Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q3 2023 Earnings Presentation
23 slides from Ally Financial's earnings presentation, Oct 18, 2023
Slide 1: Interim Report Q3 2023
Interim Report Q3 2023 19 October 2023
Slide 2: Q3 2023 highlights
INTERIM REPORT Q3 2023 Q3 2023 highlights • Revenue grew by 2.0% • EBITDA up by 2.4% • Mobile service revenue increased by 4.2% • International digital services revenue grew by 2%. Customer delays in projects due to current economic environment. • In Finland, post-paid churn increased slightly to 14
Slide 3: Good performance continuing
INTERIM REPORT Q3 2023 Good performance continuing Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 7.6% 5.1% 5.5% Increase 6.9% 5.4% 5.4% • 5G upselling 2.2% 2.0% 4.9% 4.2% • Mobile services continuing • Fixed services • Product changes 534 563 540 533 545 233 234 235 2
Slide 4: Good growth in consumer segment, headwinds in corporate
INTERIM REPORT Q3 2023 Good growth in consumer segment, headwinds in corporate Revenue and EBITDA1) Consumer Customers Revenue, €m EBITDA, €m EBITDA-% Revenue +3% + Mobile and fixed services 40% 39% 41% + Digital services 38% 36% - Interconnection and traditional fixed-line services EBITDA +6% 330 1
Slide 5: Strategy execution
INTERIM REPORT Q3 2023 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Migration to higher speeds continuing
INTERIM REPORT Q3 2023 Migration to higher speeds continuing • 49% (41%) of voice subscriptions at 5G smartphone and speed penetration1) >200 Mbps speeds1) • Speed matters. Upselling to higher speeds continuing. 71% 67% • 5G base is growing, 4G decreasing 64% 62% 59% 57% 55% 53% 51% 47% 49% 43% 45%
Slide 7: Elisa leading in 5G, increasing investments in fibre network
INTERIM REPORT Q3 2023 Elisa leading in 5G, increasing investments in fibre network • 5G coverage in Finland reached over 90% population coverage in over 250 towns and cities, and over 75% in Estonia • Average billing increase of over €3 in 5G upgrades intact • Spectrum released from the 3G network
Slide 8: General economic situation impacts IDS revenue growth
INTERIM REPORT Q3 2023 General economic situation impacts IDS revenue growth • YoY revenue growth lower due to customers delaying projects Revenue and YoY growth • For full-year 2023, 5–10% organic growth expected Revenue, €m YoY change, % • Organic, double-digit growth target remains • Strong compe
Slide 9: Solid performance in domestic & other digital services
INTERIM REPORT Q3 2023 Solid performance in domestic & other digital services Entertaining video services IT services and solutions Visual communications • New collaboration with Ruutu+ • Finnish Defence Forces granted • Demand for highly secure video service (owned by Finnish media Elisa a national
Slide 10: A sustainable future through digitalisation
INTERIM REPORT Q3 2023 A sustainable future through digitalisation Key ESG indicators 3Q23 3Q22 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -14.4 % -4.7 % Population coverage of >100 Mbps connections 90.9 % 83.2 % Proportion of female supervis
Slide 11: Upgraded outlook and guidance for 2023
INTERIM REPORT Q3 2023 Upgraded outlook and guidance for 2023 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, such as inflation, energy prices and global supply cha
Slide 12: Financial review Q3 2023
Nise Financial review Q3 2023
Slide 13: Growth in revenue and EBITDA
INTERIM REPORT Q3 2023 Growth in revenue and EBITDA EUR million 1) Q3/23 Q3/22 Change % 2022 Q3 2023 YoY revenue change €11m Revenue 544.7 534.0 10.7 2.0 % 2,130 -3 Other operating income 1.7 1.3 0.3 23.7 % 7 3 2 Materials and services -205.7 -208.4 2.7 -1.3 % -821 Employee expenses -97.1 -89.1 -8.0
Slide 14: Growth continuing in Estonia
INTERIM REPORT Q3 2023 Growth continuing in Estonia • Revenue growth 6.4% Revenue Revenue. €m YoY change. % • Mobile and fixed services 8.8% 8.6% 7.7% • EBITDA increase 8.3% 6.4% 5.3% • Mobile post-paid base +3,600, pre-paid -1,000 • Churn 10.8% (10.8 in Q2) 53.0 55.8 53.6 55.3 56.4 Q3/22 Q4/22 Q1/2
Slide 15: YTD CAPEX in line with guidance
INTERIM REPORT Q3 2023 YTD CAPEX in line with guidance • CAPEX €78m (67), excl. licences, lease CAPEX1) agreements and acquisitions €72m (63) CAPEX / sales1) % 16% 13% 12% 10% 12% • Consumer €51m (45) • Corporate €26m (22) 88 63 64 72 57 • Main CAPEX areas • 5G coverage increase • Fibre and other ne
Slide 16: Solid cash flow growth
INTERIM REPORT Q3 2023 Solid cash flow growth • Cash flow €107m (79), comparable €107m Cash flow and comparable cash flow, €m (87), +22% Comparable + NWC change, higher EBITDA 87 - CAPEX, interest payments 86 108 107 79 71 • Q1–Q3 comparable cash flow €286m, +22% Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Cash c
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q3 2023 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA • Net debt / EBITDA 1.8× (target 1.5–2×) 1.8 1.8 1.7 1.7 1.8 • Equity ratio 36.1% (target >35%) 1,207 1,219 1,276 1,356 1,184 • Return ratios at good le
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Revenue 544.7 532.7 539.7 562.6 534.0 521.5 511.4 535.5 496.5 YoY growth 2.0% 2.2% 5.5% 5.1% 7.6% 7.7% 6.2% 7.5% 6.2% Other operating income 1.7 1.3 4.5 3.5 1.3 1.1 0.9 1.8 1.6 Materials and services -205.7 -19
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q3/23 Q3/22 Change1) % 1-9/23 1-9/22 Change1) % 2022 EBITDA 199 194 5 2% 565 548 16 3% 733 Change in receivables 0 0 0 -27% 51 26 25 99% -16 Change in inventories 0 -9 9 -98% 7 -19 26 -139% -13 Change in payables 7 -9 16 -176% -44 -61 18 -29% 2 Change in
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 EBITDA 199 183 183 185 194 177 177 176 186 Change in receivables 0 7 44 -42 0 -17 43 -53 -6 Change in inventories 0 7 0 5 -9 -3 -6 -9 -2 Change in payables 7 8 -59 63 -9 6 -58 73 -3 Change in NWC 6 22 -14
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Bonds and notes 1,140 894 893 892 891 890 889 888 887 Commercial papers 152 241 159 125 169 180 140 0 55 Credit facility 70 100 0 0 0 0 100 100 100 Loans from financial institutions 10
Slide 23: 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