Elisa Oyj — Earnings Release 2021

Jul 16, 2021

Elisa’s Half-Year Financial Report January–June 2021

Elisa’s Half-Year Financial Report January–June 2021

ELISA CORPORATION HALF-YEAR FINANCIAL REPORT RELEASE 16 JULY 2021 AT 8:30 AM

Second quarter 2021 financial highlights

· Revenue increased by EUR 24m to EUR 484m, mainly due to the camLine
acquisition, Elisa Viihde Viaplay cooperation and growth in mobile revenue.
· Mobile service revenue increased by 4.2 per cent to EUR 213m.
· Comparable EBITDA grew by EUR 4m to EUR 172m.
· Comparable EBIT increased by EUR 4m to EUR 105m.
· Comparable cash flow increased by EUR 16m to EUR 101m, mainly due to a
positive change in net working capital.
· In Finland mobile post-paid ARPU increased to EUR 19.9 (19.5 in the previous
quarter), and mobile post-paid churn was at the previous quarters level,
18.3 per cent (18.3).
· During the quarter, the number of post-paid mobile subscriptions increased
by 36,700, of which 30,800 were M2M and IoT subscription.
· Prepaid subscriptions increased by 6,000 during the quarter.
· The number of fixed broadband subscriptions decreased by 5,100 during the
quarter.
· The guidance for 2021 is unchanged.

Key indicators

[][][][][]
EUR million 2Q21 2Q20 Δ % 1H/21 1H/20 Δ %
Revenue 484 461 5.1% 966 929 4.0%
EBITDA 166 168 -1.2% 336 334 0.6%
Comparable 172 168 2.2% 342 334 2.3%
EBITDA [1)]
EBIT 100 101 -1.3% 202 200 0.9%
Comparable EBIT 105 101 4.4% 207 200 3.8%
[1)]
Profit before 96 97 -0.1% 196 192 2.2%
tax
Comparable 102 97 5.9% 202 192 5.2%
profit before
tax [1)]
EPS, EUR 0.49 0.49 0.1% 1.00 0.98 2.4%
Comparable EPS, 0.52 0.49 5.9% 1.03 0.98 5.3%
EUR
Capital 67 75 -10.3% 120 126 -4.5%
expenditure
Net debt 1,379 1,332 3.5% 1,379 1,332 3.5%
Net debt / 2.0 2.0 2.0 2.0
EBITDA [2)]
Gearing ratio, % 133.8% 132.6% 133.8% 132.6%
Equity ratio, % 35.8% 35.9% 35.8% 35.9%
Cash flow  101 83 21.0% 151 156 -3.2%
Comparable cash 101 85 18.2% 161 158 1.6%
flow [3)]

[1)][ ]Excluding EUR 6m in restructuring costs. [2)] (Interest-bearing debt –
financial assets) / (four previous quarters’ comparable EBITDA). [3)] 1H/21
excluding EUR 10m in share investments, 2Q20 excluding EUR 2m and 1H/20
excluding EUR 3m in share investments.

Additional key performance Indicators are available at elisa.com/investors
(Elisa Operational Data.xlsx).

CEO Veli-Matti Mattila: A solid quarter in an unchanged environment

Elisa continued its solid development. Revenue increased by 5 per cent from the
previous year, to EUR 484 million. Comparable EBITDA improved by 2 per cent, to
EUR 172 million, and comparable earnings per share by 6 per cent, to EUR 0.52.

Elisa's continued its leadership in 5G, with the most extensive network in
Finland. Elisa offers 5G in over 110 towns and cities, with nationwide
population coverage of over 50 per cent, and up to 90 per cent in the largest
cities. Customer demand for 5G continued to be good, with an increase of more
than EUR 3 in monthly billing for new 5G customers. The majority of mobile
phones sold are now 5G devices.

Elisa was the first mobile operator in the Nordics to pilot a standalone 5G
network in a commercial network. Elisa has delivered private 5G networks for
e.g. the ports of Pori and HaminaKotka. Companies utilising private networks can
benefit from more advanced applications for the needs of industry and logistics,
among other things.

According to a recent study by Elisa, viewing of streaming video has increased
steadily over the past three years, and it has increased by over 40 per cent
during the COVID-19 pandemic. Demand from corporate customers for cloud-based IT
services has continued to grow. Both trends have contributed positively to
revenue from entertaining video and IT services.

We continued to implement our mission: a sustainable future through
digitalisation. Elisa is in line to be one of the first Finnish companies to
reduce its emissions to meet the target for limiting global warming to 1.5 °C by
2025. Elisa was one of the first 100 organisations to sign the global Climate
Pledge and is in the top ten of the Financial Times list of Europe's Climate
Leaders 2021. Elisa also joined the Inklusiiv initiative to drive diversity and
inclusion, which are becoming increasingly important as already 23 per cent of
Elisa personnel work in over 16 countries outside Finland.

We will continue to focus strongly on continuous improvement of the customer
experience and quality. Increasing productivity, expanding our digital services
internationally and creating value with data, as well as our strong investment
capability, continue to lay a solid foundation for competitively creating value
in the future.

Outlook and guidance for 2021

The outlook of macroeconomic environment has improved in Finland, although there
are still some uncertainties. Competition in the Finnish telecommunications
market remains keen.

Full-year revenue is estimated to be slightly higher than in 2020. Mobile data
and digital services are expected to increase revenue. Full-year comparable
EBITDA is anticipated to be at the same level or slightly higher than in 2020.
Capital expenditure is expected to be a maximum of 12 per cent of revenue.

Elisa is continuing its productivity improvement development, for example by
increasing automation and data analytics in different processes, such as
customer interactions, network operations and delivery. Additionally, Elisa’s
continuous quality improvement measures will increase customer satisfaction and
efficiency, and reduce costs.

Elisa's transformation into a provider of exciting, new and relevant services
for its customers is continuing. Long-term revenue growth and profitability
improvement will derive from growth in the mobile data market, as well as
digital online and ICT services.

Disclosure procedure

Elisa is adopting the disclosure procedure enabled by the Standard 5.2b
published by the Finnish Financial Supervision Authority. This is a summary of
Elisa’s Half-Year Financial Report January–June 2021 and the complete report is
attached as a pdf-file to this release and is also available on our website at
elisa.com/investors (https://www.globenewswire.com/Tracker?data=D9vbBKhhipcyQGVid
s6Z8PhlxrW03tIlhqjtl7IizXDg2cwhvJ9xRo9Jln4ko3aqUndW8lbdkB7x6Du555dMuIalqZ3gC_x36q
9tmjPk3UM=).

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 50 520 5555

Distribution:

Nasdaq Helsinki
Principal media
elisa.com (http://www.elisa.com)

Attachments: