Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Non-Deal Roadshow (November 2005)
22 slides from Elisa Oyj Class A's roadshow presentation, November 2005
Slide 1: Roadshow November 2005
Roadshow November 2005 Elisa Corporation Roadshow, November 2005 1
Slide 2: Contents
Contents • Elisa today • Q3 2005 and financial highlights • Elisa and the Finnish telecoms market review • Saunalahti transaction • Future outlook Elisa Corporation Roadshow, November 2005 2
Slide 3: Elisa at a glance
Elisa at a glance • Full range of telecom services Revenue per segment in Q3 2005 − No 1 fixed network operator Others 1.5% − No 1 broadband operator Mobile 51.7% − No. 2 mobile operator in Finland and in Estonia Fixed 46.8% • Offering Pan-European and global scope through partnerships − Vodafone an
Slide 4: Elisa Q3 2005 highlights
Q3 2005 financial highlights Elisa Q3 2005 highlights • Elisa further strengthened its market position, with growth continuing in both mobile and broadband subscriptions • Competition authorities approved the Saunalahti deal • EBITDA and EBIT in line with guidance • Competition environment and chang
Slide 5: Profitability in line with guidance
Q3 2005 and financial highlights Profitability in line with guidance • Revenue EUR 326m (333) Revenue and EBITDA-% − sale of non-core businesses − comparable revenue increased slightly 351 • EBITDA EUR 85m (112) 333 333 336 326 • EBIT EUR 33m (57) • Pre-tax profit EUR 28m (50) • EPS EUR 0.15 (0.27)
Slide 6: Growth in mobile usage and broadband
Finnish telecom market Growth in mobile usage and broadband • Telecom market growth very modest − Mobile penetration above 90% − Growth in mobile MOU more than 10% − Growth in SMS more than 15%, − Price erosion offsets usage growth − Fixed line broadband growth about 70% − Annual decrease in analogu
Slide 7: Market shares in Q3 2005
Finnish telecom market Market shares* in Q3 2005 Others 1.1% Others 6.2% Finnet 15.1% Elisa 37.6% DNA 14.5% Elisa 27.9% Elisa 31.6% HTV** 5.8% Finnet 23.9% Sauna- Saunalahti lahti 3.2% 9.3% Sonera 47.2% Sonera 29.3% TeliaSonera 47.6% Mobile network operators Mobile service operators Fixed broadband
Slide 8: Mobile handset subsidies in 3G
Finnish telecom market Mobile handset subsidies in 3G • The Ministry of Transport and Communications proposes that the prohibition on bundling 3G mobile phones and subscriptions will be removed • The proposal would enable a 24-month SIM-lock • The law would take effect in early 2006 • Elisa’s strong
Slide 9: Growth in subscriptions, lower churn
Market review, Elisa’s mobile business in Q3 Growth in subscriptions, lower churn Subscriptions* and net adds • Net adds 16,000 in Q3 1481 • Total amount of subscriptions in Elisa’s 1 500 1 438 1465 1 384 network about 2 million 1 368 • Continued fierce competition 1 300 − churn 27.2% (21.6) − ARPU
Slide 10: Market leadership in broadband strengthened
Market review, Elisa’s fixed network business in Q3 Market leadership in broadband strengthened Broadband subscriptions 400 000 • ADSL subscriptions growth 87% yoy 345 898 − strongest growth among the 350 000 operators 308 183 300 000 • Net adds 38,000 in Q3 269 232 • Decrease in analogue subscripti
Slide 11: Elisa strategy
Development of operations Elisa strategy 2005 - 2003 - New markets Strengthening market position Integration in core markets of One Elisa Elisa Corporation Roadshow, November 2005 11
Slide 12: Saunalahti deal accepted
2005 - Elisa - Saunalahti 2003 - New markets Saunalahti deal accepted Strengthening market position Integration in core markets of One Elisa • The decision of the Finnish Competition Authority will provide a solid platform for developing a competitive and financially strong Finnish operator − The Sa
Slide 13: Better services for Finnish customers
Elisa - Saunalahti Better services for Finnish customers • Elisa to invest in Finland and in new services − reliable and extensive network − strong emphasis on new services • All present services of Elisa and Saunalahti will continue • The Saunalahti brand will remain, with its own strong features e
Slide 14: Progress with the transaction
Elisa - Saunalahti Progress with the transaction • Share Exchange Offer will end on 4 November 2005 • The result of the Share Exchange Offer − preliminary result on or about 7 November − Final result on or about 11 November • Increase in the share capital in the Trade Register on or about 15 Novembe
Slide 15: Financial impact of Saunalahti transaction
Elisa - Saunalahti Financial impact of Saunalahti transaction • Purchase price approx. EUR 357m (if the deal is 100% share exchange with a share price of EUR 14) • Approximate purchase price allocations − amortisable intangible assets EUR 100m − customer relationships − Saunalahti brand − goodwill E
Slide 16: Outlook for Q4 2005
Outlook for Q4 2005 • Market − Keen competition will continue − Elisa will continue to strengthen its market position • Financial position − Comparable revenue at 2004 level − Q4 2005 comparable EBITDA and EBIT slightly lower than in previous quarters in 2005, taking into account the additional traf
Slide 17: Roadshow November 2005
Roadshow November 2005 Elisa Corporation Roadshow, November 2005 17
Slide 18: Execution of non-core assets' sale
Appendix slide Execution of non-core assets’ sale Estimated Book Execution Remaining EUR million value in Feb value price value 2005 1) Comptel 128 26 2) 66 3) 33 4) Yomi-IT, Estera and others 20 – 25 20 20 5) - Non-core properties 60 – 70 60 25 45 – 50 Receivables from the sale of German business 4
Slide 19: Consolidated Cash flow statement
Appendix slide Consolidated Cash flow statement CONSOLIDATED CASH FLOW STATEMENT EUR million Q3 2005 Q2 2005 Q1 2005 Q4 2004 Q3 2004 Q2 2004 Cash flow from operating activities Profit before tax 28 113 39 65 50 41 Adjustments to profit before tax 53 -11 47 34 57 46 Change in working capital -19 8 -2
Slide 20: Financial situation
Appendix slide Financial situation FINANCIAL SITUATION (EUR million) 30 Sep 2005 30 Jun 2005 31 Mar 2005 31 Dec 2004 30 Sep 2004 Interest-bearing debt Bonds and notes 455 458 463 467 570 Loans from the Pension fund 0 0 64 75 80 Loans from financial institutions 0 1 0 0 2 Financial leases 59 63 61 68
Slide 21: Group's quarterly key figures
Appendix slide Group’s quarterly key figures Group EURm Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Revenue 326 336 333 351 333 339 333 EBITDA 85 170 97 122 111 101 120 EBITDA-% 26 % 51 % 29 % 35 % 33 % 30 % 36 % Clean EBITDA 85 84 86 104 111 101 120 Clean EBITDA-% 26 % 25 % 26 % 30 % 33 % 30 % 36 % E
Slide 22: Segments' quarterly key figures
Appendix slide Segments’ quarterly key figures Segments Mobile Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Revenue 183 180 179 180 179 175 179 ARPU, EUR 31,2 33,8 34,6 37,0 37,5 38,2 38,6 Churn, % 27,2 32,3 33,5 38,9 21,6 29,4 47,4 Subscriptions, total 1 962 775 1 465 066 1 438 452 1 383 515 1 368 515