Slide 1: Interim Report Q1 2022
Interim Report Q1 2022 22 April 2022
Slide 2: Q1 2022 highlights
INTERIM REPORT Q1 2022 Q1 2022 highlights • Revenue grew by 6% • EBITDA up by 4% • Mobile service revenue increased by 6.8% • In Finland, post-paid churn increased to 17.2% (20.1% in Q4) • Post-paid subscriptions grew by 30,300, of which M2M and IoT subscriptions were 30,000 • Fixed broadband subscr
Slide 3: Strong performance continued
INTERIM REPORT Q1 2022 Strong performance continued Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 5,5% 6,1% 6,8% 5,1% 6,2% 7,5% 6,2% Increase 4,2% • 5G upselling 2,9% 0,9% continuing • Mobile and fixed services • Product changes • Digital services • Equipment sales 48
Slide 4: Good growth in Consumer Customers, strong improvement in Corporate Customers continued
INTERIM REPORT Q1 2022 Good growth in Consumer Customers, strong improvement in Corporate Customers continued Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +4% + Mobile services + Digital services 39% 39% 40% 39% 36% + Equipment sales - Interconnection and roaming,
Slide 5: Strategy execution
INTERIM REPORT Q1 2022 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Upselling of mobile subs continuing, driven by 5G
INTERIM REPORT Q1 2022 Upselling of mobile subs continuing, driven by 5G Growth in smartphone penetration Smartphone and 4G/5G speed penetration,% Smartphone penetr. 4G/5G speed penetr.1) 4G 50 Mbps penetr.1) • 93% of customers use a smartphone 85% 85% 86% 87% 89% 91% 92% 92% 93% 93% – 25% (20% in Q
Slide 7: Elisa leading 5G
INTERIM REPORT Q1 2022 Elisa leading 5G • 5G coverage reached 77% of Finnish population in over 160 locations – the widest coverage in Finland1) • Customers value 5G features; average price of mobile phones sold has increased 10% since 2019 • 5G customers have the highest NPS • Elisa joined forces w
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q1 2022 Expansion of digital service businesses continued Domestic digital services International digital services • Entertainment services • Elisa IndustrIQ – Elisa original series continues to arouse interest internationally – Strong growth continued in Q1 – Three Elisa Viihde origi
Slide 9: A sustainable future through digitalisation
INTERIM REPORT Q1 2022 A sustainable future through digitalisation • New sustainability targets emphasise the impact of handprint • Q1 highlights – Sustainability Finance Framework established – Ten-year wind power agreement – Assured Sustainability Report from 2021, TCFD report* – Sustainable Brand
Slide 10: Outlook and guidance for 2022
INTERIM REPORT Q1 2022 Outlook and guidance for 2022 Growth in the Finnish economy is expected to continue; however, the outlook for GDP growth has deteriorated from the beginning of the year. There are increasing levels of uncertainty relating to Russia’s war in Ukraine, such as inflation, energy p
Slide 11: Financial review Q1 2022
Nise Financial review Q1 2022
Slide 12: Growth in revenue and earnings continuing
INTERIM REPORT Q1 2022 Growth in revenue and earnings continuing EUR million 1) Q1/22 Q1/21 Change % Q1 2022 YoY revenue change €30m Revenue 511 482 29.8 6.2 % -1.6 -64.3 % -2 Other operating income 1 3 Materials and services -190 -182 -7.5 4.1 % 4 Employee expenses -100 -94 -5.8 6.2 % Other operati
Slide 13: Strong growth in Estonia
INTERIM REPORT Q1 2022 Strong growth in Estonia • Revenue and EBITDA improved Revenue Revenue. €m YoY change, % – Revenue +8% 8,2% 11,0% 8,4% 8,1% • Mobile and fixed services 2,3% • Equipment sales – EBITDA growth +3% – Mobile post-paid base +3,500, pre-paid +1,100 45,6 46,7 48,7 53,0 49,3 Q1/21 Q2/
Slide 14: CAPEX in line with guidance
INTERIM REPORT Q1 2022 CAPEX in line with guidance • CAPEX €59m (53), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €50m (48) 13% 12% 14% 10% 10% – Consumer €38m (32) – Corporate €20m (20) 75 64 60 48 50 • Main CAPEX areas Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 – 5G coverage inc
Slide 15: Growth in cash flow
INTERIM REPORT Q1 2022 Growth in cash flow • Q1 cash flow €53m (50) Cash flow and comparable cash flow, €m Comparable 101 89 87 • Q1 comparable cash flow €66m (60) 60 66 101 + Higher EBITDA, lower interest paid and lower licence fees 86 85 50 53 – NWC change, higher taxes and CAPEX Q1/21 Q2/21 Q3/21
Slide 16: Efficient capital structure and good returns
INTERIM REPORT Q1 2022 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA 1,7 1,8 1,8 1,7 – Net debt / EBITDA 1.6× (target 1.5–2×) 1,6 – Equity ratio 40.7% (target >35%) 1 068 1 184 1 207 1 219 1 176 2018 2019 2020 2021 Q1/202
Slide 17: Best-in-class dividend growth
INTERIM REPORT Q1 2022 Best-in-class dividend growth • Dividend of €2.05 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Dividend growth +5.1% 98% 94% 92% 93% 96% 95% 94% 89% 90% – Total amount €328m 5.4% 5,1% 5.7% – Payment date was 20 April 2022 6.1% 10.0% 7.1% 2,
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Revenue 511.4 535.5 496.5 484.3 481.6 498.2 467.5 460.8 468.1 YoY growth 6.2 % 7.5 % 6.2 % 5.1 % 2.9 % 2.2 % 0.6 % 2.0 % 6.5 % Other operating income 0.9 1.8 1.6 3.0 2.5 1.6 1.3 0.6 0.6 Materials and services -
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q1/22 Q1/21 Change1) % 2021 2020 EBITDA 177 170 7 4% 697 685 Change in receivables 43 23 20 -32 11 Change in inventories -6 -7 1 -12 % -18 -1 Change in payables -58 -30 -28 91 % 53 3 Change in NWC -21 -14 -7 50 % 3 13 Financials (net) -7 -11 4 -38 % -14
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 EBITDA 177 176 186 166 170 171 180 168 166 Change in receivables 43 -53 -6 5 23 -20 0 8 23 Change in inventories -6 -9 -2 1 -7 -2 9 -10 2 Change in payables -58 73 -3 13 -30 37 -15 2 -22 Change in NWC -21
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Bonds and notes 889 888 887 886 885 1 058 1 057 759 758 Commercial paper 140 0 55 130 103 20 152 307 176 Schuldschein 100 100 100 100 100 Loans from financial institutions 253 254 254
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