Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Q4 2024 Earnings Presentation
25 slides from Elisa Oyj Class A's earnings presentation, Jan 31, 2025
Slide 1: Interim Report Q4 2024
Interim Report Q4 2024 31 January 2025
Slide 2: Q4 2024 highlights
INTERIM REPORT Q4 2024 Q4 2024 highlights • Revenue increased by 2.9%, driven by strong growth in international digital services and an increase in mobile service revenue • Comparable EBITDA up by 3.3% • Mobile service revenue increased by 4.1% • International digital services revenue increased by 7
Slide 3: Good EBITDA growth driven by MSR and efficiency
INTERIM REPORT Q4 2024 Good EBITDA growth driven by MSR and efficiency Revenue Mobile service revenue Revenue, €m YoY change, % Increase MSR, €m YoY change,% • IDS and domestic 2,9% 4,4% 5,8% 4,7% 4,8% • 5G upselling 0,1% -1,0% 1,6% digital services 4,1% -1,6% continuing • Mobile services • Product
Slide 4: EBITDA growth continued in both segments
INTERIM REPORT Q4 2024 EBITDA growth continued in both segments Revenue and EBITDA1) Consumer Customers Revenue, €m EBITDA, €m EBITDA-% Revenue +0.4% + Mobile and fixed services 43% 41% 41% - Equipment sales 38% 39% - Interconnection and roaming - Traditional fixed-line services EBITDA +2.4% 343 132
Slide 5: Record year 2024: 4% comparable EBITDA growth
INTERIM REPORT Q4 2024 Record year 2024: 4% comparable EBITDA growth Comparable figures CHANGE CHANGE Financials 2024 IN 2024 Operational KPIs 2024 IN 2024 Revenue €2,191m +0.5% Mobile service revenue €1,009m +4.9% EBITDA €783m +3.6% Mobile subs 5,252,100 +1.7% EBITDA-% 35.7% +1.1 pp Fixed broadband
Slide 6: Strategy execution
INTERIM REPORT Q4 2024 Strategy execution Strategic focus areas Mission Increase mobile and fixed service revenues A sustainable Grow digital service businesses future through digitalisation Improve efficiency and quality 6
Slide 7: Migration to higher speeds continuing
INTERIM REPORT Q4 2024 Migration to higher speeds continuing • 58% (51%) of voice subscriptions at >200 Mbps 5G smartphone and speed penetration1) speeds1) • Speed matters. Upselling to higher speeds continuing. • 5G base is growing, 4G decreasing 57% 56% 58% 55% 53% 55% • Standalone 5G gaining mome
Slide 8: Elisa leading in 5G, fiber network expanding
INTERIM REPORT Q4 2024 Elisa leading in 5G, fiber network expanding • 5G population coverage reached all municipalities in Finland. Population coverage 96% in Finland and over 78% in Estonia. • Average billing increase of over €3 in 5G upgrades intact • Accelerated growth in standalone 5G (5G+) base
Slide 9: FY double-digit organic growth in IDS business
INTERIM REPORT Q4 2024 FY double-digit organic growth in IDS business • YoY revenue increased by 77% • Growth boosted by sedApta acquisition Revenue and YoY growth • Organic growth 27% Revenue, €m YoY change, % • Growth in order intake continuing 77% • Full-year organic growth: 10.4% • Q4 highlights
Slide 10: Good steps forward in developing domestic digital services
INTERIM REPORT Q4 2024 Good steps forward in developing domestic digital services Entertaining video services Strengthened competitiveness in IT and security services • Streaming service aggregation gaining momentum – Disney+ streaming service added to portfolio in December • Strategic collaboration
Slide 11: Elisa building a sustainable society through digital security
INTERIM REPORT Q4 2024 Elisa building a sustainable society through digital security • Increasing need for versatile digital security services across consumers, corporates and public sector organisations • Number of Elisa consumer customers using Mobile Certificate mobile ID increased by 60% in 2024
Slide 12: Outlook and guidance for 2025
INTERIM REPORT Q4 2024 Outlook and guidance for 2025 The development of the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, there is continuing uncertainty in global supply chains relating to Russia’s war in Ukraine and other conflicts.
Slide 13: Financial review Q4 2024
Nise Financial review Q4 2024
Slide 14: Solid revenue and EBITDA growth
INTERIM REPORT Q4 2024 Solid revenue and EBITDA growth EUR million 1) Q4/24 Q4/23 Change % 2024 Q4 2024 YoY revenue change +€16m Revenue 579.7 563.3 16.3 2.9% 2,191 -5 -2 Other operating income 2.6 2.4 0.1 5.4% 6 17 Materials and services -217.2 -213.7 -3.5 1.6% -784 Employee expenses -113.4 -105.0
Slide 15: Profitability improved in Estonia
INTERIM REPORT Q4 2024 Profitability improved in Estonia • Revenue decreased by EUR 3m, -5% Revenue Revenue, €m YoY change, % • Negatively equipment sales and interconnection • Positively impacted by service revenue 8,1% 9,4% -5,0% -4,1% -4,8% • EBITDA increase of 2% • Sales mix change • Despite inf
Slide 16: Full-year CAPEX in line with guidance
INTERIM REPORT Q4 2024 Full-year CAPEX in line with guidance • CAPEX: €92m (109), excl. licences, lease CAPEX1) agreements and acquisitions: €80m (91) CAPEX / sales1) % 16% 15% 14% 14% • Consumer €61m (73) 11% • Corporate €31m (36) 91 81 80 77 58 • Full-year CAPEX: €338m (321) excl. licences, lease
Slide 17: Cash flow affected by negative NWC change
INTERIM REPORT Q4 2024 Cash flow affected by negative NWC change • Comparable cash flow: €66m (73), decrease 9% Cash flow and comparable cash flow, €m + Lower CAPEX Comparable 94 111 - Higher interest costs and negative NWC change 73 86 66 76 95 • Full year comparable cash flow: €357m (361), -1% 61
Slide 18: Efficient capital structure and good returns
INTERIM REPORT Q4 2024 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×) 1,8 1,7 1,7 1,7 1,9 • Equity ratio: 38.7% (target >35%) 1 473 1 207 1 219 1 276 1 304 • Return ratios at good
Slide 19: Competitive remuneration continues
INTERIM REPORT Q4 2024 Competitive remuneration continues Dividend • Dividend proposal of €2.35 per share Dividend per share, € Pay-out ratio1), % Dividend YoY growth • Two instalments: €1.18 and €1.17 98% 94% 92% 93% 100% 89% 90% 96% 95% 95% 92% 96% • Dividend growth: +4.4% 5.4% 5,1% 4.9% 4.7% 4.4%
Slide 20: Q&A
Q&A
Slide 21: P&L by quarter
APPENDIX P&L by quarter EUR million Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Revenue 579.7 535.9 541.4 534.5 563.3 544.7 532.7 539.7 562.6 YoY growth 2.9% -1.6% 1.6% -1.0% 0.1% 2.0% 2.2% 5.5% 5.1% Other operating income 2.6 1.1 1.8 0.7 2.4 1.7 1.3 4.5 3.5 Materials and services -217.2 -
Slide 22: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q4/24 Q4/23 Change1) % 1-12/2024 1-12/2023 Change1) % EBITDA 191 191 -0 0% 767 756 11 1% Change in receivables -60 -53 -7 30 -2 32 Change in inventories 2 8 -6 6 15 -10 Change in payables 45 46 -1 -20 2 -22 Change in NWC -13 1 -14 16 15 0 Financials (net
Slide 23: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 EBITDA 191 206 190 180 191 199 183 183 185 Change in receivables -60 38 3 48 -53 0 7 44 -42 Change in inventories 2 2 0 1 8 0 7 0 5 Change in payables 45 -28 12 -49 46 7 8 -59 63 Change in NWC -13 12 15 1
Slide 24: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Bonds and notes 896 895 895 894 1,141 1,140 894 893 892 Commercial papers 307 191 230 183 35 152 241 159 125 Credit facility 50 0 40 70 0 70 100 0 0 Loans from financial institutions 2
Slide 25: 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