Slide 1: Interim Report Q2 2021
Interim Report Q2 2021 1 6 J U LY 2 0 2 1
Slide 2: Q2 2021 highlights
INTERIM REPORT Q2 2021 Q2 2021 highlights • Good development continued • Revenue grew by 5% • Comparable EBITDA up by 2% • Mobile service revenue increased by 4.2% YoY • Post-paid churn at the same level 18.3% (18.3% in Q1) • Post-paid mobile subscription base increased by 36,700, of which M2M/IoT 3
Slide 3: Solid performance continued
INTERIM REPORT Q2 2021 Solid performance continued Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 5.1% Increase 4.2% • 5G and 4G up- 2.0% 0.6% 2.2% 2.9% 0.7% 0.9% selling continues • Acquisition and -0.2% -0.5% content • Product changes partnership • Mobile services • D
Slide 4: Good growth in Consumer Customers, better trend in Corporate Customers
INTERIM REPORT Q2 2021 Good growth in Consumer Customers, better trend in Corporate Customers Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +6% + Mobile services 41% + Entertainment services (organic and content partnership) 39% 37% 39% 39% + Equipment sales - Tradi
Slide 5: Strategy execution
INTERIM REPORT Q2 2021 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Up-selling of mobile subs continuing, driven by 5G
INTERIM REPORT Q2 2021 Up-selling of mobile subs continuing, driven by 5G Growth in smartphone penetration Smartphone and 4G speed penetration,% Smartphone penetr. 4G/5G speed penetr.1) 4G 50 Mbps penetr.1) • 92% of customers use a smartphone 83% 84% 84% 85% 85% 86% 87% 89% 91% 92% – 10% (7% in Q1)
Slide 7: Elisa leading in 5G
INTERIM REPORT Q2 2021 Elisa leading in 5G • Elisa continued its leadership in 5G, with the most extensive network in Finland – Available in over 110 towns and cities, population coverage over 50%, and up to 90% in the largest cities – Good customer demand for 5G continued, with an increase of over
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q2 2021 Expansion of digital service businesses continued Domestic digital services International digital services • Two new Elisa Viihde original series were launched • Record Q2 for camLine in invoiced services and successfully: Bad Apples and Bull by the Horns CalcuQuote for custom
Slide 9: Outlook and guidance for 2021
INTERIM REPORT Q2 2021 Outlook and guidance for 2021 The uncertainty in the macroeconomic environment is still prevailing. Competition in the Finnish telecommunications market remains keen. • Revenue slightly higher than in 2020 • Comparable EBITDA at same level or slightly higher than in 2020 • CAP
Slide 10: Financial review
Financial review INTERIM REPORT Q2 2021
Slide 11: Growth in revenue and earnings
INTERIM REPORT Q2 2021 Growth in revenue and earnings EUR million 1) Q2/21 Q2/20 Change % Q2 2021 YoY revenue change, €24m Revenue 484 461 23.5 5.1 % Other operating income 3 1 2.4 379.8 % -1 Materials and services -181 -167 -14.3 8.6 % Employee expenses 2) -99 -82 -16.9 20.7 % 6 Other operating exp
Slide 12: Strong growth in Estonia
INTERIM REPORT Q2 2021 Strong growth in Estonia • Revenue and EBITDA improved Revenue Revenue, €m YoY change, % 8.4% – Revenue +8.4% • Equipment sales 2.0% 1.1% 0.0% 2.3% • Fixed and mobile services – EBITDA growth +1.4% 43.1 45.0 47.8 45.4 46.7 – Mobile post-paid base +10,800, pre-paid -2,900 Q2/20
Slide 13: CAPEX inline with guidance
INTERIM REPORT Q2 2021 CAPEX inline with guidance • CAPEX €67m (75), excl. licences and lease CAPEX1) CAPEX / sales1) % agreements €64m (65) 14% 13% 13% 10% 13% – Consumer €42m (49) – Corporate €25m (26) 65 59 64 64 48 • H1 CAPEX excl. licences and lease Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 agreements €112
Slide 14: Strong cash flow
INTERIM REPORT Q2 2021 Strong cash flow • Q2 cash flow €101m (83) Cash flow and comparable cash flow, €m 99 • Q2 comparable cash flow €101m (85) 85 97 60 + NWC change, lower inventory and higher payables 91 101 83 – Higher taxes 53 50 – Lower reported EBITDA Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Comparable
Slide 15: Efficient capital structure and good returns
INTERIM REPORT Q2 2021 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA 1.8 1.8 2.0 2.0 – Net debt / EBITDA 2.0× (2.0, target 1.5–2×) 1.7 1,379 – Equity ratio 35.8% (target >35%) 1,068 1,184 1,207 1,332 2018 2019 2020 2Q20 2
Slide 16: Q&A
Q&A
Slide 17: P&L by quarter
APPENDIX P&L by quarter EUR million Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Revenue 484.3 481.6 498.2 467.5 460.8 468.1 487.3 464.9 451.6 YoY growth 5.1 % 2.9 % 2.2 % 0.6 % 2.0 % 6.5 % 3.5 % 2.4 % -1.3 % Other operating income 3.0 2.5 1.6 1.3 0.6 0.6 3.0 0.9 1.1 Materials and services
Slide 18: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q2/21 Q2/20 Change1) % 1H/21 1H/20 Change1) % 2020 EBITDA 166 168 -2 -1 % 336 334 2 1% 685 Change in receivables 5 8 -4 -43 % 28 31 -3 -10 % 11 Change in inventories 1 -10 11 -108 % -6 -8 2 -23 % -1 Change in payables 13 2 11 532 % -17 -20 3 -13 % 3 Change in NWC 19
Slide 19: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 EBITDA 166 170 171 180 168 166 168 179 159 Change in receivables 5 23 -20 0 8 23 -32 -2 5 Change in inventories 1 -7 -2 9 -10 2 -6 -1 -1 Change in payables 13 -30 37 -15 2 -22 27 -9 5 Change in NWC 19 -14
Slide 20: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Bonds and notes 886 885 1 058 1 057 759 758 757 943 941 Commercial papers 130 103 20 152 307 176 133 65 80 Schuldschein 100 100 Loans from financial institutions 253 253 252 250 250 25
Slide 21: Contacts
Contacts: Mr Vesa Sahivirta Ms Kati Norppa vesa.sahivirta@elisa.fi kati.norppa@elisa.fi +358 50 520 5555 +358 50 308 9773
Slide 22: Forward-looking statements
INTERIM REPORT Forward-looking statements Statements made in this document relating to the future, including future performance and other trend projections, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and d