Slide 1: Slide 1
Slide 2: Agenda
Agenda CEO’s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO 2
Slide 3: CEO’s review
CEO’s review • Q1 2012 financial and operational highlights • Segment review • Strategy execution • Mobile data and smartphone market development • Progress of new services • Outlook for 2012 3
Slide 4: Q1 2012 highlights
Q1 2012 highlights • Q1 performance was good and according to our expectations • Profitability was at the good level • Mobile subscription base and usage continued to increase • Elisa Viihde IPTV contributed to fixed broadband growth • Smartphone market continued its success • AGM decided on EUR 1.3
Slide 5: Growth in revenue and EBITDA
Q1 2012 financial highlights Growth in revenue and EBITDA • Revenue € 382m (374) • EBITDA € 121m (118) 36 % 35 % – 32% of revenue (32) 33 % 33 % 32 % 32 % 33 % 32 % 31 % • EBIT € 68m (65) • CAPEX € 42m (41) – 11% of revenue 401 • Net debt € 754m (752) 383 382 374 378 378 – Cash flow € 37m (27) 364 3
Slide 6: Market position further strengthened
Q1 2012 operational highlights Market position further strengthened • 86,600 new mobile subs 4 094 4 158 4 244 3 991 – Growth in both customer segments 3 797 3 898 3 652 3 550 – Strongest growth again in mobile 3 432 broadband – Estonia +21,200 subscriptions • Fixed broadband growth continued – Net
Slide 7: Growth in usage, churn at the normal level
Q1 2012 operational highlights Growth in usage, churn at the normal level • Growth in mobile usage – Outgoing minutes 1.8bn, YoY growth 4% – 527m SMS, YoY growth 10% 18,1 % 1 790 1 804 15,9 % 15,4 % • Mobile churn 15.3% (14.3) 15,0 % 14,3 % 15,3 % – At the normal level 1 749 1 768 1 754 13,4 % 1 739
Slide 8: Business Segments
Business Segments 8
Slide 9: Growth in new services and mobile business
Q1 2012 Consumer Customers Growth in new services and mobile business • Revenue € 232m (224) 35 % – Growth in mobile usage, smartphone 34 % 34 % 33 % 32 % 32 % sales and online services 31 % 31 % 30 % – Growth in Estonia – Decrease in fixed telephony business and mobile interconnection revenue • EBI
Slide 10: ICT service business up, traditional fixed down
Q1 2012 Corporate Customers ICT service business up, traditional fixed down • Revenue € 150m (150) 36 % 37 % 34 % – Growth in ICT services and equipment 34 % 34 % 33 % 32 % 32 % sales 31 % – Decrease in fixed network business and mobile interconnection revenue • EBITDA € 47m (51) – 32% of revenue (3
Slide 11: Strategy execution
Strategy execution New services and new markets Strengthening market position in core markets Integration of One Elisa 11
Slide 12: Mobile data and smartphone market grow strongly
Mobile data and smartphone market grow strongly Penetrations in Elisa’s network in Finland • Finland is one of the most advanced 40,0 % mobile broadband services countries in 36,5 % Europe 33,5 % • Smartphones top the list of most sold 30,0 % phones in March 26,0 % 1. Nokia Lumia 800 23,0 % 2. Apple
Slide 13: Video conferencing services delivered to over 80 countries
Video conferencing services delivered to over 80 countries • Elisa (Videra) is a leading Nordic video conferencing provider • More than 10,000 sites in over 80 countries • 45% of the installations are outside Finland
Slide 14: Engaging content in Elisa Kirja e-book and Elisa Viihde IPTV
Engaging content in Elisa Kirja e-book and Elisa Viihde IPTV • Elisa Kirja e-book — Radio plays by YLE, Finland’s National broadcasting company • Elisa Viihde IPTV Sports viewing like never before! — New ways to enjoy F1 races — World Ice Hockey World Championships will be an all- encompassing viewe
Slide 15: 3G network with widest coverage
3G network with widest coverage • Elisa #1 in 3G network coverage and signal strength – Based on independent research house European Communications Engineering Oy (ECE) • 4G speeds now in 150 localities • Good demand in consumer and corporate segments – Popular for example for video viewing and tele
Slide 16: Notable CO2 emission savings
Notable CO2 emission savings • Emissions savings of more than 15,000 carbon dioxide tonnes in 2011 • The most significant factors in reducing emissions – Mobile work solutions – Video conferencing solutions
Slide 17: Outlook for 2012
Outlook for 2012 • Uncertainties in the general economy have also affected Finland. The macro economic outlook for Finland is weaker than the outcome in 2011. • Competition remains challenging • Revenue at the same level as last year • EBITDA excluding one-offs at the same level and EBIT will improv
Slide 18: Agenda
Agenda CEO’s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO 18
Slide 19: Revenue and EBITDA growth continued in Q1
Revenue and EBITDA growth continued in Q1 EUR million Q1/12 Q1/11 Δ Δ% 2011 Revenue 382 374 8 2.1% 1 530 Other operating income 1 1 6 Operating expenses -261 -257 -4 -1.6% -1 030 EBITDA 1) 121 118 3 3.0% 506 EBITDA-% 32% 31% 33% Depreciation and amortisation -53 -52 -1 1.7% -211 EBIT 68 65 3 4.0% 29
Slide 20: Growth in consumer segment and equipment sales
Growth in consumer segment and equipment sales + New services (ICT and video) + Estonia + Mobile - PSTN + Mobile + New services (Online services) + Estonia + Fixed broadband + Smartphones +/- Cable TV + Volumes - PSTN - MTR reduction 20
Slide 21: Equipment sales increased OPEX
Equipment sales increased OPEX • OPEX decreases in Q1 Q1 Q2 Q3 Q4 Q1 EURm 11 11 11 11 12 – Interconnection and roaming Materials and – Productivity improvements, e.g. 158 159 156 170 158 services – IT, Sales costs Employee • OPEX increases in Q1 benefit 58 57 49 59 61 expenses – Equipment sales – Pe
Slide 22: CAPEX/Sales in line with guidance
CAPEX/Sales in line with guidance 20% • CAPEX in Q1 EUR 42m (41) 15% 14% – CAPEX/Sales 11% (11%) 13% 11% 20 12% 12% 15% 11% 11% 11% – Consumer EUR 24m (23) 10% – Corporate EUR 18m (18) 11 5% 21 4 25 • Major CAPEX areas 20 19 0% 17 16 – 3G and 4G coverage and upgrade 15 18 18 -5% – Fixed access and b
Slide 23: Solid cash flow continued
Solid cash flow continued EUR million Q1/12 Q1/11 Δ 2011 EBITDA 121 118 3 506 Change in receivables 2 3 -1 -19 Change in inventories -7 -4 -3 -2 Change in payables -9 -12 3 -11 Change in NWC -14 -13 -1 -31 Financials (net) -19 -17 -2 -31 Taxes -11 -15 4 -51 CAPEX -40 -41 1 -188 Investments in shares
Slide 24: Strong growth in Estonia continued
Strong growth in Estonia continued 32% • Revenue € 25m (21) 30% 30% 30% – Strong growth in mobile subs 28% 27% 27% continued 26% – +72,400 YoY, +21,200 QoQ 23% – Mobile broadband growing • EBITDA € 7m (6) 26 27 26 25 23 23 23 – Revenue growth 21 21 • CAPEX € 2m (3) – 3G Coverage Q1/10 Q2/10 Q3/10 Q4
Slide 25: Liquidity position is good
Liquidity position is good Bond and Bank loan maturities • Cash and undrawn committed facilities EUR 364m (345m) 130 • Revolving Credit Facilities (RCF) – EUR 170m maturing Jun 2016 10 – EUR 130m maturing Nov 2014 – Fully undrawn Q1/12 170 • Commercial Paper Program – EUR 184m in use in Q1/12 300 •
Slide 26: Capital structure in line with targets
Capital structure in line with targets • Capital structure 1,7 1,7 – Net debt / EBITDA 1.5 1,6 1,6 1,6 1,5 1,5 1,5 1,5 – Gearing 85% 845 – Equity ratio 45% 817 776 793 788 752 752 754 725 • EUR 203m dividend in Q2/12 – Pro Forma Q1/12 Net Debt / EBITDA 1.9 42% 45% 43% 43% 42% 45% 40% 40% • Target se
Slide 27: Competitive remuneration to shareholders continued
Competitive remuneration to shareholders continued 302% • EUR € 1.30 dividend per share 86 – Total amount € 203m 149% – Paid 18.4.2012 43 126%135% 110% • Dividend yield 8.1% 1) 77% 402 88% 101% 79 285 – Payout ratio 101% 39% 221 202 203 123 116 156 • Strong commitment to competitive 9 shareholder re
Slide 28: Appendix
Slide 29: Consolidated Cash flow statement
APPENDIX SLIDE Consolidated Cash flow statement EUR million Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 Cash flow from operating activities Profit before tax 61 72 74 61 58 66 68 53 10 Adjustments to profit before tax 59 58 61 61 59 56 60 67 106 Change in working capital
Slide 30: Financial situation
APPENDIX SLIDE Financial situation EUR Million 31 Mar 12 31 Dec 11 30 Sep 11 30 Jun 11 31 Mar 11 31 Dec 10 30 Sep 10 30 Jun 10 31 Mar 10 Interest-bearing debt Bonds and notes 375 375 375 600 600 599 598 598 597 Commercial Papers 184 189 160 160 120 102 68 110 118 Loans from financial institutions 22