Elisa Oyj

Earnings Release • Oct 21, 2011

Third Quarter Results 2011

21 October 2011

ELISA STOCK EXCHANGE RELEASE 21 OCTOBER 2011 AT 8:30am ELISA'S INTERIM REPORT JANUARY-SEPTEMBER 2011

Third quarter 2011

• Revenue was EUR 378 million (363)
• EBITDA was EUR 135 million (127), EBIT was EUR 82 million (73)
• Profit before tax amounted to EUR 74 million (68)
• Earnings per share was EUR 0.36 (0.32)
• Cash flow after investments was EUR 56 million (29)
• Mobile ARPU was EUR 19.0 (19.3 in the second quarter)
• Mobile churn increased slightly to 12.7 per cent (11.9 in the second quarter, 18.1 in Q3/2010)
• The number of mobile subscriptions increased by 103,000 during the quarter
• The number of fixed broadband subscriptions increased by 7,900 on the previous quarter
• Elisa Viihde IPTV subscriptions exceeded 100,000
• Net debt / EBITDA was 1.6 (1.6 at the end of 2010) and gearing 94 per cent (93 at the end of 2010)

January-September 2011

• Revenue was EUR 1,129 million (1,081)
• EBITDA was EUR 374 million (362), EBIT EUR 216 million (199)
• Cash flow after investments was EUR 142 million (144)

Key indicators:

EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Revenue	378	363	1,129	1,081
EBITDA	135	127	374	362
EBIT	82	73	216	199
Profit before tax	74	68	193	131
Profit before tax excl. non-recurring items	74	68	193	175
Earnings per share, EUR	0.36	0.32	0.93	0.63
EPS, excl. non-recurring items	0.36	0.32	0.93	0.84
Capital expenditures	45	42	140	127

1-9/2011 EBITDA excluding non-recurring items EUR 375 million

Financial position and cash flow:

EUR million	30.9.2011		30.9.2010	31.12.2010
Net debt		793		776
Net debt / EBITDA 1)	1.6		725 1.5	1.6
Gearing ratio, %	94.3 84.2		93.2
Equity ratio, %	43.4		44.8	42.5
EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Cash flow after
investments	56	29	142	144

1) (interest-bearing debt – financial assets) / (4 previous quarters' EBITDA exclusive of non-recurring items)

Additional information regarding the Key Performance Indicators is available on www.elisa.com/investors: Elisa Operational Data Q3 2011.xls.

CEO Veli-Matti Mattila:

"Elisa delivers a strong result, exceeding four million mobile subscriptions

Elisa's earnings grew strongly during the third quarter of 2011, and the company's revenue developed favorably. Despite tough competition, the demand for Elisa's services remained high.

Our mobile subscription base grew by more than 100,000 during the third quarter of the year, and we have reached the milestone of four million subscriptions. Elisa Viihde IPTV's strong development has continued and the number of customers has exceeded 100,000. Boosted by new services and service bundles, the number of fixed network broadband subscriptions increased by nearly 8,000.

The demand for mobile data services continued to grow rapidly, spurred by the high number of dongle and smartphone users. Customers are also increasingly choosing a monthly data plan so they don't have to worry about the volume of data transfer. In addition, business use of smartphones is on the rise.

Elisa introduced the My Invoice (Oma Lasku) service for businesses. The service enables employees to pay for personal purchases and mobile services through their business subscriptions. Personal purchases are invoiced separately through Elisa My Invoice, which can help companies save hundreds of thousands of euros per year by not paying for services unrelated to business. At the same time, the opportunity to use business phones for personal matters increases employee satisfaction.

For consumers, Elisa introduced new features and fascinating content through Elisa Viihde, the most innovative IPTV entertainment platform, and the Elisa Kirja e-book service. Elisa Viihde was complemented with a karaoke service that offers a broad selection of Finnish and foreign songs. Finnish comic strips were also made available on smartphones and tablets for the first time through Elisa Kirja.

In Finland's 'Best of the Year 2011' customer service competition, Elisa's Consumer Customers unit was awarded the Best Practices honorary mention for investing in continuous development, making full use of customer feedback and providing support for customer service personnel. Concrete measures, such as real-time order monitoring and user-friendly technical support websites, have considerably improved customer service.

We will continue our determined work to further improve productivity and customer satisfaction. Elisa creates services that improve productivity and provide enhanced user experiences. Combined with our strong investment capability, this creates a solid foundation for the future."

ELISA CORPORATION

Additional information: Mr Veli-Matti Mattila, CEO, tel. +358 10 262 2635 Mr Jari Kinnunen, CFO, tel. +358 10 262 9510 Mr Vesa Sahivirta, IR Director tel. +358 10 262 3036

Distribution: NASDAQ OMX Helsinki Principal media www.elisa.com

INTERIM REPORT JANUARY-SEPTEMBER 2011

The Interim report has been prepared in accordance with the IFRS recognition and measurement principles. The information presented in this interim report is unaudited.

Market situation

The competitive environment has been intense but stable in Finland. The mobile subscription base and the use of data services continued to evolve favourably. The mobile smartphone market is growing rapidly. With a broader assortment now available, approximately two thirds of the mobile handsets sold are smartphones. This further increases the use of mobile data services. Other factors contributing to the growth have been the use of multiple terminal devices for different purposes and mobile broadband services.

The number and usage of traditional fixed network subscriptions decreased at the same pace as in the previous quarters. The number of fixed broadband subscriptions increased mainly due to growth in new services.

Revenue, earnings and financial position

Revenue and earnings:

EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Revenue	378	363	1,129	1,081
EBITDA	135	127	374	362
EBITDA-%	35.7	35.0	33.1	33.5
EBIT	82	73	216	199
EBIT-%	21.7	20.2	19.1	18.4

Third quarter 2011

Revenue increased by 4 per cent on the previous year. Revenue growth was driven by increased equipment sales, growth in Estonia and mobile services as a result of an increased number of subscriptions. Consumer Customers' online services, e.g. Elisa Viihde IPTV service also contributed positively to revenue growth. The decrease in usage and subscriptions of traditional fixed telecom services in both segments affected revenue negatively, as did the decrease in mobile termination rates.

EBITDA increased by 6 per cent on the previous year. EBITDA growth was mainly due to growth in revenue, cost efficiency measures and somewhat lower service development and sales expenses. The EBITDA margin was negatively affected by the increase in low margin equipment sales.

Financial income and expenses totalled EUR -8 million (-5). The previous year's financial expenses decreased due to a foreign exchange rate change related to a USD provision of CDO guarantee. Income taxes in the income statement amounted to EUR -18 million (-17). Elisa's earnings after taxes were EUR 56 million (51). The Group's earnings per share (EPS) amounted to EUR 0.36 (0.32).

January-September 2011

Revenue increased by 5 per cent on last year mainly attributable to the same reasons as in the third quarter.

EBITDA improved by 3 per cent on the previous year mainly due to growth in revenue and cost efficiency measures.

Financial income and expenses totalled EUR -23 million (-69). Income taxes in the income statement amounted to EUR -49 million (-32). Elisa's earnings after taxes were EUR 145 million (99). The Group's earnings per share (EPS) amounted to EUR 0.93 (0.63). The previous year's financial income and expenses, income taxes, earnings after taxes and EPS were affected by the CDO guarantee provision.

Financial position:
EUR million	30.9.2011		30.9.2010	31.12.2010
Net debt		793	725	776
Net debt / EBITDA 1)		1.6	1.5	1.6
Gearing ratio, %		94.3 84.2		93.2
Equity ratio, %		43.4	44.8	42.5
EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Cash flow after
investments	56	29	142	144

1) (interest-bearing debt – financial assets) / (4 previous quarters' EBITDA exclusive of non-recurring items)

Third quarter 2011

July–September cash flow after investments was EUR 56 million (29). The change was mainly due to changes in net working capital and improved EBITDA.

January-September 2011

Elisa's cash flow after investments was EUR 142 million (144). The change in net working capital affected cash flow negatively, while the increase in EBITDA and lower tax payments has a positive cash flow effect.

Changes in corporate structure

On 13 July 2011, the draft terms of the merger of Elisa Corporation and its wholly-owned subsidiary Saunalahti Group Oyj were registered. Following the procedure pursuant to the Finnish Companies Act, Elisa's Board of Directors can make a decision regarding the merger. The estimated time of the merger is 31 December 2011.

Consumer Customer business

EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Revenue	234	225	685	656
EBITDA	81	77	221	219
EBITDA-%	34.7	34.4	32.2	33.3
EBIT	51	46	131	125
CAPEX	27	26	82	76

Third quarter 2011

Consumer Customer business revenue increased by 4 per cent. Revenue growth was driven by increased equipment sales, growth in Estonia and mobile services as a result of an increased number of subscriptions. The growth trend in online services continued. The decrease in fixed network usage and subscriptions, and lower mobile termination rates negatively affected revenue. EBITDA increased by 5 per cent mainly due to revenue growth, cost efficiency measures and somewhat lower service development and sales expenses. The EBITDA margin was negatively impacted by growth in low margin equipment sales.

January-September 2011

Revenue increased by 4 per cent. The growth in revenue was mainly attributable to the same reasons as in the third quarter. EBITDA increased by 1 per cent due to revenue growth. The EBITDA margin was also negatively impacted by growth in low margin equipment sales.

Corporate Customer business

EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Revenue	144	139	444	424
EBITDA	54	50	153	143
EBITDA-%	37.3	35.9	34.5	33.7
EBIT	31	27	85	74
CAPEX	17	16	57	51

Third quarter 2011

Corporate Customers business revenue increased 4 per cent. Revenue increased as a result of the growth in ICT services due in part to the previous year's acquisitions, and equipment sales. The decline in usage and subscriptions in traditional fixed telecom services and lower mobile termination rates decreased revenue. EBITDA increased by 8 per cent. The increase in EBITDA was attributable mainly to the revenue growth and cost efficiency measures.

January-September 2011

Revenue increased by 5 per cent and EBITDA by 7 per cent, again due mainly to the same reasons presented in the third quarter.

Personnel

In January-September, the average number of personnel at Elisa was 3,749 (3,421). Personnel by segment at the end of the period:

	30.9.2011	30.9.2010	31.12.2010
Consumer Customers	2,102	2,054	2,084
Corporate Customers	1,599	1,430	1,581
Total	3,701	3,484	3,665

Compared to the corresponding period last year, the number of personnel grew mainly as a result of the Appelsiini acquisition.

Investments

EUR million	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Capital expenditures, of which	45	42	140	127
- Consumer Customers	27	26	82	76
- Corporate Customers	17	16	57	51
Shares	0	4	0	15
Total	45	46	140	142

The main capital expenditures relate to the capacity and coverage increase of the 3G network, as well as to other network and IT investments.

Financing arrangements and ratings

Valid financing arrangements:

	Maximum	In use on
EUR million	amount	30.9.2011
Committed credit lines	300	70
Commercial paper programme ¹)	250	160
EMTN programme ²)	1,000	375

1) The programme is not committed. 2) European Medium Term Note programme, not committed.

Long-term credit ratings:
Credit rating agency	Rating	Outlook
Moody's Investor Services	Baa2	Stable
Standard & Poor's	BBB	Stable

The Group's cash and undrawn committed credit lines totalled EUR 249 million as of 30 September 2011 (EUR 300 million at the end of 2010)

On 29 July 2011, Elisa signed a EUR 120 million long-term loan agreement with The European Investment Bank and it was drawn on 15 September 2011. On 22 September 2011, Elisa paid back in full a maturing bond of EUR 226 million.

Share

Share trading volumes and closing prices are based on the trades made in NASDAQ OMX Helsinki.

Trading of shares	7-9/2011	7-9/2010	1-9/2011	1-9/2010
Shares traded, millions	34.0	34.6	94.5	106.2
Volume, EUR million	493.8	534.5	1,457.3	1,610.9
% of shares	20.4	20.8	56.8	63.8
Shares and market values	30.9.2011		30.9.2010	31.12.2010
Total number of shares	166,338,400		166,307,586	166,307,586
Treasury shares	10,435,023		10,534,506	10,534,506
Outstanding shares	155,903,377		155,773,080	155,773,080
Closing price, EUR		15.37	16.85	16.27
Market capitalisation, EUR million*		2,396	2,625	2,534
Treasury shares, %		6.27	6.33	6.33
* Excluding treasury shares
Number of shares	Total number	Treasury	Outstanding	Change in
	of shares	shares	shares	equity, €
Shares as 31.12.2010	166,307,586	10,534,506	155,773,080
Share incentive plan 1.3.20111)		-99,483	99,483
Subscription with options 22.3.20112)	16,839		16,839	159,465
Subscription with options 27.6.20113)	13,975		13,975	208,247
Shares as 30.9.2011	166,338,400	10,435,023	155,903,377
1) Stock exchange bulletin 11.2.2011
2) Stock exchange bulletin 22.3.2011 3) Stock exchange bulletin 26.6.2011
Options	2007A	2007B	2007C	Total
Total number of options	850,000	850,000	850,000	2,550,000
Held by Elisa or not distributed	0	268,000	231,000	499,000
Used in share subscription	12,375	18,439	0	30,814
Terminated	837,625	0	0	837,625
Outstanding	0	563,561	619,000	1,182,561
Current subscription price, €	-	8,57	11,67
Subscription period	1.10.2009-	1.10.2010-	1.10.2011-
	31.5.2011	31.5.2012	31.5.2013

From 1 June 2011 to 13 October 2011, a total of 1,350 new Elisa shares have been subscribed with 2007B option rights. These shares will be registered in the trade register on 24 October 2011 and trading of the new shares will begin on 25 October 2011 in NASDAQ OMX Helsinki. The shares are entitled to dividends and have the same shareholder rights as the old shares.

For more information, see Elisa's Annual report 2010 pages 44-45 and Stock exchange release of 18 December 2007.

The Board of Directors' authorisations

The Annual General Meeting accepted the proposal of the Board of Directors to resolve to distribute funds from the unrestricted equity to a maximum amount of EUR 70 million. On 21 October 2011, the Board of Directors decided to distribute approximately EUR 62 million as dividends (see more in "Events after the financial period"). The authorisation is effective until the beginning of the following Annual General Meeting.

The Annual General Meeting decided on the authorisation to repurchase or accept as pledge the company's own shares. The repurchase may be directed. The amount of shares under this authorisation is 5 million shares at maximum. The authorisation is effective until 30 June 2012.

The Annual General Meeting of 2010 approved the proposal of the Board of Directors on the issuance of shares as well as the issuance of special rights entitled to shares. The issue may be directed. The authorisation is effective until 30 June 2014. A maximum aggregate of 15 million of the company's shares can be issued under the authorisation.

Significant legal issues

There were no significant legal or regulatory issues during the third quarter of 2011.

Substantial risks and uncertainties associated with Elisa's operations

Risk management is part of Elisa's internal control system. It aims to ensure that risks affecting the company's business are identified, influenced and monitored. The company classifies risks into strategic, operational, accidental and financial risks.

Strategic and operational risks:

The telecommunications industry is under intense competition in Elisa's main market areas, which may have an impact on Elisa's business. The telecommunications industry is subject to heavy regulation. Elisa and its businesses are monitored and regulated by several public authorities. This regulation also affects the price level of some products and services offered by Elisa.

The rapid developments in telecommunications technology may have a significant impact on Elisa's business.

Elisa's main market is Finland, where the number of mobile phones per inhabitant is among the highest in the world, and growth in subscriptions is thus limited. Furthermore, the volume of phone traffic in Elisa's fixed network has decreased in the past few years. These factors may limit the opportunities for growth.

Accident risks:

The company's core operations are covered by insurance against damage and interruptions caused by accidents. Accident risks also include litigations and claims.

Financial risks:

In order to manage interest rate risk, the Group's loans and investments are diversified in fixedand variable-rate instruments. Interest rate swaps can be used to manage interest rate risk.

As most of Elisa's operations and cash flow are denominated in Euros, the exchange rate risk is minor.

The objective of liquidity risk management is to ensure the Group's financing in all circumstances. Elisa has cash reserves, committed credit facilities and a sustainable cash flow to cover its foreseeable financing needs.

Liquid assets are invested within confirmed limits to investment targets with a good credit rating. Credit risk concentrations in accounts receivable are minor as the customer base is wide.

A detailed description of the financial risk management can be found in note 34 of the Annual Report 2010.

Events after the financial period

On 21 October 2011, Elisa's Board of Directors decided to pay an extraordinary dividend of EUR 0.40 per share. The extraordinary distribution totals approximately EUR 62 million. No dividend will be paid on treasury shares held by Elisa. The ex-date is 24 October 2011, the record date 26 October 2011, and payment will begin on 2 November 2011.

Outlook for 2011

The budget deficits and solvency issues in several European countries have impacted the Finnish economy to some extent. Even though the Finnish economy is among the most stable in Europe, there are still risks inherent to the general economic development. Competition in the Finnish telecommunications market also remains challenging.

Full year revenue is estimated to increase slightly from the previous year. The use of mobile communications, especially mobile broadband services and equipment sales, is continuing to rise. In addition, ICT and new online services' revenue will grow. Full year EBITDA, excluding nonrecurring items, is expected to improve slightly from the last year. Full-year capital expenditure is expected to be maximum 12 per cent of revenue.

In addition to its strong position as a network service provider, Elisa is transforming itself to be able to provide its customers with exciting and relevant new services. Among the factors contributing to long-term growth and profitability improvement is 3G market growth, as well as new online and ICT services. Elisa continues determinedly to employ its efficiency measures. Elisa's financial position and liquidity are good.

BOARD OF DIRECTORS

CONSOLIDATED INCOME STATEMENT

		7-9	7-9	1-9	1-9	1-12
EUR million	Note	2011	2010	2011	2010	2010
Revenue	1	377,7	363,3	1 129,3	1 080,6	1 463,2
Other operating income		0,6	0,8	3,5	2,6	5,1
Materials and services		-156,4	-148,4	-473,3	-436,9	-600,2
Employee expenses		-49,1	-46,2	-164,2	-153,3	-208,3
Other operating expenses		-37,9	-42,2	-121,7	-131,5	-175,1
EBITDA	1	134,9	127,3	373,6	361,5	484,7
Depreciation and amortisation		-52,8	-53,9	-157,6	-162,1	-216,7
EBIT	1	82,1	73,4	216,0	199,4	268,0
Financial income		2,2	5,4	8,6	10,6	9,5
Financial expense		-10,1	-10,7	-31,6	-79,3	-80,4
Share of associated companies' profit		0,0	0,0	0,1	0,0	0,0
Profit before tax		74,2	68,1	193,1	130,7	197,1
Income taxes		-17,8	-17,3	-48,5	-32,0	-46,6
Profit for the period		56,4	50,8	144,6	98,7	150,5
Attributable to: Owners of the parent		56,9	50,7	144,9	98,3	149,7
Non-controlling interests		-0,5	0,1	-0,3	0,4	0,8
		56,4	50,8	144,6	98,7	150,5
Earnings per share (EUR)
Basic		0,36	0,32	0,93	0,63	0,96
Diluted		0,36	0,32	0,93	0,63	0,96
Average number of outstanding shares (1000 shares)
Basic		155 903	155 773	155 867	155 740	155 748
Diluted		156 299	156 149	156 263	156 116	156 129
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit for the period		56,4	50,8	144,6	98,7	150,5
Other comprehensive income, net of tax:
Translation difference		0,0	0,0	0,2	0,2	-0,2
Available-for-sale investments		0,1	1,4	-1,0	0,8	-1,2
Total comprehensive income		56,5	52,2	143,8	99,7	149,1
Total comprehensive income attributable to:
Owners of the parent		57,0	52,1	144,1	99,3	148,3
Non-controlling interest		-0,5	0,1	-0,3	0,4	0,8
		56,5	52,2	143,8	99,7	149,1

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	30.9.	31.12.
EUR million	2011	2010
Non-current assets
Property, plant and equipment	609,8	611,3
Goodwill	797,1	798,0
Other intangible assets	114,5	129,3
Investments in associated companies	0,1	0,1
Available-for-sale investments	32,0	33,2
Receivables	26,5	22,5
Deferred tax assets	11,8	19,6
	1 591,8	1 614,0
Current assets
Inventories	44,7	38,7
Trade and other receivables	290,7	283,1
Tax receivables	2,3	4,1
Cash and cash equivalents	19,4	31,8
	357,1	357,7
Total assets	1 948,9	1 971,7
Equity attributable to owners of the parent	837,3	829,8
Non-controlling interests	3,4	3,1
Total equity	840,7	832,9
Non-current liabilities
Deferred tax liabilities	23,7	26,9
Pension obligations	1,2	1,2
Provisions	3,4	3,6
Financial liabilities	576,1	445,8
Other non-current liabilities	15,1	15,7
	619,5	493,2
Current liabilities
Trade and other payables	246,5	280,6
Tax liabilities	5,1	0,6
Provisions	1,2	2,1
Financial liabilities	235,9	362,3
	488,7	645,6
Total equity and liabilities	1 948,9	1 971,7

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	1-9	1-9	1-12
EUR million	2011	2010	2010
Cash flow from operating activities
Profit before tax	193,1	130,7	197,1
Adjustments
Depreciation and amortisation	157,6	162,1	216,7
Other adjustments	23,3	70,2	71,7
	180,9	232,3	288,4
Change in working capital
Change in trade and other receivables	-8,7	4,3	2,1
Change in inventories	-6,0	-3,1	-6,4
Change in trade and other payables	-20,3	-11,9	11,2
	-35,0	-10,7	6,9
Financial items, net	-29,9	-26,5	-67,9
Taxes paid	-38,2	-47,2	-53,4
Net cash flow from operating activities	270,9	278,6	371,1
Cash flow from investing activities
Capital expenditure	-130,1	-126,2	-181,6
Purchase of shares	-5,2	-8,9	-19,3
Proceeds from asset disposal	6,8	0,5	1,9
Net cash used in investing activities	-128,5	-134,6	-199,0
Cash flow before financing activities	142,4	144,0	172,1
Cash flow from financing activities
Proceeds from long-term borrowings	120,0	75,0	75,0
Repayment of long-term borrowings	-226,2	-80,2	-80,2
Change in short-term borrowings	95,7	-6,1	59,3
Repayment of finance lease liabilities	-3,6	-3,0	-4,1
Dividends paid and capital repayment	-140,7	-143,6	-221,3
Net cash used in financing activities	-154,8	-157,9	-171,3
Change in cash and cash equivalents	-12,4	-13,9	0,8
Cash and cash equivalents at beginning of period	31,8	31,0	31,0
Cash and cash equivalents at end of period	19,4	17,1	31,8

STATEMENT OF CHANGES IN EQUITY

				Reserve for
				invested
				non-		Non
	Share	Treasury	Other	restricted	Retained controlling		Total
EUR million	capital	shares	reserves	equity	earnings	interests	equity
Balance at 1 January 2010	83,0	-202,0	394,7	188,6	434,9	0,8	900,0
Dividends and capital repayment				-143,3		-0,5	-143,8
Share-based compensation		3,0			0,4		3,4
Other changes					-0,2	2,0	1,8
Total comprehensive income			0,8		98,3	0,4	99,5
Balance at 30 September 2010	83,0	-199,0	395,5	45,3	533,4	2,7	860,9

EUR million
Balance at 1 January 2011	83,0	-199,0	393,5	45,3	507,0	3,1	832,9
Dividends					-140,3	-0,7	-141,0
Share-based compensation		2,0		0,3	1,4		3,7
Other changes						1,3	1,3
Total comprehensive income			-1,0		145,1	-0,3	143,8
Balance at 30 September 2011	83,0	-197,0	392,5	45,6	513,2	3,4	840,7

1.1. - 30.9.2011 Unaudited

NOTES

ACCOUNTING PRINCIPLES

The interim report has been prepared in accordance with the IFRS recognition and measurement principles, although all requirements of IAS 34 standard have not been followed. The information has been prepared in accordance with International Financial Reporting Standards (IFRS) effective at the time of preparation and adopted for use by European Union. Apart from the changes in accounting principles stated below, the accounting principles applied in the interim report are the same as in the financial statements at 31 December 2010.

Changes in the accounting principles

The Group adopted the following standards, amendments to standards and interpretations as from 1 January 2011 onward: - Amended IAS 24 Related Party Disclosures. Amendments to definitions and requirements concerning notes.

• Revised IAS 32 Financial instruments: Presentation. The amendments concern the accounting of issues of shares, options or subscription rights denominated in a currency other than the issuer's operating currency. A derivative associated with the party's equity is an equity instrument if it entitles to receive a fixed number of shares in the company for a fixed amount of currency or other financial receivable. Previously, such subscription rights were classified as derivative liabilities in accounting.

• Revised IFRIC 14 IAS 19 - The Limit of a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. After the amendments, advance contributions to a defined benefit plan can, in certain cases, be recognised as assets on the balance sheet.

• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments. A debtor and creditor may renegotiate the terms of a financial liability with the result that the liability is fully or partially extinguished by the debtor issuing equity instruments to the creditor; the debt is swapped for equity. Such equity instruments are "consideration paid," and the difference between the financial liability (or part thereof) and the original valuation price of the granted equity instruments is recognised through profit or loss.

• Annual Improvements of IFRS standards

1. SEGMENT INFORMATION

		Group
		Total
		377,7
		134,9
		-52,8
		82,1
		2,2
		-10,1
		0,0
		74,2
Consumer 233,9 81,2 -30,1 51,1	Customers Customers 143,8 53,7 -22,7 31,0	Corporate Unallocated Items 2,2 -10,1 0,0

Investments	27,4	17,3	44,7

7-9/2010	Consumer Corporate Unallocated
EUR million	Customers Customers		Items	Total
Revenue	224,6	138,7		363,3
EBITDA	77,4	49,9		127,3
Depreciation and amortisation	-31,4	-22,5		-53,9
EBIT	46,0	27,4		73,4
Financial income			5,4	5,4
Financial expense			-10,7	-10,7
Share of associated companies' profit			0,0	0,0
Profit before tax				68,1
Investments	25,7	16,0		41,7

Elisa Corporation

1.1. - 30.9.2011

Unaudited

1-9/2011	Consumer	Corporate Unallocated		Group
EUR million	Customers Customers		Items	Total
Revenue	685,3	444,0		1 129,3
EBITDA	220,6	153,0		373,6
Depreciation and amortisation	-89,3	-68,3		-157,6
EBIT	131,3	84,7		216,0
Financial income			8,6	8,6
Financial expense			-31,6	-31,6
Share of associated companies' profit			0,1	0,1
Profit before tax				193,1
Investments	82,4	57,4		139,8
1-9/2010	Consumer	Corporate Unallocated		Group
EUR million	Customers Customers		Items	Total
Revenue	656,1	424,5		1 080,6
EBITDA	218,6	142,9		361,5
Depreciation and amortisation	-93,5	-68,6		-162,1
EBIT	125,1	74,3		199,4
Financial income			10,6	10,6
Financial expense			-79,3	-79,3
Share of associated companies' profit			0,0	0,0
Profit before tax				130,7
Investments	76,4	50,9		127,3
1-12/2010	Consumer	Corporate Unallocated		Group
EUR million	Customers Customers		Items	Total
Revenue	885,0	578,2		1 463,2
EBITDA	289,6	195,1		484,7
Depreciation and amortisation	-125,0	-91,7		-216,7
EBIT	164,6	103,4		268,0
Financial income			9,5	9,5
Financial expense			-80,4	-80,4
Share of associated companies' profit			0,0	0,0
Profit before tax				197,1
Total assets	107,7	76,1		183,8
Investments	1 062,0	801,0	108,7	1 971,7

2. OPERATING LEASE COMMITMENTS

	30.9.	31.12.
EUR million	2011	2010
Due within 1 year	41,8	20,5
Due after 1 year but within 5 years	33,7	31,8
Due after 5 years	8,5	9,4
Total	84,0	61,7

3. CONTINGENT LIABILITIES

	30.9.	31.12.
EUR million	2011	2010
Mortgages
For own	2,0	2,0
Pledges given
Pledges given as surety	0,9	0,9
Guarantees given
For own	0,8	0,8
For others	0,5	0,5
Mortgages, pledges and guarantees total	4,2	4,2

4. DERIVATIVE INSTRUMENTS

	30.9.	31.12.
EUR million	2011	2010
Interest rate swaps
Nominal value	150,0	150,0
Fair value	0,9	1,2

KEY FIGURES

	1-9	1-9	1-12
EUR million	2011	2010	2010
Shareholders' equity per share, EUR	5,37	5,51	5,33
Interest bearing net debt	792,5	724,8	776,2
Gearing	94,3 %	84,2 %	93,2 %
Equity ratio	43,4 %	44,8 %	42,5 %
Return on investment (ROI) *)	18,0 %	13,5 %	14,0 %
Gross investments in fixed assets	139,8	127,3	183,8
of which finance lease investments	9,6	1,1	2,2
Gross investments as % of revenue	12,4 %	11,8 %	12,6 %
Investments in shares	0,0	14,5	34,5
Average number of employees	3 749	3 421	3 477

*) rolling 12 months profit preceding the reporting date

Formulae for financial indicators

EBITDA	EBIT + depreciation, amortisation and impairment
EBIT	Profit for the period + income taxes + financial income and expense + share of associated companies' profit
Gearing %	Interest-bearing liabilities - cash and cash equivalents ---------------------------------------------------------- x 100
	Total equity
Equity ratio %	Total equity
	--------------------------------------------- x 100 Balance sheet total - advances received
	Profit before taxes + interest and other financial expenses -------------------------------------------------------------------------- x 100
Return on investment % (ROI)	Total equity + interest bearing liabilities (average)
Net debt	Interest-bearing liabilities - cash and cash equivalents
	Equity attributable to equity holders of the parent
Shareholders' equity per share	---------------------------------------------------------------- Number of shares outstanding at end of period
	Profit for the period attributable to equity holders of parent
Earnings/share	----------------------------------------------------------------------------- Average number of outstanding shares