Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (November 2002)
13 slides from Elisa Oyj Class A's investor day presentation, Nov 28, 2002
Slide 1: Financial Figures
Financial Figures Vesa-Pekka Silaskivi CFO Elisa Communications’ Capital Markets Day 28 November 2002
Slide 2: Financial Figures, Key Topics
Financial Figures, Key Topics Financial Objectives Cash Flow Earnings Development Balance Sheet Policy Elisa’s Equity Policy 2
Slide 3: Financial Objectives
Financial Objectives Improving profitability Synergy benefits, cost cutting programmes (2002 onwards) EBITDA-% more than 25%, EBIT-% above 10% (2004 onwards) Solid financial position Positive operative cash flow (2002 onwards) Decreasing net debt, net debt / EBITDA ≤ 2x (remains as targe
Slide 4: Cash Flow from Operations is Positive
Cash Flow from Operations is Positive 40 EBITDA 30 Germany, Mobile, Fixed 20 CAPEX E U R m illio n 10 Controlled level 0 -10 Financial expenses -20 Lower net debt and interest rates -30 Working capital management -40 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Receivables, procurement,
Slide 5: Earnings Development
Earnings Development Estimated synergy benefits EUR 20 – 25 million in 2003 Market growth Change in 0% 1% 2% 3% 4% 5% prices EURm 4% 30 40 50 60 60 70 3% 20 30 40 50 60 60 2% 20 20 30 40 50 60 1% 10 20 20 30 40 50 0% 0 10 20 20 30 40 -1 % -10 0 10 20 20 30 -2 % -20 -10 0 10 20 20 -3 % -20 -20 -10
Slide 6: Balance Sheet Policy
Balance Sheet Policy Healthy balance sheet No “soft points”, no need for exceptional write downs in tangible assets Prudent depreciation schedules (e.g. mobile network 6-8 years, fixed network nodes 8-10 years) Lighter balance sheet Sale of non-core assets Working capital management Eq
Slide 7: Elisa's Equity Policy
Elisa’s Equity Policy No share issues considered for raising equity Use of share issuance rights for share exchange deals unlikely in 2003, but the rights are expected to be applied from AGM Application for share buy-back authorisation of the AGM in April 2003 is under consideration 7
Slide 8: Investor's Appendix
Investor’s Appendix Balance Sheet Structure Fixed Assets and Goodwill Net Debt Key Figures 8
Slide 9: Balance Sheet Structure
Balance Sheet Structure Divestments Interest bearing Tangible assets 944 897 debt Non interest 456 Goodwill bearing debt 624 Improving 79 Appropriations Other assets net working 111 Minority 114 capital Inventory 21 Improving Equity Receivables 424 profitability 664 Cash 80 Total assets, EUR 2207m E
Slide 10: Fixed Assets and Goodwill
Fixed Assets and Goodwill Fixed Depr. from Goodwill Gw depr. assets fixed assets Goodwill depr. time, EURm 9M 2002 9M 2002* 9M 2002 9M 2002* years Mobile business 365 71 474 29 15 Fixed network business 444 85 32 2 15 Germany-based business 160 17 105 9 10 Other companies 54 17 13 3 5 Total 1023 190
Slide 11: Net Debt Reduction in Progress
Net Debt Reduction in Progress Consolidation of Tropolys companies Sale of Instalia and change in debt business 900 reserving Sale of Elisa Management 850 directory target for the business year-end 800 (incl. sale of Soon and 750 Yomi directories) 700 650 600 550 500 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2
Slide 12: Key Figures of Elisa Communications
Key Figures of Elisa Communications Elisa Group Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Q1/01 EURm Revenue 388 406 384 386 389 331 333 EBITDA 51 86 78 183 91 75 76 EBITDA-% 13 % 21 % 20 % 47 % 23 % 23 % 23 % Clean EBITDA 84 86 86 97 91 77 68 Clean EBITDA-% 22 % 21 % 22 % 25 % 23 % 23 % 20 % EBIT -43 -32
Slide 13: Key Figures (cont.)
Key Figures (cont.) Business Areas Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Q1/01 Elisa Mobile Revenue 188 192 174 180 185 170 152 ARPU, EUR 43,0 43,5 41,4 42,7 44,2 45,3 42,2 Churn, % 14,0 12,7 18,2 14,4 15,5 13,9 13,9 Subscriptions 1 301 621 1 289 016 1 348 710 1 356 204 1 295 280 1 281 577 1 392 000 C