CEO s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO

Transcription

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2 Agenda CEO s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO 2

3 CEO s review Q highlights Segment review Consumer Customers Corporate Customers Execution of the strategy Progress of new services Outlook for

4 Q highlights YoY revenue growth continued Good profitability and cash flow Mobile subscription and usage growth continues Voddler to strengthen IPTV Elisa Viihde offering Focus on the smartphone market Decision on extraordinary dividend of 0.50 per share, total amount 77.9m One of the best dividend yields in the sector 4

5 Q financial highlights Solid revenue development Revenue 363m (360) Growth in mobile services Decrease in fixed business 34 % 35 % 33 % 33 % 36 % 33 % 33 % 33 % 35 % Growth in online and ICT service business EBITDA 127m (131), margin 35% CAPEX 42m (40), 11% of revenue According to target ( 12 %) Net debt 725m (719 in 2009) Cash flow 29m Net debt / EBITDA 1.5 (1.5) Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Revenue, EURm EBITDA-% 5

6 Q operational highlights Mobile subscription growth continued Mobile net adds 102,500 in Q3/10 Growth in both customer segments Growth in mobile broadband, postpaid and prepaid Estonia +24,000 subscriptions QoQ growth in fixed broadband subscriptions resumed Growth 2,200 in Q3/ Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Mobile subs ('000) Fixed broadband subs ('000) 6

7 Q operational highlights Increased competition in mobile broadband Growth in mobile usage Outgoing minutes growth 8% YoY SMS growth 14% YoY Mobile churn 18.1% (14.5) Competition mainly in mobile broadband, but strong subscription growth regardless 14,1 % 12,0 % 15,9 % 14,0 % 14,7 % 15,4 % 14,5 % 14,7 % ,1 % Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Usage (outgoing minutes, million) Churn 7

8 Business Segments 8

9 Q Consumer Customers Revenue growing Revenue 225m (220) 37 % Growth in mobile customer billing and online services 32 % 33 % 32 % 33 % 33 % 34 % 31 % 34 % Decrease in fixed business EBITDA 77m (81), margin 34% Increase in sales costs New service launches Focus on customer service Stable mobile SAC per subscription CAPEX 26m (21) Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Revenue, EURm EBITDA-% 9

10 Q Corporate Customers Corporate Customer business at solid level Revenue 139m (139) Increase in mobile revenue 39 % 37 % 34 % 33 % 36 % 34 % 34 % 36 % Growth in ICT services 31 % Decrease in fixed business EBITDA 50m (50), margin 36% 155 CAPEX 16m (19) Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Revenue, EURm EBITDA-% 10

11 Strategy execution New services and new markets Strengthening market position in core markets Integration of One Elisa 11

12 Strategy execution Growth in 3G data users continued Number of active mobile data users in Elisa s network, thousands Active 3G users Active GPRS users Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 12

13 Voddler to strengthen IPTV Elisa Viihde offering Voddler s services provided first to Elisa customers in Finland More than 2,500 movies, television series and documents Ad-based video service, 80% of the offering is free of charge Elisa provides Voddler s media services in Finland 13

14 Focus on the smartphone market Smartphone market is picking up Creates new demand for mobile data services Many benefits to customers Wide variety of applications and easy to use for consumers Productivity improvements and process rationalisation for corporate Android iphone Symbian 14

15 Omaguru : Seamless technical support for customers Comprehensive support regarding the use of digital devices, systems and applications Targeted to households and SOHO customers Specialised help desk Personalised customer service Specialists available online 15

16 Outlook for 2010 Positive trends of the general economy have continued Competition remains challenging Revenue at the same level as in 2009 EBITDA excluding one-offs at the same level as in 2009 CAPEX per cent of revenue 16

17 Agenda CEO s review Veli-Matti Mattila, CEO Financial review Jari Kinnunen, CFO 17

18 Growth in revenue continued EUR million Q3/10 Q3/09 Δ 1-9/10 1-9/09 Δ 2009 Revenue Other operating income Operating expenses EBITDA EBITDA-% 35% 37% 33% 34% 34% Depreciation and amortisation EBIT EBIT-% 20% 22% 18% 19% 19% Profit before tax Profit before tax excl. one-off item Income taxes Net profit Net profit excl. one-off item EPS, EUR/share EPS, EUR/share excl. one-off item

19 YoY Revenue growth Mobile + Online Services + ICT services + Estonia +/- Cable TV - PSTN - Broadband Q3/09 Interconnection and roaming Equipment sales Services Q3/10 19

20 Sales costs affected OPEX OPEX decreases Network operating expenses Interconnections and roaming Credit losses reduced OPEX increases Sales costs Stable SAC per subscription New service development Customer service Employee expenses Collective labor agreements, 2.6% increase in September 2009 Videra acquisition in Q2/2010 EURm Materials and services Employee benefit expenses Other operating expenses Q3 09 Q4 09 Q1 10 Q2 10 Q Total expenses Depreciation

21 CAPEX/Sales in line with guidance Q3 CAPEX EUR 42m (40) CAPEX/Sales 11% (11%) Q1-Q3 CAPEX EUR 142m (117) CAPEX/Sales 12% (10%) Q3 CAPEX by segments Consumer EUR 26m (21) Corporate EUR 16m (19) Major CAPEX areas 3G network Fixed access and backbone networks IT systems Customer equipment 17 % 17 % 13 % 11 % 2 11 % 11 % 11 % 10 % 10 % Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Consumer Corporate Shares Capex/Sales 20 % 15 % 10 % 5 % 0 % -5 % -10 % -15 % -20 % 21

22 Cash flow EUR million Q3/10 Q3/09 Δ 1-9/10 1-9/09 Δ 2009 EBITDA Change in receivables Change in inventories Change in payables Change in NWC Financials (net) Taxes for the year Taxes for the previous year Taxes CAPEX Investments in shares Sale of assets and adjustments Cash flow after investments

23 Liquidity position is good Bond and Bank loan maturities Cash and undrawn committed facilities EUR 317m (324m) Revolving Credit Facilities EUR 170m maturing Jun 2012 EUR 130m maturing Nov 2014 Fully undrawn Q3/10 Commercial Paper Program EUR 68m in use, back up with RCF Credit ratings constant since 2003 S&P BBB/Stable outlook Moody s Baa2/Stable outlook Bonds Loans 23

24 Estonian growth continued Slight increase in revenue Growth in corporate segment Consumer segment flat 401,800 mobile subscriptions 37 % 39 % 36 % 36 % 35 % 32 % 31 % 28 % 34 % + 47,500 YoY + 24,000 QoQ EUR million Q3/10 Q3/ Revenue EBITDA EBITDA-% EBIT EBIT-% CAPEX Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Revenue EBITDA-% 24

25 Capital structure in line with targets Capital structure Net debt / EBITDA 1.5 Gearing 84%, Equity ratio 45% 1,7 1,7 1,8 1,6 1,5 1,5 1,7 1,5 1,5 Target setting Net debt / EBITDA 1.5 2x Equity ratio >35% % 43 % 41 % 45 % 48 % 46 % 40 % 42 % 45 % Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Net Debt, EURm Equity ratio % Net Debt/EBITDA 25

26 Extraordinary dividend of EUR 0.50 EUR 0.50 per share Total amount EUR 77.9m Ex-date 25 October 2010 Payment 3 November 2010 Based on the AGM EUR 100m authorisation After the payment Dividend yield 9% * Pro Forma Q3/10 net debt/ebitda % % % 110 % 77 % % % % 0 % 0 % e Dividend / capital repayment Buy-back Pay-out ratio % 26 * Total profit distribution /share price as ( 15.96)

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28 APPENDIX SLIDE Consolidated cash flow statement EUR million Q Q Q Q Q Q Q Q Q Cash flow from operating activities Profit before tax Adjustments to profit before tax Change in working capital Cash flow from operating activities Received dividends and interests and interest paid Taxes paid Net cash flow from operating activities Cash flow in investments Capital expenditure Investments in shares and other investments Proceeds from asset disposal Net cash used in investment Cash flow after investments Cash flow in financing Share Buy Backs and sales (net) 0-43 Change in interest-bearing receivables Change in long-term debt Change in short-term debt Repayment of financing leases Dividends paid Cash flow in financing Change in cash and cash equivalents

29 APPENDIX SLIDE Financial situation EUR Million 30 Sep Jun Mar Dec Sep Jun Mar Dec Sep 2008 Interest-bearing debt Bonds and notes Commercial Papers Loans from financial institutions Financial leases Committed credit lines 1) Others 2) Interest-bearing debt, total Cash and cash equivalents Interest-bearing receivables Net debt 3) ) The committed credit lines are EUR 170 million and EUR 130 million revolving credit facilities with five banks, which Elisa Corporation may use flexibly on agreed pricing. The loan arrangements are valid until 17 June 2012 and 23 November ) Redemption liability for minorities 3) Net debt is interest-bearing debt less cash and interest-bearing receivables. 29