Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Q1 2021 Earnings Presentation
23 slides from Elisa Oyj Class A's earnings presentation, Apr 21, 2021
Slide 1: Interim Report Q1 2021
Interim Report Q1 2021 21 APRIL 2021
Slide 2: Q1 2021 highlights
INTERIM REPORT Q1 2021 Q1 2021 highlights • Good development continued • Revenue grew by 3% • EBITDA up by 2% • Mobile service revenue increased by 0.9% YoY – Decrease in roaming revenue due to COVID-19 • Post-paid churn decreased to 18.3% (19.8% in Q4) • Post-paid mobile subscription base increased
Slide 3: Good performance continued amid COVID-19 situation
INTERIM REPORT Q1 2021 Good performance continued amid COVID-19 situation Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 6.5% Increase • Roaming impact 2.0% 2.2% 2.9% 2.1% 0.6% • Acquisition and 0.7% 0.9% • 4G and 5G up- -0.2% -0.5% cooperation selling continues • Mobil
Slide 4: Good growth in Consumer Customers, roaming impacted on Corporate Customers
INTERIM REPORT Q1 2021 Good growth in Consumer Customers, roaming impacted on Corporate Customers Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +4% + Elisa Viihde Viaplay cooperation 41% + Mobile services 38% 39% 37% 39% + Equipment sales - Roaming 286 109 285 112 2
Slide 5: Strategy execution
INTERIM REPORT Q1 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 Q1 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.2) 4G 50 Mbps penetr.2) • 91% of customers use a smartphone 82% 83% 84% 84% 85% 85% 86% 87% 89% 91% – 7% of smartphone
Slide 7: Elisa leading in 5G
INTERIM REPORT Q1 2021 Elisa leading in 5G • Elisa’s 5G network has the widest coverage: over 2.5 million Finns in over 80 towns and cities • Remote working has become one of the main applications for 5G • By 2023, it is estimated that 5G network usage will exceed 4G • 5G customers’ NPS is growing i
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q1 2021 Expansion of digital service businesses continued Domestic digital services International digital services • Two new Elisa Viihde original series were • Virtual NOC automation (SaaS) from Elisa Entertainment launched: Mister8 and Kioski. Law drama Telecom cloud selected by Tra
Slide 9: Outlook and guidance for 2021
INTERIM REPORT Q1 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 Q1 2021
Slide 11: Growth in revenue and earnings
INTERIM REPORT Q1 2021 Growth in revenue and earnings EUR million 1) Q1/21 Q1/20 Change % Q1 2021 YoY revenue change, €13m Revenue 482 468 13.4 2.9 % Other operating income 3 1 1.9 296.4 % Materials and services -182 -172 -10.4 6.1 % -2 Employee expenses -94 -87 -7.1 8.2 % Other operating expenses -
Slide 12: Growth in Estonia
INTERIM REPORT Q1 2021 Growth in Estonia • Revenue and EBITDA improved Revenue Revenue, €m YoY change, % – Revenue +2.3% 10.0% – EBITDA growth +4.9% 1.1% 2.0% 2.3% 0.0% – Mobile post-paid base +5,300, pre-paid -5,500 – Churn 10.5% (9.7 in Q4) 44.4 43.1 45.0 47.8 45.4 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 EB
Slide 13: CAPEX in line with guidance
INTERIM REPORT Q1 2021 CAPEX in line with guidance • CAPEX €53m (51), excl. shares, licences CAPEX1) CAPEX / sales1) % and lease agreements €48m (48) 10% 14% 13% 13% 10% – Consumer €32m (32) – Corporate €20m (18) 65 59 64 48 48 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 • Main CAPEX areas Shares, licences and re
Slide 14: Negative NWC change affected cash flow
INTERIM REPORT Q1 2021 Negative NWC change affected cash flow • Q1 cash flow €50m (73) Cash flow and comparable cash flow, €m 97 99 • Q1 comparable cash flow €60m (73) 85 60 – NWC change, higher inventory and lower payables 83 91 73 53 50 – Higher taxes + Higher EBITDA Q1/20 Q2/20 Q3/20 Q4/20 Q1/21
Slide 15: Efficient capital structure and good returns
INTERIM REPORT Q1 2021 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA 1.8 1.8 1.8 – Net debt / EBITDA 1.7x (target 1.5–2x) 1.7 1.7 – Equity ratio 41.1% (target >35%) 1,073 1,068 1,184 1,207 1,164 • Return ratios at good le
Slide 16: Increasing dividend for 7 consecutive years
INTERIM REPORT Q1 2021 Increasing dividend for 7 consecutive years • Dividend of €1.95 per share Dividend Dividend per share, € Pay-out ratio1), % Dividend YoY growth – Total amount €312m 98% 94% 92% 93% 96% 95% 89% 90% – Paid on 20 April 2021 5.7% 5.4% 6.1% • Pay out ratio1) 95%, 7.1% 10.0% 6.1% 1.
Slide 17: Q&A
Q&A
Slide 18: P&L by quarter
APPENDIX P&L by quarter EUR million Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Revenue 481.6 498.2 467.5 460.8 468.1 487.3 464.9 451.6 439.7 YoY growth 2.9 % 2.2 % 0.6 % 2.0 % 6.5 % 3.5 % 2.4 % -1.3 % -2.2 % Other operating income 2.5 1.6 1.3 0.6 0.6 3.0 0.9 1.1 0.7 Materials and services
Slide 19: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q1/21 Q1/20 Change1) % 2020 EBITDA 170 166 4 2% 685 Change in receivables 23 23 0 1% 11 Change in inventories -7 2 -9 -510 % -1 Change in payables -30 -22 -8 38 % 3 Change in NWC -14 3 -17 13 Financials (net) -11 -11 0 -1 % -15 Taxes for the year -19 -15 -5 32 % -68
Slide 20: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 EBITDA 170 171 180 168 166 168 179 159 155 Change in receivables 23 -20 0 8 23 -32 -2 5 9 Change in inventories -7 -2 9 -10 2 -6 -1 -1 6 Change in payables -30 37 -15 2 -22 27 -9 5 -7 Change in NWC -14 16
Slide 21: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q1/21 Q4/20 Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Bonds and notes 885 1 058 1 057 759 758 757 943 941 939 Commercial papers 103 20 152 307 176 133 65 80 10 Schuldschein 100 Loans from financial institutions 253 252 250 250 250 250 290
Slide 22: 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 23: 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