Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q4 2023 Earnings Presentation
26 slides from Ally Financial's earnings presentation, Jan 19, 2024
Slide 1: Interim Report Q4 2023
Interim Report Q4 2023 26 January 2024
Slide 2: Q4 2023 highlights
INTERIM REPORT Q4 2023 Q4 2023 highlights • Revenue at the last year’s level mainly due to divestments • EBITDA up by 3.4% • Mobile service revenue increased by 4.4% • International digital services revenue declined by 8% resulting from customer delays in projects due to the current economic environ
Slide 3: A record year 2023: 2% revenue growth, 3% EBITDA growth
INTERIM REPORT Q4 2023 A record year 2023: 2% revenue growth, 3% EBITDA growth Comparable figures CHANGE CHANGE Financials 2023 IN 2023 Operational KPIs 2023 IN 2023 Revenue €2,180m +2.4% Mobile service revenue €962m +4.7% EBITDA €756m +2.8% Mobile subs 5,164,100 +1,5% EBITDA-% 34.7% +0.1 pp Fixed b
Slide 4: Good performance continuing
INTERIM REPORT Q4 2023 Good performance continuing Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 5.1% 5.5% Increase 5.4% 4.9% 5.4% • 5G upselling 2.2% 2.0% 0.1% 4.2% 4.4% • Mobile services continuing • Fixed services • Product changes Decrease • Divestments 563 540 53
Slide 5: Growth in consumer segment, headwinds in corporate
INTERIM REPORT Q4 2023 Growth in consumer segment, headwinds in corporate Revenue and EBITDA1) Consumer Customers Revenue, €m EBITDA, €m EBITDA-% Revenue +1% + Mobile services 39% 41% + Equipment sales 36% 38% 38% - Domestic and other digital services (streaming service cooperation) - Interconnectio
Slide 6: Strategy execution
INTERIM REPORT Q4 2023 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 6
Slide 7: Migration to higher speeds continuing
INTERIM REPORT Q4 2023 Migration to higher speeds continuing • 51% (43%) of voice subscriptions at 5G smartphone and speed penetration1) >200 Mbps speeds1) • Speed matters. Upselling to higher speeds continuing. 67% • 5G base is growing, 4G decreasing 64% 62% 59% 57% 55% 53% 51% 49% 51% 45% 47% 41%
Slide 8: Elisa leading in 5G, increasing demand met in fibre network
INTERIM REPORT Q4 2023 Elisa leading in 5G, increasing demand met in fibre network • 5G population coverage reached over 92% in Finland and over 75% in Estonia • Average billing increase of over €3 in 5G upgrades intact • 5G standalone network is now available for consumers in the capital area in Fi
Slide 9: General economic situation impacting IDS revenue growth
INTERIM REPORT Q4 2023 General economic situation impacting IDS revenue growth • YoY revenue declined due to customers delaying projects Revenue and YoY growth • 2023 YoY growth +2% Revenue, €m YoY change, % • Record order intake and order backlog in Q4 • Double-digit organic growth target remains •
Slide 10: Solid performance in domestic digital services
INTERIM REPORT Q4 2023 Solid performance in domestic digital services Entertaining video services IT services and solutions • The renewed Elisa Viihde Plus service launched at the end • Demand for cyber security services increased during Q4 of October with a strong start, offering an improved – Expe
Slide 11: A sustainable future through digitalisation
INTERIM REPORT Q4 2023 A sustainable future through digitalisation Key ESG indicators 4Q23 4Q22 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -26.1 % -5.7 % Population coverage of >100 Mbps connections 92.5 % 86.2 % Proportion of female supervis
Slide 12: Outlook and guidance for 2024
INTERIM REPORT Q4 2023 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, uncertainty relating to Russia's war in Ukraine and other conflicts – such as inflation, energy prices and globa
Slide 13: Financial review Q4 2023
Nise Financial review Q4 2023
Slide 14: Revenue impacted by divestments, EBITDA growth continuing
INTERIM REPORT Q4 2023 Revenue impacted by divestments, EBITDA growth continuing EUR million 1) Q4/23 Q4/22 Change % 2023 Q4 2023 YoY revenue change: €1m Revenue 563.3 562.6 0.7 0.1% 2,180 Other operating income 2.4 3.5 -1.1 -30.9% 10 --4 1 -2 Materials and services -213.7 -223.9 10.2 -4.5% -818 5 E
Slide 15: Growth continuing in Estonia
INTERIM REPORT Q4 2023 Growth continuing in Estonia • Revenue growth 8.1% Revenue Revenue. €m YoY change. % • Mobile services and equipment sales 8.6% 7.7% 8.1% • EBITDA increase 1.2% 5.3% 6.4% • Wage and energy price inflation • Mobile post-paid base -800, pre-paid -1,200 55.8 53.6 55.3 56.4 60.3 •
Slide 16: FY CAPEX / sales was 13%, last two years' average 12%
INTERIM REPORT Q4 2023 FY CAPEX / sales was 13%, last two years’ average 12% • CAPEX €109m (97), excl. licences, lease CAPEX1) agreements and acquisitions €91m (88) CAPEX / sales1) % 16% 13% 16% 10% 12% • Consumer €72m (62) • Corporate €36m (35) 88 91 64 72 57 • Main CAPEX areas • 5G coverage increa
Slide 17: Q4 cash flow cut by NWC, FY cash flow record high
INTERIM REPORT Q4 2023 Q4 cash flow cut by NWC, FY cash flow record high • Comparable cash flow €73m (86), -15% Cash flow and comparable cash flow, €m - NWC, higher CAPEX Comparable + Higher EBITDA, lower taxes 73 86 108 107 71 61 • Comparable FY cash flow €361m (321), +12% + NWC, higher EBITDA, low
Slide 18: Efficient capital structure and good returns
INTERIM REPORT Q4 2023 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA • Net debt / EBITDA 1.7× (target 1.5–2×) 1.8 1.8 1.7 1.7 1.7 • Equity ratio 41.6% (target >35%) 1,184 1,207 1,219 1,276 1,304 • Return ratios at good le
Slide 19: Competitive remuneration continues
INTERIM REPORT Q4 2023 Competitive remuneration continues • Dividend proposal of €2.25 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth • Two instalments: €1.13 and €1.12 98% 94% 92% 93% • Dividend growth: +4.7% 89% 90% 96% 95% 95% 92% 95% 4.7% 4.9% • Total amount: €36
Slide 20: Q&A
Q&A
Slide 21: P&L by quarter
APPENDIX P&L by quarter EUR million Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Revenue 563,3 544.7 532.7 539.7 562.6 53.0 52.,5 511.4 53.,5 YoY growth 0.1% 2.0% 2.2% 5.5% 5.1% 7.6% 7.7% 6.2% 7.5% Other operating income 2.4 1.7 1.3 4.5 3.5 1.3 1.1 0.9 1.8 Materials and services -213.7 -205
Slide 22: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q4/23 Q4/22 Change1) % 2023 2022 Change1) % EBITDA 191 185 6 3% 756 733 23 3% Change in receivables -53 -42 -11 27% -2 -16 14 Change in inventories 8 5 2 42% 15 -13 28 Change in payables 46 63 -17 -27% 2 2 0 Change in NWC 1 27 -26 15 -27 43 Financials (n
Slide 23: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 EBITDA 191 199 183 183 185 194 177 177 176 Change in receivables -53 0 7 44 -42 0 -17 43 -53 Change in inventories 8 0 7 0 5 -9 -3 -6 -9 Change in payables 46 7 8 -59 63 -9 6 -58 73 Change in NWC 1 6 22 -
Slide 24: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Bonds and notes 1,141 1,140 894 893 892 891 890 889 888 Commercial papers 35 152 241 159 125 169 180 140 0 Credit facility 0 70 100 0 0 0 0 100 100 Loans from financial institutions 10
Slide 25: Q&A
Q&A
Slide 26: 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