Slide 1: Interim Report Q3 2022
Interim Report Q3 2022 19 October 2022
Slide 2: Q3 2022 highlights
INTERIM REPORT Q3 2022 Q3 2022 highlights • Revenue grew by 7.6% • EBITDA up by 4.2% • Mobile service revenue increased by 6.9% • In Finland, post-paid churn increased to 18.6% (15.3% in Q2) • Post-paid subscriptions grew by 35,400. M2M and IoT subscription base grew by 37,200. • Fixed broadband sub
Slide 3: Solid performance continues
INTERIM REPORT Q3 2022 Solid performance continues Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 5,5% 6,1% 6,8% 7,2% 6,9% 6,2% 7,5% 6,2% 7,7% 7,6% Increase • 5G upselling • Mobile and fixed continuing services • Product changes • Digital services • Equipment sales 496
Slide 4: Growth continued in all business areas
INTERIM REPORT Q3 2022 Growth continued in all business areas Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +5% + Mobile services + Digital services 40% 39% 38% 40% 36% + Equipment sales - Interconnection and traditional fixed-line services 314 125 327 118 313 121 3
Slide 5: Strategy execution
INTERIM REPORT Q3 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: Transformation to data bundles has taken place while speed upgrades continue
INTERIM REPORT Q3 2022 Transformation to data bundles has taken place while speed upgrades continue 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 86% 87% 89% 91% 92% 92% 93%
Slide 7: Elisa leading 5G
INTERIM REPORT Q3 2022 Elisa leading 5G • 5G coverage reached over 200 locations and over 83% population coverage • Average billing increase of over €3 in 5G upgrades intact • Elisa's 3G network in Finland will be phased out by the end of 2023 – Preparatory measures have already started – 900 MHz an
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q3 2022 Expansion of digital service businesses continued Domestic digital services International digital services • Entertainment services • Elisa IndustrIQ – Elisa Viihde original series All the Sins (Kaikki synnit) has been sold – Major deals won by sedApta, TenForce and CalcuQuote
Slide 9: A sustainable future through digitalisation
INTERIM REPORT Q3 2022 A sustainable future through digitalisation Key ESG indicators 3Q22 3Q21 4Q21 Mobile network energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -4.7% - - Population coverage of >100 Mbps connections in Finland 83.2% 64.4% 72.6% Proportion of fe
Slide 10: Upgraded outlook and guidance for 2022
INTERIM REPORT Q3 2022 Upgraded outlook and guidance for 2022 Growth in the Finnish economy is expected to slow down to some extent. Increasing levels of uncertainty relating to Russia’s war in Ukraine, such as inflation, energy prices and global supply chains, will continue. Competition remains kee
Slide 11: Financial review Q3 2022
Nise Financial review Q3 2022
Slide 12: Growth in revenue and earnings continuing
INTERIM REPORT Q3 2022 Growth in revenue and earnings continuing € million 1) Q3/22 Q3/21 Change % Q3 2022 YoY revenue change €38m Revenue 534.0 496.5 37.6 7.6% Other operating income 1.3 1.6 -0.3 -17.7% -1 Materials and services -208.4 -188.3 -20.1 10.7% Employee expenses -89.1 -80.4 -8.6 10.7% 7 O
Slide 13: Our systematic, long-term way of operating has ensured stable development
INTERIM REPORT Q3 2022 Our systematic, long-term way of operating has ensured stable development and mitigated the impact of energy price rises Electricity spot prices, €/MWh • Electricity price for 2022 nearly fully hedged 500 – Elisa has a long-term hedging policy for electricity purchases 400 Fra
Slide 14: Strong growth in Estonia
INTERIM REPORT Q3 2022 Strong growth in Estonia • Revenue and EBITDA improved Revenue Revenue. €m YoY change. % • Revenue +9% 8,2% 11,0% 8,1% 10,1% 8,8% – Mobile services – Equipment sales – Fixed services 48,7 53,0 49,3 51,4 53,0 • EBITDA growth +3% Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 • Mobile post-paid
Slide 15: YTD CAPEX lower, full-year guidance intact
INTERIM REPORT Q3 2022 YTD CAPEX lower, full-year guidance intact • CAPEX €67m (64). excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €63m (60) 12% 14% 12% 10% 10% – Consumer €45m (40) – Corporate €22m (23) 75 60 53 63 50 • Main CAPEX areas Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 –
Slide 16: Cash flow affected by NWC change
INTERIM REPORT Q3 2022 Cash flow affected by NWC change • Q3 cash flow €79m (86) Cash flow and comparable cash flow, €m Comparable • Q3 comparable cash flow €87m (89) 89 87 82 87 + Higher EBITDA 66 - NWC change, taxes 86 85 81 79 53 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Cash conversion Change in net working
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q3 2022 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA – Net debt / EBITDA 1.9× (target 1.5–2×) 1,7 1,8 1,8 1,7 1,9 – Equity ratio 38.6% (target >35%) 1 207 1 219 1 358 1 068 1 184 2018 2019 2020 2021 Q3/202
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter € million Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Revenue 534.0 521.5 511.4 535.5 496.5 484.3 481.6 498.2 467.5 YoY growth 7.6% 7.7% 6.2% 7.5% 6.2% 5.1% 2.9% 2.2% 0.6% Other operating income 1.3 1.1 0.9 1.8 1.6 3.0 2.5 1.6 1.3 Materials and services -208.4 -199.
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison € million Q3/22 Q3/21 Change1) % 1-9/22 1-9/21 Change1) % 2021 EBITDA 194 186 8 4% 548 522 26 5% 697 Change in receivables 0 -6 6 26 22 4 -32 Change in inventories -9 -2 -7 359% -19 -8 -10 126% -18 Change in payables -9 -3 -6 187% -61 -21 -41 199% 53 Change in NWC -
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter € million Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 EBITDA 194 177 177 176 186 166 170 171 180 Change in receivables 0 -17 43 -53 -6 5 23 -20 0 Change in inventories -9 -3 -6 -9 -2 1 -7 -2 9 Change in payables -9 6 -58 73 -3 13 -30 37 -15 Change in NWC -19 -
Slide 22: Debt structure
APPENDIX Debt structure € million at end of quarter Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Bonds and notes 891 890 889 888 887 886 885 1 058 1 057 Commercial papers 169 180 140 0 55 130 103 20 152 Schuldschein 0 0 100 100 100 100 100 Loans from financial institutions 283 353 253 254 2
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