Slide 1: Interim Report Q4 2021
Interim Report Q4 2021 27 January 2022
Slide 2: Q4 2021 highlights
INTERIM REPORT Q4 2021 Q4 2021 highlights • Revenue grew by 8% • Comparable EBITDA up by 4% • Mobile service revenue increased by 6.1% YoY • In Finland, post-paid churn increased to 20.1% (16.3% in Q3) • Post-paid subscriptions net increase was 7,100. M2M and IoT subscriptions grew by 17,200. • Fixe
Slide 3: A record year 2021 – revenue growth 5%, EPS growth 7%
2021 HIGHLIGHTS A record year 2021 – revenue growth 5%, EPS growth 7% Comparable figures CHANGE CHANGE Financials 2021 IN 2021 Operational KPIs 2021 IN 2021 Revenue €1,998m +5.5% Mobile service revenue €862m +4.2% EBITDA €706m +3.0% Mobile subs 4,919,100 +2,5% EBITDA-% 35.3% -0.8 pp Fixed broadband
Slide 4: Strong performance continued
INTERIM REPORT Q4 2021 Strong performance continued Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 5,5% 6,1% 5,1% 6,2% 7,5% Increase 4,2% • 5G up-selling 2,2% 2,9% 0,7% 0,9% continues • Acquisition and content • Product changes partnership • Mobile and fixed services 4
Slide 5: Good growth in Consumer Customers, strong improvement in Corporate Customers
INTERIM REPORT Q4 2021 Good growth in Consumer Customers, strong improvement in Corporate Customers Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +5% + Mobile services + Entertainment services (organic and content partnership) 37% 39% 39% 40% 36% + Equipment sales -
Slide 6: Strategy execution
INTERIM REPORT Q4 2021 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 6
Slide 7: Upselling of mobile subs continuing, driven by 5G
INTERIM REPORT Q4 2021 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 84% 85% 85% 86% 87% 89% 91% 92% 92% 93% – 20% (14% in Q
Slide 8: Elisa leading 5G
INTERIM REPORT Q4 2021 Elisa leading 5G • 5G coverage expanded to more than 4 million Finns in over 150 locations – the widest coverage in Finland1) • Nearly 90% of mobile phones sold are 5G devices • Elisa launched the first sustainable 5G subscription in Finland – Elisa Rehti 5G compensates for th
Slide 9: Expansion of digital service businesses continued
INTERIM REPORT Q4 2021 Expansion of digital service businesses continued Domestic digital services International digital services • Entertainment services • Elisa IndustrIQ – Successful original content production continued. For example, – camLine and sedApta made record quarter in revenue and order
Slide 10: Outlook and guidance for 2022
INTERIM REPORT Q4 2021 Outlook and guidance for 2022 Growth in the Finnish economy is expected to continue. However, there are some uncertainties, such as inflation and changes in the geopolitical environment. Competition in remains keen. • Revenue at same level or slightly higher than in 2021 • Com
Slide 11: Financial review Q4 2021
Nise Financial review Q4 2021
Slide 12: Growth continued – a record year 2021
INTERIM REPORT Q4 2021 Growth continued – a record year 2021 EUR million 1) Q4/21 Q4/20 Change % Q4 2021 YoY revenue change €37m Revenue 536 498 37.4 7.5 % Other operating income 2 2 0.2 13.9 % -1 Materials and services -212 -200 -12.5 6.3 % Employee expenses -100 -83 -17.7 21.5 % 6 Other operating
Slide 13: Strong growth in Estonia continuing
INTERIM REPORT Q4 2021 Strong growth in Estonia continuing • Revenue and EBITDA improved Revenue Revenue, €m YoY change, % – Revenue +11% 8,4% 11,0% 8,2% • Mobile and fixed services 2,3% • Equipment sales 0,0% – EBITDA growth +3.6% – Mobile post-paid base +4,500, pre-paid +1,100 47,8 45,4 46,7 48,7
Slide 14: CAPEX in line with guidance
INTERIM REPORT Q4 2021 CAPEX in line with guidance • CAPEX €82m (65), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €75m (64) 13% 13% 12% 14% 10% – Consumer €54m (43) – Corporate €27m (23) 75 64 64 60 48 • FY CAPEX excl. licences, lease Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 agr
Slide 15: Solid cash flow
INTERIM REPORT Q4 2021 Solid cash flow • Q4 cash flow €85m (53) Cash flow and comparable cash flow, €m Comparable • Q4 comparable cash flow €87m (99) 99 101 89 87 + Higher EBITDA 60 – Higher CAPEX, NWC change mainly due to higher inventory 101 86 85 53 50 • FY comparable cash flow €338m (351) Q4/20
Slide 16: Efficient capital structure and good returns
INTERIM REPORT Q4 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 1,7 – Net debt / EBITDA 1.7× (target 1.5–2×) – Equity ratio 39.9% (target >35%) 1 073 1 068 1 184 1 207 1 219 2017 2018 2019 2020 2021 •
Slide 17: Growing dividend for 8 consecutive years
INTERIM REPORT Q4 2021 Growing dividend for 8 consecutive years • Dividend proposal of €2.05 per share Dividend Dividend per share, € Payout 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% – Ex-dividend date 7 April 2022
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Revenue 535.5 496.5 484.3 481.6 498.2 467.5 460.8 468.1 487.3 YoY growth 7.5 % 6.2 % 5.1 % 2.9 % 2.2 % 0.6 % 2.0 % 6.5 % 3.5 % Other operating income 1.8 1.6 3.0 2.5 1.6 1.3 0.6 0.6 3.0 Materials and services -
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q4/21 Q4/20 Change1) % 2021 2020 Change1) % EBITDA 176 171 4 3% 697 685 12 2% Change in receivables -53 -20 -34 -32 11 -43 Change in inventories -9 -2 -7 -18 -1 -16 Change in payables 73 37 36 53 3 50 Change in NWC 11 16 -5 -32% 3 13 -9 -74% Financials (net) -1 -1 1
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 EBITDA 176 186 166 170 171 180 168 166 168 Change in receivables -53 -6 5 23 -20 0 8 23 -32 Change in inventories -9 -2 1 -7 -2 9 -10 2 -6 Change in payables 73 -3 13 -30 37 -15 2 -22 27 Change in NWC 11
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of quarter Q4/21 Q3/21 Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Bonds and notes 888 887 886 885 1 058 1 057 759 758 757 Commercial papers 0 55 130 103 20 152 307 176 133 Schuldschein 100 100 100 100 Loans from financial institutions 254 254 253 253 252
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