Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Q3 2020 Earnings Presentation
22 slides from Elisa Oyj Class A's earnings presentation, Oct 16, 2020
Slide 1: Interim Report Q3 2020
Q3 2020 Interim Report Q3 2020 16 OCTOBER 2020
Slide 2: Q3 2020 highlights
INTERIM REPORT Q3 2020 Q3 2020 highlights • Solid development continued • Revenue grew by 1% • EBITDA up by 1% • Mobile service revenue decreased by -0.5% YoY and 1% up QoQ – Decrease in roaming revenue due to COVID-19 • Post-paid churn increased to 17.6% (16.4% in Q2) • Post-paid mobile subscriptio
Slide 3: Solid performance in COVID-19 circumstances continued
INTERIM REPORT Q3 2020 Solid performance in COVID-19 circumstances continued Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 6,5% Increase • Roaming impact 2,4% 3,5% 2,0% 2,3% 1,5% 2,1% 0,6% • Digital services -0,2% • 4G and 5G up- -0,5% • Equipment sales selling continu
Slide 4: Good growth in Consumer Customers, roaming impacted on Corporate Customers
INTERIM REPORT Q3 2020 Good growth in Consumer Customers, roaming impacted on Corporate Customers Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +1% + Domestic digital services 41% + Mobile services, Estonian business 40% 38% 39% 36% - Interconnection and roaming - T
Slide 5: Strategy execution
INTERIM REPORT Q3 2020 Strategy execution Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Up-selling of mobile subs continues, 5G proceeds
INTERIM REPORT Q3 2020 Up-selling of mobile subs continues, 5G proceeds Growth in 4G smartphone penetration Smartphone and 4G speed penetration,% Smartphone penetr.1) 4G speed penetr.2) 4G 50 Mbps penetr.2) • 87% of customers use a smartphone 81% 82% 83% 84% 84% 85% 85% 86% 87% 80% – 98% (97%) 4G- a
Slide 7: Elisa leading in 5G
INTERIM REPORT Q3 2020 Elisa leading in 5G • 5G network launched in over 50 town and cities and cover 1.6 million people • 5G RAN and Core Network procurement contracts signed with Ericsson and Nokia • The widest selection of 5G devices, latest additions: OnePlus Nord, Moto G 5G Plus and Nokia 8.3 –
Slide 8: Expansion of digital service businesses continued
INTERIM REPORT Q3 2020 Expansion of digital service businesses continued Domestic digital services International digital services • The Elisa Invitational, a BLAST Premier Qualifier • Elisa has acquired majority stake in CalcuQuote, a online tournament will be the most significant US-based supply ch
Slide 9: Outlook and guidance for 2020
INTERIM REPORT Q3 2020 Outlook and guidance for 2020 The current COVID-19 situation will slow down economic growth and create uncertainty in macroeconomic development. Competition in the Finnish telecommunications market remains keen. • Guidance for 2020 is unchanged • Revenue at same level or sligh
Slide 10: Financial review
Q3 2020 Financial review INTERIM REPORT Q3 2020
Slide 11: Growth in revenue and earnings
INTERIM REPORT Q3 2020 Growth in revenue and earnings €m 1) Q3/20 Q3/19 Change % Q3 2020 revenue change YoY, €3m Revenue 468 465 2.6 0.6% Other operating income 1 1 0.4 39.8% Materials and services -176 -172 -3.5 2.1% -1,6 -1,6 Employee expenses -74 -74 -0.1 0.2% Other operating expenses -39 -41 2.2
Slide 12: Solid performance in Estonia continues
INTERIM REPORT Q3 2020 Solid performance in Estonia continues • Revenue and EBITDA improved Revenue Revenue, €m YoY change, % – Revenue growth +1.1% 10,0% 6,7% 7,2% – EBITDA growth +1.9% 1,1% 2,1% – Mobile and fixed services growing – Mobile post-paid base +5,100, pre-paid -900 44,5 47,8 44,4 43,1 4
Slide 13: Full-year 12% CAPEX/sales guidance intact
INTERIM REPORT Q3 2020 Full-year 12% CAPEX/sales guidance intact • CAPEX €75m1) (56), excl. shares, CAPEX1) CAPEX / sales1) % licences and lease agreements 15% 14% 13% €61m (52) 11% 10% – Consumer €46m (38) – Corporate €29m (18) 71 65 61 52 48 • YTD CAPEX excl. shares, licences Q3/19 Q4/19 Q1/20 Q2/
Slide 14: Comparable cash flow at previous year's level
INTERIM REPORT Q3 2020 Comparable cash flow at previous year´s level • Q3 Cash flow €91m (97) Cash flow and comparable cash flow, €m 98 97 • Q3 comparable cash flow €97m (98) 85 73 55 – Higher EBITDA and less negative NWC change 97 83 91 73 affected positively 55 – Higher CAPEX affected negatively Q
Slide 15: Efficient capital structure and good returns
INTERIM REPORT Q3 2020 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA – Net debt / EBITDA 1.8x (target 1.5–2x) 2,0 1,8 1,7 1,8 1,8 – Equity ratio 36.2% (target >35%) 1 184 1 256 1 124 1 073 1 068 • Return ratios at good le
Slide 16: Q&A
Q&A
Slide 17: P&L by quarter
APPENDIX P&L by quarter EUR million Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Q4/18 Revenue 467.5 460.8 468.1 487.3 464.9 451.6 439.7 470.6 YoY growth 0.6 % 2.0 % 6.5 % 3.5 % 2.4 % -1.3 % -2.2 % -0.4 % Other operating income 1.3 0.6 0.6 3.0 0.9 1.1 0.7 0.9 Materials and services -175.6 -166.8 -171.6
Slide 18: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison Q3/20 Q3/19 Change1) % 1-9/20 1-9/19 Change1) % EBITDA 180 179 1 1% 514 493 21 4% Change in receivables 0 -2 2 -87 % 31 12 19 165 % Change in inventories 9 -1 10 1 4 -3 -78 % Change in payables -15 -9 -6 74 % -35 -10 -24 232 % Change in NWC -6 -12 6 -48 % -3 6 -9 -1
Slide 19: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Q4/18 EBITDA 180 168 166 168 179 159 155 158 Change in receivables 0 8 23 -32 -2 5 9 4 Change in inventories 9 -10 2 -6 -1 -1 6 -7 Change in payables -15 2 -22 27 -9 5 -7 -1 Change in NWC -6 1 3 -11 -12 10 8 -4 Finan
Slide 20: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q3/20 Q2/20 Q1/20 Q4/19 Q3/19 Q2/19 Q1/19 Q4/18 Bonds and notes 1 057 759 758 757 943 941 939 767 Commercial papers 152 307 176 133 65 80 10 107 Loans from financial institutions 250 250 250 250 290 290 250 250 Financial leases 1) 100 90
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 investor.relations@elisa.fi
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