Slide 1: Ohjeita pohjan käyttämiseen
Ohjeita pohjan käyttämiseen
Slide 2: Agenda
Agenda CEO’s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO
Slide 3: CEO's review
CEO’s review • Q3 2012 financial and operational highlights • Segment review • Strategy execution • Outlook for 2012 3
Slide 4: Q3 2012 highlights
Q3 2012 highlights • Good Q3 performance, in accordance with our expectations • Profitability was at a good level • Revenue increased, earnings per share even more • Mobile subscription base continued to increase • Mobile usage continued to grow • Smartphone market growth accelerated • Elisa Viihde
Slide 5: Growth in revenue and earnings
Q3 2012 financial highlights Growth in revenue and earnings • Revenue € 387m (378) • EBITDA € 134m (135), 35% of 36 % revenue (36) 35 % 35 % 33 % 32 % 32 % 32 % 31 % 31 % • EBIT € 85m (82) • EPS € 0.38 (0.36) • CAPEX € 51m (45), 13% of revenue 401 • 1-9/12 CAPEX 12% of revenue 389 387 383 382 374 37
Slide 6: Strong subscription growth continued
Q3 2012 operational highlights Strong subscription growth continued • 89,300 new mobile subscriptions 4427 • Growth in both customer segments 4337 4094 4158 4244 • Strong growth in voice and mobile broadband subs 3898 3991 3797 • Estonia +17,000 subscriptions 3652 • Fixed broadband growth continued
Slide 7: Growth in mobile usage
Q3 2012 operational highlights Growth in mobile usage • Strongest growth in mobile data 1 790 1 804 1 797 1 768 • Outgoing minutes 1.8bn, at last year’s level 1 749 1 754 1 755 1 739 • 578m SMS, YOY growth 13% 1 707 • Churn* 17.2% (12.7) 18,1 % • Competition has remained keen 15,0 % 14,3 % 17,2 % 12
Slide 8: Business Segments
Business Segments
Slide 9: Growth in new services and mobile
Q3 2012 Cosumer Customers Growth in new services and mobile • Revenue € 244m (234) 35 % • Growth in mobile usage, smartphone sales and online 34 % 34 % 33 % services 32 % 32 % 31 % 31 % • Growth in Estonia 30 % • Decrease in fixed telephony business and mobile interconnection revenue • EBITDA € 83m
Slide 10: ICT services and mobile data are growing
Q3 2012 Corporate Customers ICT services and mobile data are growing • Revenue € 142m (144) 36 % 37 % 36 % • Growth in mobile data, ICT services and equipment 34 % 34 % 33 % sales 32 % 32 % 32 % • Decrease in mobile and fixed network businesses and mobile interconnection revenue • EBITDA € 51m (54)
Slide 11: Strategy execution
Strategy execution New services and new markets Strengthening market position in core markets Integration of One Elisa 11
Slide 12: Smartphone market growth accelerated
Smartphone market growth accelerated Penetrations in Elisa’s network in Finland • More than one out of four customer 50,0 % uses new type of smartphone 46,0 % 43,5 % • Smartphones top the list of most 39,5 % sold phones in September 35,5 % 1. Apple iPhone 5 32,0 % 28,0 % 2. Samsung Galaxy S III 27,0
Slide 13: Elisa Vahti Live – Real-time video picture
Elisa Vahti Live – Real-time video picture • High-quality video picture to smartphone or tablet • Includes voice • Easy to use • Last 24 hours recorded to the cloud • The service is developed in close cooperation with customers 13
Slide 14: Elisa integrates wallet into the mobile phone
Elisa integrates wallet into the mobile phone • New mobile payment service • Virtual payment card for web • Online and mobile applications • Enables money transfers between users • Makes life easier and payment faster • Student-owned Lyyra launches service to more than 100,000 students at year end 1
Slide 15: Elisa recognised for customer service
Elisa recognised for customer service • Elisa No 1 in The Best of the Year 2012 Customer service competition • In big corporate category • The recognition is an indication of the development of activities on the basis of customers' wishes 15
Slide 16: Demand for ICT services strengthened
Demand for ICT services strenghtened • IT service business growth continued • IT services e.g. to the Parliament • New generation cloud services for more than 250 municipalities through Kuntien Tiera • Video service deliveries grew strongly • Productivity-enhancing video services for example to City
Slide 17: Most comprehensive roaming agreements
Most comprehensive roaming agreements • Use of mobile services is affordable and as easy as in Finland • Elisa customers can use their mobile services in 200 countries • 418 cooperation operators 17
Slide 18: Outlook for 2012
Outlook for 2012 • Uncertainties in the general economy have also affected Finland. The macroeconomic environment in Finland is weaker than in 2011. • Competition remains challenging • Revenue at the same level as last year • EBITDA excluding one-offs at the same level and EBIT will improve from the
Slide 19: Agenda
Agenda CEO’s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO
Slide 20: Revenue and earnings growth continued
Revenue and earnings growth continued EUR million Q3/12 Q3/11 Δ 2) Δ% 1-9/12 1-9/11 Δ 2) Δ% 2011 Revenue 387 378 9 2% 1 158 1 129 28 3% 1 530 Other operating income 2 1 4 4 6 Operating expenses -254 -243 -784 -759 -1 030 EBITDA 1) 134 135 -1 -0% 377 374 4 1% 506 EBITDA-% 35% 36 % 33% 33% 33% Depreci
Slide 21: Growth in services and equipment sales
Growth in services and equipment sales 387 -1 6 + New services (ICT and video) + Estonia 378 + Mobile - Mobile + New services - PSTN 10 (Online services) -6 + Estonia + Fixed broadband +/- Cable TV - PSTN + Volumes + Smartphones - MTR reduction Q3/11 Interconnection Equipmment Consumer Corporate Q3/
Slide 22: Equipment sales increased OPEX
Equipment sales increased OPEX Q3 Q4 Q1 Q2 Q3 • OPEX decreases in Q3 MEUR 11 11 12 12 12 • Interconnection and roaming Materials and 156 170 158 164 163 • Productivity improvements services • e.g. IT, network management Employee benefit 49 59 61 61 53 expenses • OPEX increases in Q3 Other operating
Slide 23: CAPEX/Sales in line with guidance
CAPEX/Sales in line with guidance • Q3 CAPEX EUR 51m (45) 20% 15% 14% 13% 13% • CAPEX/Sales 13% (12) 11% 12% 12% 15% 20 11% 11% • Consumer EUR 30m (27) 10% • Corporate EUR 21m (17) 5% 21 • 1-9 CAPEX EUR 143m (140) 4 25 21 21 0% 19 17 • CAPEX/Sales 12% (12) 16 18 18 -5% • Major CAPEX areas -10% 37 31
Slide 24: Cash flow
Cash flow EUR million Q3/12 Q3/11 Δ1) 1-9/12 1-9/11 Δ1) 2011 EBITDA 134 135 -1 377 374 4 506 Change in receivables -31 -21 -10 -8 -9 1 -19 Change in inventories -7 -3 -5 -14 -6 -8 -1 Change in payables 15 13 2 -10 -20 10 -10 Change in NWC -24 -10 -13 -32 -35 3 -31 Financials (net) -2 -12 10 -23 -30
Slide 25: Strong growth in Estonia continued
Strong growth in Estonia continued 32 % • Revenue EUR 30m (27) 30 % 30 % • Revenue growth 12% 27 % 27 % 27 % Strong growth in mobile subs 26 % • 25% • +75.500 YOY, +17.000 QOQ 23 % • Mobile broadband growing • EBITDA EUR 7m (8) 30 27 28 26 26 • Revenue growth 23 25 23 21 • CAPEX EUR 2m (2) • 3G Cove
Slide 26: Liquidity position remains good
Liquidity position remains good Bond and bank loan maturities After bond issuance on 25 September 2012 • Cash and undrawn committed facilities EUR 229m (249) • Revolving Credit Facilities EUR 300m • EUR 89m drawn 3Q/12 130 170 • Commercial Paper Program • EUR 170m in use 10 300 • Credit ratings cons
Slide 27: Bond issue and tender in Q3
Bond issue and tender in Q3 • Liability management • Proactive debt redemptions • Extension of the debt maturities • Tender offer for 2014 EUR 300m 4.75% bonds • Purchase price 105.687 • EUR 138.3m were tendered, 46% of the outstanding 2014 bonds • Accounting charge EUR 7.9m, amortised during the li
Slide 28: Capital structure in line with targets
Capital structure in line with targets • Capital structure • Net debt / EBITDA 1.7 • Gearing 110%, Equity ratio 41% 1,8 1,7 1,7 1,6 1,6 1,6 1,5 1,5 1,5 • Target setting • Net debt / EBITDA 1.5 – 2x • Equity ratio > 35% 845 793 788 909 874 725 776 752 754 45% 43% 45% 38% 40% 43% 42% 38% 41% Q3/10 Q4/
Slide 29: Q3 quarter results
rd quarter results 19th October | elisa | siindo
Slide 30: Consolidated cash flow statement
APPENDIX SLIDE Consolidated cash flow statement EUR million Q3 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Cash flow from operating activities Profit before tax 78 66 61 72 74 61 58 66 68 Adjustments to profit before tax 54 55 59 58 61 61 59 56 60 Change in working capital -
Slide 31: Financial situation
APPENDIX SLIDE Financial situation EUR Million 30 Sep 12 30 Jun 12 31 Mar 12 31 Dec 11 30 Sep 11 30 Jun 11 31 Mar 11 31 Dec 10 30 Sep 10 Interest-bearing debt Bonds and notes 375 375 375 375 375 600 600 599 598 Commercial papers 170 198 184 189 160 160 120 102 68 Loans from financial institutions 22