Ally Financial Inc. · NYSE:ALLY
Ally Financial — Q2 2024 Earnings Presentation
23 slides from Ally Financial's earnings presentation, Jul 17, 2024
Slide 1: Interim Report Q2 2024
Interim Report Q2 2024 16 July 2024
Slide 2: Q2 2024 highlights
INTERIM REPORT Q2 2024 Q2 2024 highlights • Revenue increased by 2% • EBITDA up by 4% • Mobile service revenue increased by 4.7% • Improving performance in B2B. B2C segment continued strongly. • International digital services revenue increased by 21% • In Finland, post-paid churn remained at the sam
Slide 3: Good EBITDA growth driven by MSR and efficiency
INTERIM REPORT Q2 2024 Good EBITDA growth driven by MSR and efficiency Revenue Mobile service revenue Revenue, €m YoY change, % Increase MSR, €m YoY change,% • Mobile and fixed 5.4% 5.8% • 5G upselling 2.2% 2.0% 0.1% 1.6% 4.2% 4.4% 4.7% -1.0% services continuing • IDS and M&A • Product Decrease chan
Slide 4: EBITDA growth in both segments
INTERIM REPORT Q2 2024 EBITDA growth in both segments Revenue and EBITDA1) Consumer Customers Revenue, €m EBITDA, €m EBITDA-% Revenue -1% - End of video streaming cooperation (Viaplay) 41% 41% 41% - Equipment sales 39% 38% - Interconnection and traditional fixed-line services + Mobile services EBITD
Slide 5: Strategy execution
INTERIM REPORT Q2 2024 Strategy execution Strategic focus areas Mission Increase mobile and fixed service revenues A sustainable Grow digital service businesses future through digitalisation Improve efficiency and quality 5
Slide 6: Migration to higher speeds continuing
INTERIM REPORT Q2 2024 Migration to higher speeds continuing • 55% (47%) of voice subscriptions at >200 Mbps 5G smartphone and speed penetration1) speeds1) • Speed matters. Upselling to higher speeds continuing. • 5G base is growing, 4G decreasing 62% 59% 57% 55% 53% 55% 51% 51% 52% 45% 47% 41% 43%
Slide 7: Elisa leading in 5G, increasing demand met in fibre network
INTERIM REPORT Q2 2024 Elisa leading in 5G, increasing demand met in fibre network • 5G population coverage reached over 94% in Finland and over 76% in Estonia • Average billing increase of over €3 in 5G upgrades intact • Elisa pioneering standalone 5G network services • Standalone 5G offering expan
Slide 8: IDS project implementations picking up
INTERIM REPORT Q2 2024 IDS project implementations picking up • YoY revenue increased by 21% • Growth boosted by acquisitions and good organic growth Revenue and YoY growth • Good order backlog and intake Revenue, €m YoY change, % • Full-year double-digit organic growth target remains • Successfully
Slide 9: Solid performance in domestic digital services
INTERIM REPORT Q2 2024 Solid performance in domestic digital services Entertaining video services Strengthened competitiveness in IT services • Elisa original series celebrate 10th anniversary and • AI and automation increasingly incorporated into IT 40th original series services and service product
Slide 10: 66th in the world Best of Finnish companies
66th in the world Best of Finnish companies 10
Slide 11: Outlook and guidance for 2024
INTERIM REPORT Q2 2024 Outlook and guidance for 2024 The development of the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, there is continuing uncertainty in e.g. inflation, energy prices and global supply chains relating to Russia’s w
Slide 12: Financial review Q2 2024
Nise Financial review Q2 2024
Slide 13: Good EBITDA growth continuing
INTERIM REPORT Q2 2024 Good EBITDA growth continuing EUR million 1) Q2/24 Q2/23 Change % 2023 Q2 2024 YoY revenue change: €9m Revenue 541.4 532.7 8.6 1.6% 2,180 -6 Other operating income 1.8 1.3 0.5 43.6% 10 14 -3 Materials and services -192.4 -193.5 1.1 -0.5% -818 Employee expenses -106.8 -106.8 0.
Slide 14: Growth in Estonia
INTERIM REPORT Q2 2024 Growth in Estonia • Revenue increased by EUR 5m, +9% Revenue Revenue, €m YoY change, % • Positively impacted by fixed revenue (software licences and equipment) and negatively by interconnection and mobile equipment sales 7.7% 6.4% 8.1% 9.4% -5.0% • EBITDA increase 1% • Despite
Slide 15: CAPEX in line with guidance
INTERIM REPORT Q2 2024 CAPEX in line with guidance • CAPEX €84m (70), excl. licences, lease CAPEX1) agreements and acquisitions €81m (64) CAPEX / sales1) % 13% 16% 15% 12% 11% • Consumer €58m (45) • Corporate €27m (24) 91 81 64 72 58 • Main CAPEX areas • 5G coverage increase • Fibre and other networ
Slide 16: Comparable cash flow affected by higher CAPEX
INTERIM REPORT Q2 2024 Comparable cash flow affected by higher CAPEX • Comparable cash flow €94m (108), decrease 13% Cash flow and comparable cash flow, €m + Higher EBITDA, lower licence fee payments Comparable - Higher CAPEX and interest, NWC change less positive 94 73 86 108 107 76 • H1 comparable
Slide 17: Efficient capital structure and good returns
INTERIM REPORT Q2 2024 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA • Net debt / EBITDA 1.8× (target 1.5–2×) 1.8 1.7 1.7 1.7 1.8 • Equity ratio 35% (target >35%) 1,383 1,207 1,219 1,276 1,304 • Return ratios at good leve
Slide 18: Q&A
Q&A
Slide 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Revenue 541.4 534.5 563.3 544.7 532.7 539.7 562.6 534.0 521.5 YoY growth 1.6% -1.0% 0.1% 2.0% 2.2% 5.5% 5.1% 7.6% 7.7% Other operating income 1.8 0.7 2.4 1.7 1.3 4.5 3.5 1.3 1.1 Materials and services -192.4 -1
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q2/24 Q2/23 Change1) % H1/24 H1/23 Change1) % 2023 EBITDA 189.9 182.7 7.3 4% 369.7 366.1 3.6 1% 756 Change in receivables 2.9 7.2 -4.3 -59% 51.3 51.1 0.2 0% -2 Change in inventories 0.4 7.0 -6.6 -94% 1.8 7.5 -5.8 -76% 15 Change in payables 12.1 7.8 4.3 5
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 EBITDA 190 180 191 199 183 183 185 194 177 Change in receivables 3 48 -53 0 7 44 -42 0 -17 Change in inventories 0 1 8 0 7 0 5 -9 -3 Change in payables 12 -49 46 7 8 -59 63 -9 6 Change in NWC 15 1 1 6 22
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Bonds and notes 895 894 1,141 1,140 894 893 892 891 890 Commercial papers 230 183 35 152 241 159 125 169 180 Credit facility 40 70 0 70 100 0 0 0 0 Loans from financial institutions 20
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