Slide 1: Elisa Communications Interim Report
Elisa Communications Interim Report April 1, 2002 – June 30, 2002
Slide 2: Group Business Proceeded Favourably in the Second Quarter of 2002
Group Business Proceeded Favourably in the Second Quarter of 2002 n Revenue growth of 23% exceeded clearly sector growth n EBITDA excluding one-time items grew 13% mainly contributed by core business n CAPEX was on a moderate level, CAPEX per Sales was 17% (23%) n Operative cash flow was turned posi
Slide 3: Elisa's View on the Changes in the Domestic Competition Environment
Elisa’s View on the Changes in the Domestic Competition Environment n Finland is the main market of Elisa n Elisa offers in the domestic market comprehensive telecommunication solutions tailored for the needs of Finnish customers n Already occurred player changes in the market of fixed network servi
Slide 4: Key Figures of Elisa Group Q2/2002
Key Figures of Elisa Group Q2/2002 Excluding one-time items EUR million Q2/02 Q2/01 change Q2/02* Q2/01** change Revenue 406 331 23 % 406 331 23 % EBITDA 86 75 - 86 76 13 % EBIT -32 15 - 6 19 -68 % Pre Tax Profit -48 3 - -11 7 - n Revenue growth 23 %. The new domestic group companies contributed EUR
Slide 5: Turn in Operative Cash Flow in H1/2002
Turn in Operative Cash Flow in H1/2002 Operative cash flow, EURm H1/2002 H1/2001 2001 Clean EBITDA 171 145 336 Change in working capital 11 -3 26 Investments in fixed assets -97 -135 -324 Net financial items -25 -22 -48 Taxes -13 -11 -30 Free operative cash flow 47 -26 -40 n Q2 CAPEX was kept on a m
Slide 6: Business Areas: Mobile Business Q2/2002
Business Areas: Mobile Business Q2/2002 Mobile Revenue EBITDA EBIT Service- and Q2/02 Q2/01 change Q2/02 Q2/01 change Q2/02 Q2/01 change network operators 181 177 3% 54 47 5 28 - Distribution companies 20 16 25 % 1 -1 - 0 -3 - Intra-SBA sales -9 -5 One-time items 1 26 4 Group bookings -10 -10 Total
Slide 7: Mobile Business (cont.)
Mobile Business (cont.) n Amount of subscribers of the network operator increased with 1% to about 1.29m subscriptions (1.28) due to the intensive sales efforts of the service operator itself n Amount of subscribers decreased with 4% compared with the previous quarter, as Telia switched their Dual s
Slide 8: The Remaining Leasing Liability of Radiolinja
The Remaining Leasing Liability of Radiolinja n Radiolinja has in the period of years 1990 – 1999 leased with long-term agreements a significant part of the mobile network in its exclusive use from local telephone companies in Finland n The UMTS delivery agreements executed by Radiolinja will reduce
Slide 9: Business Areas: Fixed Network Business Q2/2002
Business Areas: Fixed Network Business Q2/2002 Fixed network Revenue EBITDA EBIT Q2/02 Q2/01 change Q2/02 Q2/01 change Q2/02 Q2/01 change Service operator 170 7 -3 Network operator 80 42 16 Intra-SBA sales -69 One-time items 6 Group bookings 3 4 Total excl. one-offs 181 126 44 % 52 40 30 % 23 20 15
Slide 10: Fixed Network Business (cont.)
Fixed Network Business (cont.) n The amount of subscriptions in Elisa group was 1.14 million (0.76) n The broadband access market leadership was further enhanced. Market share of Elisa increased to about 35%. n The number of ADSL channels reached 43 900 (14 900) n The nationwide market share of Elis
Slide 11: Business Areas: Germany-based Business Q2/2002
Business Areas: Germany-based Business Q2/2002 Germany Revenue EBITDA EBIT Net result* Q2/02 Q2/01 Q2/02 Q2/01 Q2/02 Q2/01 Q2/02 Q2/01 Carrier-business 28 10 -4 -1 -19 -4 -17 -9 Mäkitorppa GmbH 0 3 0 -4 0 -4 0 -4 One-time items -4 6 -4 6 -4 Group bookings Total excl. one-offs 28 13 -4 -9 -13 -12 -11
Slide 12: Germany-based Business (continued)
Germany-based Business (continued) Revenue, EURm EBITDA Margin EBIT Margin 27,4 27,9 Q2/01* Q3/01 Q4/01 Q1/02 Q2/02 Q2/01* Q3/01 Q4/01 Q1/02 Q2/02 14,2 13,7 12,8 -14 % -71 % -56 % -66 % -63 % -65 % -92 % -97 % -100 % Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 -169 % n EBITDA margin improved compared to previous
Slide 13: Future Outlook
Future Outlook n In line with previous guidance, the Group's revenue is expected to grow faster than the sector in general in 2002 n In line with previous guidance, Euro value of EBITDA without one-time items is estimated to improve compared to 2001 n Operative cash flow, which already turned positi
Slide 14: Elisa Communications Interim Report
Elisa Communications Interim Report April 1, 2002 – June 30, 2002
Slide 15: Elisa Communications' Q2/2002 P&L
Elisa Communications’ Q2/2002 P&L Elisa Communications Group Excl. one-off items * EURm Q2/02 Q2/01 Q2/02 Q2/01 Revenue 406 331 406 331 Other income from operations 1 9 1 6 EBITDA 86 75 86 76 EBITDA margin 21 % 23 % 21 % 23 % Depreciation -98 -48 -64 -45 Goodwill depreciation -20 -12 -16 -12 EBIT -3
Slide 16: Key Figures of Elisa Communication
Key Figures of Elisa Communication Elisa Group Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Q1/01 EURm Revenue 406 384 386 389 331 333 EBITDA 86 78 183 91 75 76 EBITDA-% 21 % 20 % 47 % 23 % 23 % 23 % Adjusted EBITDA 86 86 97 91 77 68 Adj. EBITDA-% 21 % 22 % 25 % 23 % 23 % 20 % EBIT -32 -13 58 16 15 19 Adjusted EBI
Slide 17: Key Figures (cont.)
Key Figures (cont.) Business Areas Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Q1/01 Mobile ARPU, EUR 43,5 41,4 42,7 44,2 45,3 42,2 Churn, % 12,7 18,2 14,4 15,5 13,9 13,9 Subscriptions 1 289 016 1 348 710 1 356 204 1 295 280 1 281 577 1 392 000 EBITDA 55 52 47 58 47 46 EBITDA-% 29 % 30 % 28 % 33 % 27 % 29 % Leasi
Slide 18: Reconciliation of Clean Sales, EBITDA and EBIT
Reconciliation of Clean Sales, EBITDA and EBIT Sales, EBITDA and clean EBIT EURm Q2 2002 Sales 406 Other income 1 Opex -321 EBITDA 86 Depreciation -98 Goodwill depreciation -20 Write-off in Radiolinja 26 1) Write-off in fixed line business 6 2) Write-off in Elisa Kommunikation GmbH 6 3) Clean EBIT 6
Slide 19: Revenue, EBITDA and EBIT, and Clean EBITDA and EBIT by Business Areas, EURm
Revenue, EBITDA and EBIT, and Clean EBITDA and EBIT by Business Areas, EURm Mobile Revenue EBITDA EBIT Clean EBITDA Clean EBIT Service- and Q2/02 Q2/01 Q2/02 Q2/01 Q2/02 Q2/01 Q2/02 Q2/01 Q2/02 Q2/01 network operators 181 177 54 47 5 28 54 48 31 32 Distribution companies 20 16 1 -1 0 -3 1 -1 0 -3 In