Slide 1: Financial Results 2020
Q4 2020 Financial Results 2020 28 JANUARY 2021
Slide 2: Q4 2020 highlights
INTERIM REPORT Q4 2020 Q4 2020 highlights • Strong development continued • Revenue grew by 2% • EBITDA up by 2% • Mobile service revenue increased by 0.7% YoY and 1.4% up QoQ – Decrease in roaming revenue due to COVID-19 • Post-paid churn increased to 19.8% (17.6% in Q3) • Post-paid mobile subscript
Slide 3: Revenue growth 3%, EPS growth 6%
2020 HIGHLIGHTS Revenue growth 3%, EPS growth 6% Comparable figures CHANGE CHANGE Financials 2020 IN 2020 Operational KPIs 2020 IN 2020 Revenue €1,895m +2.8% Mobile service revenue €828m +0.5% EBITDA €685m +2.6% Mobile subs 4,798,100 +1,3% EBITDA-% 36.2% 0 pp Fixed broadband subs 701,100 +1.7% Earni
Slide 4: Solid performance continued amid COVID-19 situation
INTERIM REPORT Q4 2020 Solid performance continued amid COVID-19 situation Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 6,5% Increase • Roaming impact 3,5% 2,0% 2,2% 1,5% 2,1% 0,6% • Fixed and -0,2% 0,7% • 4G and 5G up- -0,5% mobile services selling continues • Digita
Slide 5: Good growth in Consumer Customers, roaming impacted on Corporate Customers
INTERIM REPORT Q4 2020 Good growth in Consumer Customers, roaming impacted on Corporate Customers Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +4% + Domestic digital services 41% + Mobile services 38% 39% 37% 36% - Roaming - Traditional fixed-line services 302 109
Slide 6: Strategy execution
INTERIM REPORT Q4 2020 Strategy execution Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 6
Slide 7: Up-selling of mobile subs continues, 5G proceeding
INTERIM REPORT Q4 2020 Up-selling of mobile subs continues, 5G proceeding Growth in 4G/5G smartphone penetration Smartphone and 4G speed penetration,% Smartphone penetr.1) 4G/5G speed penetr.2) 4G 50 Mbps penetr.2) • 89% of customers use a smartphone 81% 82% 83% 84% 84% 85% 85% 86% 87% 89% – 99% (98
Slide 8: Elisa leading in 5G
INTERIM REPORT Q4 2020 Elisa leading in 5G • 5G network launched in over 64 towns and cities covering over 2 million Finns • 5G devices offering increased to over 50 models, and 5G phones became the primary choice of Elisa's customers • Elisa achieved the world’s fastest 5G speeds on a commercial ne
Slide 9: Expansion of digital service businesses continued
INTERIM REPORT Q4 2020 Expansion of digital service businesses continued Domestic digital services International digital services • Elisa Viihde Viaplay integrated streaming • Elisa acquired camLine Group, a software service was successfully launched in solution provider for manufacturing industry D
Slide 10: Outlook and guidance for 2021
INTERIM REPORT Q4 2020 Outlook and guidance for 2021 The uncertainty in the macroeconomic environment is still prevailing. Competition in the Finnish telecommunications market remains keen. • Revenue slightly higher than in 2020 • Comparable EBITDA at same level or slightly higher than in 2020 • CAP
Slide 11: Financial review
Q4 2020 Financial review INTERIM REPORT Q4 2020
Slide 12: Growth in revenue and earnings
INTERIM REPORT Q4 2020 Growth in revenue and earnings EUR million 1) Q4/20 Q4/19 Change % Q4 2020 YoY revenue change, €11m Revenue 498 487 10.9 2.2 % -1 Other operating income 2 3 -1.4 -46.7 % -2 Materials and services -200 -192 -8.0 4.2 % 5 Employee expenses -83 -81 -1.8 2.2 % Other operating expen
Slide 13: EBITDA growth in Estonia
INTERIM REPORT Q4 2020 EBITDA growth in Estonia • EBITDA improved Revenue Revenue, €m YoY change, % – Revenue flat 10,0% 7,2% – EBITDA growth +3.1% 2,1% 0,0% 1,1% – Mobile post-paid base +2,400, pre-paid +300 – Churn 9.7% (9.7 in Q3) 47,8 44,4 43,1 45,0 47,8 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 EBITDA EBIT
Slide 14: Full-year CAPEX/sales 12%
INTERIM REPORT Q4 2020 Full-year CAPEX/sales 12% • CAPEX €65m (83), excl. shares, CAPEX1) CAPEX / sales1) % licences and lease agreements 15% 14% 13% 13% €64m (71) 10% – Consumer €43m (54) – Corporate €23m (29) 71 65 64 59 48 • FY CAPEX excl. shares, licences Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 and lease
Slide 15: Comparable cash flow strong in Q4
INTERIM REPORT Q4 2020 Comparable cash flow strong in Q4 • Q4 Cash flow €53m (55) Cash flow and comparable cash flow, €m 99 97 • Q4 comparable cash flow €99m (55) 85 – NWC change, higher EBITDA and lower CAPEX 83 91 73 affected positively 55 53 • 2020 comparable cash flow grew by Q4/19 Q1/20 Q2/20 Q
Slide 16: Efficient capital structure and good returns
INTERIM REPORT Q4 2020 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA – Net debt / EBITDA 1.8x (target 1.5–2x) 2,0 1,8 1,7 1,8 1,8 – Equity ratio 39.1% (target >35%) 1 184 1 207 1 124 1 073 1 068 • Return ratios at good le
Slide 17: Growing dividend seven consecutive years
INTERIM REPORT Q4 2020 Growing dividend seven consecutive years • Dividend proposal of €1.95 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Dividend growth +5.4% 98% 94% 92% 93% 96% 95% 89% 90% – Total amount €312m 5.7% 5.4% 6.1% – Ex-dividend date 8 April 2020 10.
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Revenue 498.2 467.5 460.8 468.1 487.3 464.9 451.6 439.7 YoY growth 2.2 % 0.6 % 2.0 % 6.5 % 3.5 % 2.4 % -1.3 % -2.2 % Other operating income 1.6 1.3 0.6 0.6 3.0 0.9 1.1 0.7 Materials and services -199.7 -175.6 -166.8
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q4/20 Q4/19 Change1) % 2020 2019 Change1) % EBITDA 171 168 3 2% 685 661 24 4% Change in receivables -20 -32 12 -38 % 11 -20 32 -155 % Change in inventories -2 -6 4 -67 % -1 -2 1 -40 % Change in payables 37 27 10 37 % 3 17 -14 -85 % Change in NWC 16 -11 27 13 -5 18 F
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 EBITDA 171 180 168 166 168 179 159 155 Change in receivables -20 0 8 23 -32 -2 5 9 Change in inventories -2 9 -10 2 -6 -1 -1 6 Change in payables 37 -15 2 -22 27 -9 5 -7 Change in NWC 16 -6 1 3 -11 -12 10 8 Fin
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Bonds and notes 1 058 1 057 759 758 757 943 941 939 Commercial papers 20 152 307 176 133 65 80 10 Loans from financial institutions 252 250 250 250 250 290 290 250 Financial leases 1) 97 100
Slide 23: Contacts
Contacts: Mr Vesa Sahivirta Ms Kati Norppa vesa.sahivirta@elisa.fi kati.norppa@elisa.fi +358 50 520 5555 +358 50 308 9773 investor.relations@elisa.fi
Slide 24: Forward-looking statements
INTERIM REPORT Forward-looking statements Statements made in this document relating to the future, including future performance and other trend projections, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and d