Slide 1: Interim Report Q2 2023
Interim Report Q2 2023 14 July 2023
Slide 2: Q2 2023 highlights
INTERIM REPORT Q2 2023 Q2 2023 highlights • Revenue grew by 2.2% • Comparable EBITDA up by 1.8% • Mobile service revenue increased by 5.4% • Year-on-year revenue growth of international digital services slightly negative due to the expected volatility of the business. For the full year, strong doubl
Slide 3: Good performance despite some anticipated headwinds in Q2
INTERIM REPORT Q2 2023 Good performance despite some anticipated headwinds in Q2 Revenue Mobile service revenue Revenue, €m YoY change, % MSR, €m YoY change,% 7.2% 6.9% 5.4% 5.4% Increase 4.9% • 5G upselling 7.7% 7.6% 5.1% 5.5% 2.2% continuing • Mobile services • Fixed services • Product changes 522
Slide 4: Growth continuing in both segments
INTERIM REPORT Q2 2023 Growth continuing in both segments Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue +2% + Mobile and fixed services + Digital services 38% 40% 36% 38% 39% - Interconnection and traditional fixed-line services EBITDA +4% 319 122 330 131 339 123 32
Slide 5: Strategy execution
INTERIM REPORT Q2 2023 Strategy execution A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Migration to higher speeds continuing
INTERIM REPORT Q2 2023 Migration to higher speeds continuing 5G smartphone and speed penetration1) • 47% (36%) of voice subscriptions at >200 Mbps speeds1) 74% 71% 67% 64% – Speed matters. Upselling to higher speeds continuing. 62% 59% 57% 55% – 5G base is growing, 4G slightly decreasing 53% 45% 47%
Slide 7: Elisa leading in 5G, increasing investments in fibre network
INTERIM REPORT Q2 2023 Elisa leading in 5G, increasing investments in fibre network • 5G coverage – Finland: nearly 90% population coverage – Estonia: over 70% population coverage • Average billing increase of over €3 in 5G upgrades intact • Elisa was the first telco in Europe to deploy in-service s
Slide 8: Seasonality in IDS revenue growth – full-year growth on track
INTERIM REPORT Q2 2023 Seasonality in IDS revenue growth – full-year growth on track • YoY revenue growth slightly negative due to the expected Revenue and YoY growth volatility of the business Revenue, €m YoY change, % • For the full year, strong double-digit organic growth expected • Growth accele
Slide 9: Solid performance in domestic & other digital services
INTERIM REPORT Q2 2023 Solid performance in domestic & other digital services Entertaining video services IT services and solutions Visual communications • Elisa Viihde original series Renki and • Aktia Bank chose Elisa as a • Demand for visual communication season 3 of Sipoon herttua became partner
Slide 10: A sustainable future through digitalisation
INTERIM REPORT Q2 2023 A sustainable future through digitalisation Key ESG indicators 2Q23 2Q22 Mobile network's energy efficiency in Finland Change in energy consumption per GB from Q4 2021 level -13.5 % -8.8 % Population coverage of >100 Mbps connections 89.3 % 80.8 % Proportion of female supervis
Slide 11: Outlook and guidance for 2023
INTERIM REPORT Q2 2023 Outlook and guidance for 2023 The development of the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, uncertainty relating to Russia's war in Ukraine, such as inflation, energy prices and global supply chains, will
Slide 12: Financial review Q2 2023
Nise Financial review Q2 2023
Slide 13: Growth in revenue and EBITDA continuing
INTERIM REPORT Q2 2023 Growth in revenue and EBITDA continuing EUR million 1) Q2/23 Q2/22 Change % 2022 Revenue 532.7 521.5 11.2 2.2% 2,130 Q2 2023 YoY revenue change €11m Other operating income 1.3 1.1 0.1 12.1% 7 Materials and services -193.5 -199.0 5.5 -2.8% -821 -0 -3 Employee expenses -106.8 -9
Slide 14: Strong growth in Estonia
INTERIM REPORT Q2 2023 Strong growth in Estonia • Revenue growth 7.7% Revenue Revenue. €m YoY change. % – Mobile and fixed services 10.1% 8.8% 8.6% 7.7% 5.3% • EBITDA increase 7.8% – Despite of increase in energy prices and wages • Mobile post-paid base +3,000, prepaid -5,000 51.4 53.0 55.8 53.6 55.
Slide 15: CAPEX in line with guidance
INTERIM REPORT Q2 2023 CAPEX in line with guidance • CAPEX €70m (67), excl. licences, lease CAPEX1) CAPEX / sales1) % agreements and acquisitions €64m (53) 10% 12% 16% 10% 12% – Consumer €45m (45) – Corporate €24m (22) 88 63 57 64 53 • Main CAPEX areas Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 – 5G coverage inc
Slide 16: Strong cash flow growth
INTERIM REPORT Q2 2023 Strong cash flow growth • Cash flow €108m (82, comparable 81) Cash flow and comparable cash flow, €m Comparable + NWC change, higher EBITDA + Lower licence payments 87 81 – CAPEX, taxes, interest payments 108 82 79 86 71 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Cash conversion Change in
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q2 2023 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt. €m Net debt / EBITDA 1.8 1.8 1.7 1.7 2.0 – Net debt / EBITDA 2.0× (target 1.5–2×) 1,459 – Equity ratio 35.2% (target >35%) 1,184 1,207 1,219 1,276 2019 2020 2021 2022 Q2/23
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Revenue 532,7 539.7 562.6 534.0 521.5 511.4 535.5 496.5 484.3 YoY growth 2.2% 5.5% 5.1% 7.6% 7.7% 6.2% 7.5% 6.2% 5.1% Other operating income 1.3 4.5 3.5 1.3 1.1 0.9 1.8 1.6 3.0 Materials and services -193.5 -20
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q2/23 Q2/22 Change1) % 1-6/23 1-6/22 Change1) % 2022 EBITDA 183 177 5 3% 366 354 12 3% 733 Change in receivables 7 -17 24 -143 % 51 26 25 96 % -16 Change in inventories 7 -3 10 -313 % 8 -9 17 -179 % -13 Change in payables 8 6 2 35 % -51 -52 2 -3 % 2 Chan
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 EBITDA 183 183 185 194 177 177 176 186 166 Change in receivables 7 44 -42 0 -17 43 -53 -6 5 Change in inventories 7 0 5 -9 -3 -6 -9 -2 1 Change in payables 8 -59 63 -9 6 -58 73 -3 13 Change in NWC 22 -14
Slide 22: Debt structure
APPENDIX Debt structure EUR million at end of quarter Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Q1/22 Q4/21 Q3/21 Q2/21 Bonds and notes 894 893 892 891 890 889 888 887 886 Commercial papers 241 159 125 169 180 140 0 55 130 Credit facility 100 0 0 0 0 100 100 100 100 Loans from financial institutions 253 253 253
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