Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Q1 2018 Earnings Presentation
23 slides from Elisa Oyj Class A's earnings presentation, Apr 18, 2018
Slide 1: Interim Report Q1 2018
Q1 2018 Interim Report Q1 2018 18 APRIL 2018
Slide 2: Q1 2018 highlights
INTERIM REPORT Q1 2018 Q1 2018 highlights • Record quarter again – good growth in revenue and result • Revenue grew by 8% – Organic revenue growth 2% – Growth in both customer segments • Comparable EBITDA growth 8%, EPS growth 11% • Mobile service revenue growth 4% – Up-selling continues, good deman
Slide 3: Growth in revenue and EBITDA
INTERIM REPORT Q1 2018 Growth in revenue and EBITDA Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 13,3% Growth 5,5% • Up-selling 8,9% 5,0% 5,1% 6,6% 8,4% 8,1% 4,2% 3,9% • Mobile and • Premium digital services subscriptions • Acquisitions • Product changes • Estonia 416
Slide 4: Solid performance in both customer segments
INTERIM REPORT Q1 2018 Solid performance in both customer segments Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +7%, EBITDA +9% + Mobile service revenue + Acquisitions 35% 36% 36% 36% + Digital services and equipment sales 33% - Traditional fixed services 261 92 27
Slide 5: Strategy execution
INTERIM REPORT Q1 2018 Strategy execution Build value on data Accelerate digital service business Improve performance through customer intimacy and operational excellence 5
Slide 6: Growth in 4G and up-selling continues
INTERIM REPORT Q1 2018 Growth in 4G and up-selling continues Growth in 4G smartphone penetration Smartphone penetration1),% • 80% of customers use a smartphone 75% 77% 78% 79% 80% 73% 74% – 93% 4G-capable 70% 71% • 92% of phones sold 4G-capable Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 P
Slide 7: Outlook and guidance for 2018
INTERIM REPORT Q1 2018 Outlook and guidance for 2018 Macroeconomic environment has improved, but long-term structural challenges still remain. Competition remains challenging. • Revenue same level or slightly higher than in 2017 • Comparable EBITDA same level or slightly higher than in 2017 • CAPEX
Slide 8: Financial performance
Q1 2018 Financial performance INTERIM REPORT Q1 2018
Slide 9: Strong revenue and earnings growth continues
INTERIM REPORT Q1 2018 Strong revenue and earnings growth continues Q1 2018 P&L and growth1) Revenue YoY growth Revenue 8,1 % €450m 5,8 % 8,1 % EBITDA 8,3 % €156m 2,3 % Organic Starman and Santa Total Monica EBIT 9,8 % €97m Revenue change YoY, €34m PTP 8,6 % €92m 3 0 16 15 450 EPS 11,2 % €0.48 416 Q
Slide 10: Strong growth in Estonia
INTERIM REPORT Q1 2018 Strong growth in Estonia • Revenue +75%, EBITDA +74% Revenue Revenue, €m YoY change, % – Acquisitions 63,2 % 75,2 % 59,3 % 50,3 % – Mobile services 4,1 % • Keen competition – Post-paid voice churn 14.1% (13.5% in Q4) 24 39 40 42 42 – Slight decrease in mobile post-paid base, f
Slide 11: CAPEX back to 12% level
INTERIM REPORT Q1 2018 CAPEX back to 12% level • CAPEX1) €53m (53) CAPEX CAPEX / sales1) % Consumer, €m Corporate, €m – Consumer €35m (35) 15% 13% 13% 12% 12% – Corporate €17m (18) – CAPEX / sales 12% 23 – According to full-year guidance 18 19 19 17 35 41 38 48 35 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 – 4G
Slide 12: Solid cash flow continuing
INTERIM REPORT Q1 2018 Solid cash flow continuing • Q1 cash flow €52m (63) Cash flow, €m + Higher EBITDA + Lower investments in shares – Negative NWC change: lower payables 113 76 – Share-based incentive plan 63 48 52 • Strong cash conversion continues Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Cash conversion C
Slide 13: Efficient capital structure
INTERIM REPORT Q1 2018 Efficient capital structure • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA1) – Net debt / EBITDA 1.5–2x 2,1 – Equity ratio >35% 1,9 1,9 1,8 1,6 1 231 1 062 1 120 1 073 1 018 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 • Return ratios improved further Return
Slide 14: Competitive remuneration continues
INTERIM REPORT Q1 2018 Competitive remuneration continues • Dividend €1.65 per share Dividend Dividend per share, € Payout ratio1) % Dividend YoY growth – Dividend growth +10% 104% 94% 92% 93% 89% – Total amount €263m 10.0% – Payment date 24 April 2018 6.1% 7.1% 0.0% 1.5% • 1,65 Payout ratio1) 89% 1
Slide 15: Reporting changes and updates
INTERIM REPORT Q1 2018 Reporting changes and updates Mobile service revenue calculation Mobile termination rate changes – IFRS 15 change – Revenue impact approx. €10m in 2019 – Reclassification in revenue components – No effect on EBITDA – Restated mobile service revenue in the Elisa Operative Data
Slide 16: Q&A
Q&A
Slide 17: 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 18: Impact of changes to IFRS 2, 9 and 15 in Q1 2018
APPENDIX Impact of changes to IFRS 2, 9 and 15 in Q1 2018 P&L Balance sheet 1.1.2018 Cash flow statement IFRS 2 No material effect on P&L Reduced short term Cash payments shown in Share-based liabilities, increased equity adjustments in 2018. Earlier payment €14.5m. NWC change. IFRS 9 P&L interests
Slide 19: P&L by quarter
APPENDIX P&L by quarter € MILLION Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Revenue 449.6 472.5 453.9 445.1 415.9 434.0 418.7 393.0 390.0 YoY growth 8.1% 8.9% 8.4% 13.3% 6.6% 7.3% 6.1% 0.8% 2.5% Other operating income 1.1 2.6 1.5 0.8 0.7 1.5 1.8 0.6 0.5 Materials and services -170.0 -190
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison € MILLION Q1/18 Q1/17 CHANGE1) 2017 EBITDA 153 144 10 608 Change in receivables 7 12 -5 -59 Change in inventories 7 3 4 -11 Change in payables -26 -15 -11 45 Change in NWC -12 0 -12 -25 Financials (net) -12 -10 -2 -15 Taxes for the year -15 -14 -1 -66 Taxes for the
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter € MILLION Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 EBITDA 153 151 165 148 144 139 154 134 137 Change in receivables 7 -33 -15 -23 12 6 -30 19 2 Change in inventories 7 -5 0 -8 3 -2 -7 3 6 Change in payables -26 36 -4 28 -15 8 11 -2 -6 Change in NWC -12 -1 -
Slide 22: Debt structure
APPENDIX Debt structure € MILLION. AT THE END OF QUARTER Q1/18 Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Q3/16 Q2/16 Q1/16 Bonds and notes 763 767 766 766 765 594 594 593 593 Commercial papers 151 115 207 258 193 199 201 215 146 Loans from financial institutions 205 209 210 216 215 218 219 195 195 Financial lea
Slide 23: 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