Slide 1: Elisa Communications Interim Report
Elisa Communications Interim Report January 1, 2002 – March 31, 2002
Slide 2: Execution of Elisa's strategy 2002
Execution of Elisa’s strategy 2002 1997 2001 2002 Growth Consolidation Profitability Cross business area synergies, economies of scale, cutting of operating expenditure and CAPEX Global partners: Vodafone and SPRINT 3.5.2002 Corporate Finance/Investor Relations
Slide 3: Group Business Proceeded on Track in the First Quarter of 2002
Group Business Proceeded on Track in the First Quarter of 2002 ? Business operations were executed as planned, revenue growth of 15% clearly exceeded sector growth ? Mobile business reported EBITDA growth and Fixed business EBITDA margin stayed flat compared to first quarter of previous year ? CAPEX
Slide 4: Key Figures of Elisa Group 1Q 2002
Key Figures of Elisa Group 1Q 2002 Reported figures Excluding one-time items EUR million 1Q/02 1Q/01 change 1Q/02* 1Q/01** change Revenue 384 333 15 % 385 333 16 % EBITDA 78 76 3% 86 68 26 % EBIT -13 19 - 12 13 -8 % Pre Tax Profit -25 0 - 0 -6 - ? Revenue growth 15 %. The new group companies contrib
Slide 5: Business Areas: Mobile Business 1Q 2002
Business Areas: Mobile Business 1Q 2002 Mobile Revenue EBITDA EBIT Service- and 1Q/02 1Q/01 change 1Q/02 1Q/01 change 1Q/02 1Q/01 change network operators 166 161 3% 53 46 15 % 18 28 -36 % Distribution companies 12 17 -29 % -1 -2 - -2 -3 - Intra-SBA sales -4 -3 Group bookings -9 -10 Total 174 175 -1
Slide 6: Business Areas: Mobile Business (cont.)
Business Areas: Mobile Business (cont.) ? Average amount of SMS sent per subscriber was 26 per month (26) ? Value added services accounted for 12% of revenues (12%) ? Service operator’s annualised churn was 18.2% (13.9%) ? Churn was affected by exceptional, even unhealthy competition in last Decembe
Slide 7: Business Areas: Fixed Network Business 1Q 2002
Business Areas: Fixed Network Business 1Q 2002 Fixed network Revenue EBITDA EBIT 1Q/02 1Q/01 change 1Q/02 1Q/01 change 1Q/02 1Q/01 change *Service operator and Network operator 258 52 23 Intra-SBA sales -55 Group bookings -1 Total 203 143 42 % 52 41 27 % 22 20 10 % ? Fixed network business was incor
Slide 8: Business Areas: Fixed Network Business (cont.)
Business Areas: Fixed Network Business (cont.) ? The amount of subscriptions in Elisa group was 1.15 million (0.73) ? The broadband access market leadership was further enhanced. The number of ADSL channels increased to 36 300 (8 300). ? Fixed network companies focused on national integration of the
Slide 9: Business Areas: Germany-based Operations Q1 2002
Business Areas: Germany-based Operations Q1 2002 EBIT + share of Germany Revenue EBITDA associated comp 1Q/02 1Q/01 1Q/02 1Q/01 1Q/02 1Q/01 Carrier-business 26 9 -8 -4 -18 -18 Mäkitorppa GmbH 1 4 -7 -3 -10 -3 Group bookings Total 27 13 -15 -7 -28 -21 ? City carrier business progressed according to p
Slide 10: Business Areas: Germany-based Operations (cont.)
Business Areas: Germany-based Operations (cont.) ? Consolidation and integration of city carrier business to Tropolys GmbH was continued. Elisa holds now 64.5% of Tropolys. ? Acquisition of HLkomm majority is being pursued, as the carrier would contribute significantly to consolidated earnings of Tr
Slide 11: Strategic Alignment of Elisa in the New Domestic Market Scenario
Strategic Alignment of Elisa in the New Domestic Market Scenario ? Finland is the main market of Elisa ? Elisa offers in the domestic market comprehensive telecommunications solutions tailored for the needs of Finnish customers ? Continuing to execute the current strategy Elisa has an increased oppo
Slide 12: Future Outlook
Future Outlook ? The Group's revenue is expected to grow faster than the sector in general in 2002 ? Euro value of EBITDA and PTP without one-time items are estimated to improve compared to 2001 ? The positive impact of the restructuring programs executed in 2001 will start showing in the results of
Slide 13: Elisa Communications Interim Report
Elisa Communications Interim Report January 1, 2002 – March 31, 2002
Slide 14: Elisa Communications' 1Q/2002 P&L
Elisa Communications’ 1Q/2002 P&L Elisa Communications Group Excl. one-time items * EURm Q1/02 Q1/01 Q1/02 Q1/01 Revenue 384 333 385 333 Other income from operations 5 11 5 3 EBITDA 77 76 86 68 EBITDA margin 20 % 23 % 22 % 20 % Depreciation -77 -46 -60 -44 Goodwill depreciation -13 -11 -13 -11 EBIT
Slide 15: Key Figures of Elisa Communications
Key Figures of Elisa Communications Elisa Group 1Q/02 4Q/01 3Q/01 2Q/01 1Q/01 EURm Revenue 384 386 389 331 333 EBITDA 78 183 91 75 76 EBITDA-% 20 % 47 % 23 % 23 % 23 % Adjusted EBITDA 86 97 91 77 68 Adj. EBITDA-% 22 % 25 % 23 % 23 % 20 % EBIT -13 58 16 15 19 Adjusted EBIT 12 19 22 31 13 Pre-Tax Prof
Slide 16: Key Figures (cont.)
Key Figures (cont.) Business Areas 1Q/02 4Q/01 3Q/01 2Q/01 1Q/01 Mobile ARPU, EUR 41,4 42,7 44,2 45,3 42,2 Churn, % 18,2 14,4 15,5 13,9 13,9 Subscriptions 1 348 710 1 356 204 1 295 280 1 281 577 1 392 000 EBITDA, EURm 52 47 58 47 46 EBITDA-% 30 % 28 % 33 % 27 % 29 % Leasing adj. EBITDA,EURm 63 60 71
Slide 17: Reconciliation of Clean Sales, EBITDA and EBIT
Reconciliation of Clean Sales, EBITDA and EBIT Clean Sales, EBITDA and EBIT EURm 1Q 2002 Sales 384 IAS accounting 1 1) Clean Sales 385 Other income 5 One-time costs from Mäkitorppa GmbH 7 2) Opex -311 Clean EBITDA 86 Depreciation -77 Goodwill depreciation -14 Write off in Radiolinja 14 3) Write off
Slide 18: Revenue, EBITDA and EBIT by Business Areas, EURm
Revenue, EBITDA and EBIT by Business Areas, EURm Mobile Revenue EBITDA EBIT Q1/02 Q1/01 change Q1/02 Q1/01 change Q1/02 Q1/01 change Operator business 166 161 3% 53 46 15 % 18 28 -36 % Distribution companies 12 17 -29 % -1 -2 - -2 -3 - Intra-SBA sales -4 -3 Group bookings -9 -10 Total 174 175 -1 % 5