Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Elisa Oyj Ord A — Q1 2024 Earnings Presentation
24 slides from Elisa Oyj Class A's earnings presentation, Apr 19, 2024
Slide 1: Interim Report Q1 2024
Interim Report Q1 2024 19 April 2024
Slide 2: Q1 2024 highlights
INTERIM REPORT Q1 2024 Q1 2024 highlights • Revenue decreased by 1% or €5m million due to business disposals, decrease in equipment sales and interconnection revenue • Comparable EBITDA up by 4% • Mobile service revenue increased by 6% • International digital services revenue increased by 2%, still
Slide 3: Good EBITDA growth driven by MSR and efficiency
INTERIM REPORT Q1 2024 Good EBITDA growth driven by MSR and efficiency Revenue Mobile service revenue Revenue, €m YoY change, % Decrease MSR, €m YoY change,% 5.5% • Business 4.9% 5.4% 5.8% • 5G upselling 2.2% 2.0% 0.1% 4.2% 4.4% -1.0% disposals continuing • Service number • Product regulation change
Slide 4: Growth in consumer segment, headwinds in corporate
INTERIM REPORT Q1 2024 Growth in consumer segment, headwinds in corporate Revenue and EBITDA1) Consumer Customers Revenue, €m EBITDA, €m EBITDA-% Revenue -1% - End of video streaming cooperation (Viaplay) 39% 41% 41% - Equipment sales 38% 38% - Interconnection and traditional fixed-line services + M
Slide 5: Strategy execution
INTERIM REPORT Q1 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 Q1 2024 Migration to higher speeds continuing • 52% (45%) of voice subscriptions at 5G smartphone and speed penetration1) >200 Mbps speeds1) • Speed matters. Upselling to higher speeds continuing. • 5G base is growing, 4G decreasing 64% 62% 59% 57% 55% 53% 51% 51% 52% 47% 49% 43% 45%
Slide 7: Elisa leading in 5G, increasing demand met in fibre network
INTERIM REPORT Q1 2024 Elisa leading in 5G, increasing demand met in fibre network • 5G population coverage reached over 93% in Finland and over 76% in Estonia • Average billing increase of over €3 in 5G upgrades intact • First in Finland to launch standalone 5G subscriptions, including standalone 5
Slide 8: General economic situation impacting IDS revenue growth
INTERIM REPORT Q1 2024 General economic situation impacting IDS revenue growth • YoY revenue increased slightly • customers still delaying some projects Revenue and YoY growth • Strong order backlog Revenue, €m YoY change, % • Double-digit organic growth target remains • Strong competitiveness and s
Slide 9: Solid performance in domestic digital services
INTERIM REPORT Q1 2024 Solid performance in domestic digital services Entertaining video services IT services and solutions • New Elisa Viihde original series The Icebreaker, • Strong demand continuing for Elisa’s generative AI Valhalla Project and Moneyshot selected among consulting & implementatio
Slide 10: A sustainable future through digitalisation
INTERIM REPORT Q1 2024 A sustainable future through digitalisation Key ESG indicators 1Q24 1Q23 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -30.6 % -9.0 % Population coverage of >100 Mbps connections 93.8 % 87.8 % Proportion of female supervis
Slide 11: Outlook and guidance for 2024
INTERIM REPORT Q1 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 e.g. inflation, energy prices and global supply chains relating to Russia’s w
Slide 12: Financial review Q1 2024
Nise Financial review Q1 2024
Slide 13: Good EBITDA growth continuing
INTERIM REPORT Q1 2024 Good EBITDA growth continuing EUR million 1) Q1/24 Q1/23 Change % 2023 Q1 2024 YoY revenue change: -€5m Revenue 534.5 539.7 -5.1 -1.0% 2,180 Other operating income 0.7 4.5 -3.8 -84.4% 10 -0 5 -7 Materials and services -185.2 -205.0 19.8 -9.7% -818 Employee expenses -109.7 -108
Slide 14: Equipment sales cut revenue in Estonia
INTERIM REPORT Q1 2024 Equipment sales cut revenue in Estonia • Revenue decreased by EUR 2.7m, -5.0% Revenue Revenue, €m YoY change, % • Decrease wholly impacted by equipment sales and interconnection 8.6% 7.7% 8.1% 6.4% -5.0% • EBITDA increased 1.2% • Despite inflation pressures • Mobile post-paid
Slide 15: CAPEX according to guidance
INTERIM REPORT Q1 2024 CAPEX according to guidance • CAPEX €68m (66), excl. licences, lease CAPEX1) agreements and acquisitions €58m (57) CAPEX / sales1) % 13% 16% 10% 12% 11% • Consumer €43m (44) • Corporate €25m (22) 91 64 72 57 58 • Main CAPEX areas • 5G coverage increase • Fibre and other networ
Slide 16: Cash flow growth continuing
INTERIM REPORT Q1 2024 Cash flow growth continuing • Comparable cash flow €86m (71), increase 21% Cash flow and comparable cash flow, €m + NWC change, lower licence payments Comparable - Higher taxes and interest, lower reported EBITDA 73 86 108 107 71 61 62 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Cash conver
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q1 2024 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 1.7 1.7 1.7 1.7 • Equity ratio 43.8% (target >35%) 1,207 1,219 1,276 1,304 1,260 • Return ratios at good le
Slide 18: Growing dividend for 10 consecutive years
INTERIM REPORT Q1 2024 Growing dividend for 10 consecutive years • Dividend 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: €361m
Slide 19: Q&A
Q&A
Slide 20: P&L by quarter
APPENDIX P&L by quarter EUR million Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Revenue 534.5 563.3 544.7 532.7 539.7 562.6 534.0 521.5 511.4 535.5 YoY growth -1.0% 0.1% 2.0% 2.2% 5.5% 5.1% 7.6% 7.7% 6.2% 7.5% Other operating income 0.7 2.4 1.7 1.3 4.5 3.5 1.3 1.1 0.9 1.8 Materials a
Slide 21: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q1/23 Q1/23 Change1) % 2023 EBITDA 180 183 -4 -2 % 756 Change in receivables 48 44 5 10 % -2 Change in inventories 1 0 1 171 % 15 Change in payables -49 -59 10 -17 % 2 Change in NWC 1 -14 15 15 Financials (net) -12 -8 -4 47 % -18 Taxes for the year -21 -
Slide 22: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 EBITDA 180 191 199 183 183 185 194 177 177 Change in receivables 48 -53 0 7 44 -42 0 -17 43 Change in inventories 1 8 0 7 0 5 -9 -3 -6 Change in payables -49 46 7 8 -59 63 -9 6 -58 Change in NWC 1 1 6 22
Slide 23: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Bonds and notes 894 1,141 1,140 894 893 892 891 890 889 Commercial papers 183 35 152 241 159 125 169 180 140 Credit facility 70 0 70 100 0 0 0 0 100 Loans from financial institutions 1
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