Slide 1: Interim Report Q3 2021
Interim Report Q3 2021 20 OCTOBER 2021
Slide 2: Q3 2021 highlights
INTERIM REPORT Q3 2021 Q3 2021 highlights • Revenue grew by 6% • EBITDA up by 3% • Mobile service revenue increased by 5.5% YoY • In Finland, post-paid churn decreased to 16.3% (18.3% in Q2) • Post-paid mobile subscription base increased by 53,700, of which M2M/IoT account for 38,600 • Fixed broadba
Slide 3: Strong performance continued
INTERIM REPORT Q3 2021 Strong performance continued Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 5,5% 5,1% 6,2% Increase 4,2% • 5G up-selling 0,6% 2,2% 2,9% 0,7% 0,9% continues • Acquisition and -0,5% content • Product changes partnership • Mobile services • Domestic
Slide 4: Good growth in Consumer Customers, improving trend in Corporate Customers continued
INTERIM REPORT Q3 2021 Good growth in Consumer Customers, improving trend in Corporate Customers continued Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +5% + Mobile services 41% + Entertainment services (organic and content partnership) 37% 39% 39% 40% + Equipment
Slide 5: Strategy execution
INTERIM REPORT Q3 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 Q3 2021 Up-selling 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) • 92% of customers use a smartphone 84% 84% 85% 85% 86% 87% 89% 91% 92% 92% – 14% (10% in
Slide 7: Elisa leading in 5G
INTERIM REPORT Q3 2021 Elisa leading in 5G • Based on NPS, 5G customers are more satisfied • 5G continued to be the first choice for customers • New 5G customers increase billing on average more than €3 per month • 5G services for prepaid launched • Latest operator study*: Elisa’s 5G network has the
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q3 2021 Expansion of digital service businesses continued Domestic digital services International digital services • Entertainment services • Elisa IndustrIQ – Elisa Viihde original series Mister8 won the top prize for best series at – TenForce to join Elisa IndustrIQ team and complem
Slide 9: Upgraded outlook and guidance for 2021
INTERIM REPORT Q3 2021 Upgraded outlook and guidance for 2021 The outlook for the macroeconomic environment has improved in Finland. Competition in the Finnish telecommunications market remains keen. • Revenue slightly higher than in 2020 • Comparable EBITDA slightly higher than in 2020 • CAPEX* max
Slide 10: Financial review
Financial review INTERIM REPORT Q3 2021
Slide 11: Growth in revenue and earnings continuing
INTERIM REPORT Q3 2021 Growth in revenue and earnings continuing EUR million 1) Q3/21 Q3/20 Change % Q3 2021 YoY revenue change €29m Revenue 496 468 29.0 6.2 % -1 Other operating income 2 1 0.3 25.1 % 7 Materials and services -188 -176 -12.6 7.2 % Employee expenses -80 -74 -6.3 8.5 % Other operating
Slide 12: Strong growth in Estonia
INTERIM REPORT Q3 2021 Strong growth in Estonia • Revenue and EBITDA improved Revenue Revenue. €m YoY change. % 8,4% 8,2% – Revenue +8.2% 2,3% • Mobile and fixed services 1,1% 0,0% • Equipment sales – EBITDA growth +4.5% 45,0 47,8 45,4 46,7 48,7 – Mobile post-paid base +8,400, pre-paid +2,300 Q3/20
Slide 13: CAPEX inline with guidance
INTERIM REPORT Q3 2021 CAPEX inline with guidance • CAPEX €64m (75), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €60m (59) 13% 13% 10% 13% 12% – Consumer €40m (46) – Corporate €23m (29) 59 64 64 60 48 • YTD CAPEX excl. licences, lease Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 agr
Slide 14: Cash flow
INTERIM REPORT Q3 2021 Cash flow • Q3 cash flow €86m (91) Cash flow and comparable cash flow, €m Comparable • Q3 comparable cash flow €89m (97) 99 101 97 89 + Higher EBITDA 60 – NWC change, higher inventory, higher taxes and interest paid 91 101 86 53 50 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 • YTD comparabl
Slide 15: Efficient capital structure and good returns
INTERIM REPORT Q3 2021 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA 1,8 1,7 1,8 1,8 1,9 – Net debt / EBITDA 1.9× (target 1.5–2×) – Equity ratio 38.5% (target >35%) 1 073 1 068 1 184 1 207 1 298 2017 2018 2019 2020 3Q/21
Slide 16: Q&A
Q&A
Slide 17: P&L by quarter
APPENDIX P&L by quarter EUR million Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Revenue 496.5 484.3 481.6 498.2 467.5 460.8 468.1 487.3 464.9 YoY growth 6.2 % 5.1 % 2.9 % 2.2 % 0.6 % 2.0 % 6.5 % 3.5 % 2.4 % Other operating income 1.6 3.0 2.5 1.6 1.3 0.6 0.6 3.0 0.9 Materials and services -
Slide 18: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q3/21 Q3/20 Change1) % 1-9/21 1-9/20 Change1) % 2020 EBITDA 186 180 6 3% 522 514 8 2% 685 Change in receivables -6 0 -6 22 31 -9 -30 % 11 Change in inventories -2 9 -11 -122 % -8 1 -9 -1 Change in payables -3 -15 12 -79 % -21 -35 14 -41 % 3 Change in NWC -12 -6 -6 -
Slide 19: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 EBITDA 186 166 170 171 180 168 166 168 179 Change in receivables -6 5 23 -20 0 8 23 -32 -2 Change in inventories -2 1 -7 -2 9 -10 2 -6 -1 Change in payables -3 13 -30 37 -15 2 -22 27 -9 Change in NWC -12
Slide 20: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Bonds and notes 887 886 885 1 058 1 057 759 758 757 943 Commercial papers 55 130 103 20 152 307 176 133 65 Schuldschein 100 100 100 Loans from financial institutions 254 253 253 252 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