Slide 1: Interim Report Q1 2019
Q1 2019 Interim Report Q1 2019 17 APRIL 2019
Slide 2: Q1 2019 highlights
INTERIM REPORT Q1 2019 Q1 2019 highlights • Revenue slightly down – Equipment sales, interconnection revenue, divestments • Comparable EBITDA at last year’s level • Mobile service revenue growth 2.1% – Up-selling continues, good demand for premium subscriptions • Post-paid voice churn up from 18.7%
Slide 3: EBITDA at same level despite keen competition
INTERIM REPORT Q1 2019 EBITDA at same level despite keen competition Revenue Mobile service revenue Revenue, €m YoY change.% MSR, €m YoY change,% 8,1% Decrease 3,9% • 4G up-selling 2,8% 1,6% 1,1% 1,5% 2,1% 0,0% -0,4% -2,2% • Equipment sales continues • Interconnection • Product changes revenue • Cam
Slide 4: Growth in consumer segment EBITDA continued
INTERIM REPORT Q1 2019 Growth in consumer segment EBITDA continued Corporate EBITDA impacted by divestments and fixed services Consumer Customers Revenue and EBITDA1) Revenue, €m EBITDA, €m EBITDA-% Revenue -2% - Equipment sales and interconnection revenue - Divested businesses 38% 38% 36% 36% 35% -
Slide 5: Strategy execution
INTERIM REPORT Q1 2019 Strategy execution Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 5
Slide 6: Steady growth in 4G and up-selling continues
INTERIM REPORT Q1 2019 Steady growth in 4G and up-selling continues Growth in 4G smartphone penetration Smartphone penetration1),% • 83% of customers use a smartphone 81% 82% 83% 77% 78% 79% 80% 80% 75% – 97% (93%) 4G-capable • 91% of phones sold 4G-capable Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
Slide 7: Expansion of digital service businesses continued
INTERIM REPORT Q1 2019 Expansion of digital service businesses continued Leveraging core business capabilities to provide interesting growth perspective Domestic digital services International digital services • Elisa original series Arctic Circle became all- • Number of Videra’s video conferencing
Slide 8: Largest Finnish company awarded Great Place to Work for three years running
INTERIM REPORT Q1 2019 Largest Finnish company awarded Great Place to Work for three years running • Elisa again one of Finland’s best work places in the Great Place to Work 2019 survey • Elisa is the largest listed company in Finland awarded for the third year in a row • Elisians value the “Elisa I
Slide 9: Outlook and guidance for 2019
INTERIM REPORT Q1 2019 Outlook and guidance for 2019 The positive development of the macroeconomic environment is decelerating in Finland. Competition remains challenging. • Revenue same level or slightly higher than in 2018 • Comparable EBITDA same level or slightly higher than in 2018 • CAPEX maxi
Slide 10: Financial performance
Q1 2019 Financial performance INTERIM REPORT Q1 2019
Slide 11: Q1 2019 according to guidance
INTERIM REPORT Q1 2019 Q1 2019 according to guidance EUR million 1) Q1/19 Q1/18 Change % Q1 2019 revenue change YoY, €-10m Revenue 440 450 -9.8 -2.2 % Other operating income 1 1 -0.4 -37.0 % ~0 ~0 Materials and services -161 -170 9.4 -5.5 % -2 Employee expenses -81 -79 -1.6 2.0 % -5 Other operating
Slide 12: Estonia revenue down, EBITDA intact
INTERIM REPORT Q1 2019 Estonia revenue down, EBITDA intact • Revenue -3%, EBITDA same level Revenue Revenue, €m YoY change, % – Mobile and fixed services growing 75,2% – Equipment sales decreased – Post-paid voice churn 7.7% (8.2% in Q4) 7,8% 5,2% 6,0% -3,2% – Mobile post-paid base +200, pre-paid -7
Slide 13: CAPEX in line with guidance
INTERIM REPORT Q1 2019 CAPEX in line with guidance • CAPEX €57m, excl. IFRS 16 change CAPEX €51m (53) CAPEX / sales1) % Consumer, €m Corporate, €m 12% 13% 11% 14% 12% – Consumer €37m (35) – Corporate €19m (17) 20 22 17 16 17 41 44 • Main CAPEX areas 35 33 33 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 – 4G capaci
Slide 14: Strong cash flow growth
INTERIM REPORT Q1 2019 Strong cash flow growth • Cash flow €68m (52) Cash flow, €m – Cash flow growth +30% – Positive change in NWC 81 87 – Lower CAPEX, higher EBITDA 52 52 68 – Positive impact from IFRS 16 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 • Strong cash conversion continues Cash conversion Change in ne
Slide 15: Efficient capital structure and good returns
INTERIM REPORT Q1 2019 Efficient capital structure and good returns • Capital structure according to target Net debt Net debt, €m Net debt / EBITDA – Net debt / EBITDA 1.7 (target 1.5–2x) 1,8 2,0 1,8 1,7 1,7 – Equity ratio 41.9% (target >35%) 1 124 1 073 1 068 1075 962 – IFRS 16 increases assets and
Slide 16: Competitive remuneration continues
INTERIM REPORT Q1 2019 Competitive remuneration continues • Dividend €1.75 per share Dividend Dividend per share, € Pay-out ratio1) % Dividend YoY growth – Dividend growth +6% 94% 92% 93% 89% 90% – Total amount €280m 6.1% 10.0% – Paid on 16 April 2019 7.1% 6.1% 1.5% • Pay out ratio1) 90% 1,65 1,75 1
Slide 17: Q&A
Q&A
Slide 18: 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 19: P&L by quarter
APPENDIX P&L by quarter EUR million Q1/19 Q4/18 Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Revenue 439.7 470.6 453.9 457.5 449.6 472.5 453.9 445.1 YoY growth -2.2 % -0.4 % 0.0 % 2.8 % 8.1 % 8.9 % 8.4 % 13.3 % Other operating income 0.7 0.9 1.8 6.0 1.1 2.6 1.5 0.8 Materials and services -160.5 -185.1 -172.9
Slide 20: Cash flow YoY comparison
APPENDIX Cash flow YoY comparison EUR million Q1/19 Q1/18 Change1) 2018 EBITDA 155 153 2 640 Change in receivables 9 7 2 6 Change in inventories 6 7 -1 3 Change in payables -7 -26 18 -30 Change in NWC 8 -12 19 -21 Financials (net) -16 -12 -5 -17 Taxes for the year -16 -15 -1 -69 Taxes for the previo
Slide 21: Cash flow by quarter
APPENDIX Cash flow by quarter EUR million Q1/19 Q4/18 Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 EBITDA 155 158 169 160 153 151 165 148 Change in receivables 9 4 -23 19 7 -33 -15 -23 Change in inventories 6 -7 2 1 7 -5 0 -8 Change in payables -7 -1 2 -5 -26 36 -4 28 Change in NWC 8 -4 -20 15 -12 -1 -20 -4
Slide 22: Debt structure
APPENDIX Debt structure EUR million at the end of the quarter Q1/19 Q4/18 Q3/18 Q2/18 Q1/18 Q4/17 Q3/17 Q2/17 Bonds and notes 939 767 766 764 763 767 766 766 Commercial papers 10 107 179 267 151 115 207 258 Loans from financial institutions 250 250 200 205 205 209 210 216 Financial leases 1) 90 25 2
Slide 23: 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