14.4 % Population coverage of >100 Mbps connections 95.2 % 90.9 % Proportion of female supervi
Slide 11: Outlook and guidance for 2024
INTERIM REPORT Q3 2024 Outlook and guidance for 2024 The development of the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, there is continuing uncertainty in global supply chains relating to Russia’s war in Ukraine and other conflicts.
Slide 12: Financial review Q3 2024
Nise Financial review Q3 2024
Slide 13: Good EBITDA growth continuing
INTERIM REPORT Q3 2024 Good EBITDA growth continuing EUR million 1) Q3/24 Q3/23 Change % 2023 Q3 2024 YoY revenue change: -€9m Revenue 535.9 544.7 -8.8 -1.6% 2,180 4 -4 Other operating income 1.1 1.7 -0.6 -35.6% 10 Materials and services -189.1 -205.7 16.5 -8.0% -818 -5 Employee expenses -93.2 -97.1
Slide 14: Profitability improved in Estonia
INTERIM REPORT Q3 2024 Profitability improved in Estonia • Revenue decreased by EUR 2m, -4% Revenue Revenue, €m YoY change, % • Decrease in equipment sales and interconnection revenue • Growth in service revenue 8,1% 9,4% 6,4% -5,0% -4,1% • EBITDA increase 4% • Sales mix change, cost efficiency meas
Slide 15: YTD CAPEX in line with guidance
INTERIM REPORT Q3 2024 YTD CAPEX in line with guidance • CAPEX €93m (78), excl. licences, lease CAPEX1) agreements and acquisitions €77m (72) CAPEX / sales1) % 16% 15% 14% 13% 11% • Consumer €67m (51) • Corporate €26m (26) 91 81 72 77 58 • Main CAPEX areas • 5G coverage increase • Fibre and other ne
Slide 16: Comparable cash flow improving
INTERIM REPORT Q3 2024 Comparable cash flow improving • Comparable cash flow €111m (107), increase 4% Cash flow and comparable cash flow, €m + Higher EBITDA, lower licence fee payments, positive NWC change Comparable 111 - Higher CAPEX 94 73 86 107 95 76 • YTD comparable cash flow €291m (286), +2% 6
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q3 2024 Efficient capital structure and good returns • Capital structure in accordance with target Net debt Net debt, €m Net debt / EBITDA • Net debt / EBITDA 1.7× (target 1.5–2×) 1,8 1,7 1,7 1,7 1,7 • Equity ratio 38% (target >35%) 1 207 1 219 1 276 1 304 1 298 • Return ratios at goo
Slide 18: Dividend payment in October
INTERIM REPORT Q3 2024 Dividend payment in October • 2nd tranche of €1.12 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth • Payment date: 30 October 2024 98% 94% 92% 93% 89% 90% 96% 95% 95% 92% 95% 4.7% 4.9% 5.4% 5,1% • Pay-out ratio: 95% 6.1% 5.7% 10.0% • Dividend yi
Slide 19: Q&A
Q&A
Slide 20: P&L by quarter
APPENDIX P&L by quarter EUR million Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Revenue 535.9 541.4 534.5 563.3 544.7 532.7 539.7 562.6 534.0 YoY growth -1.6% 1.6% -1.0% 0.1% 2.0% 2.2% 5.5% 5.1% 7.6% Other operating income 1.1 1.8 0.7 2.4 1.7 1.3 4.5 3.5 1.3 Materials and services -189.1 -
Slide 21: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison 1) 1) EUR million Q3/24 Q3/23 Change % 1-9/2024 1-9/2023 Change % 2023 EBITDA 206 199 7 4% 576 565 11 2% 756 Change in receivables 38 -0 39 90 51 39 -2 Change in inventories 2 -0 2 4 7 -3 15 Change in payables -28 7 -35 -65 -44 -21 2 Change in NWC 12 6 6 29 14 15 15
Slide 22: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 EBITDA 206 190 180 191 199 183 183 185 194 Change in receivables 38 3 48 -53 0 7 44 -42 0 Change in inventories 2 0 1 8 0 7 0 5 -9 Change in payables -28 12 -49 46 7 8 -59 63 -9 Change in NWC 12 15 1 1 6
Slide 23: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Bonds and notes 895 895 894 1,141 1,140 894 893 892 891 Commercial papers 191 230 183 35 152 241 159 125 169 Credit facility 0 40 70 0 70 100 0 0 0 Loans from financial institutions 20
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