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Elisa Oyj
Interim / Quarterly Report • Jul 15, 2022
3216_ir_2022-07-15_d859830b-446a-45e6-b8b2-95948f49b035.pdf
Interim / Quarterly Report
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Half-Year Report 2022
15 July 2022
ELISA'S HALF-YEAR REPORT JANUARY–JUNE 2022
Second quarter 2022 financial highlights
- Revenue increased by EUR 37m to EUR 522m, mainly due to growth in mobile and digital services as well as equipment sales.
- Mobile service revenue increased by 7.2 per cent to EUR 228m.
- Comparable EBITDA grew by EUR 7m to EUR 179m.
- Comparable EBIT increased by EUR 8m to EUR 113m.
- Comparable cash flow decreased by EUR 20m to EUR 81m, mainly due to a negative change in net working capital.
- In Finland, mobile post-paid ARPU increased to EUR 21.0 (20.8 in the previous quarter), and mobile post-paid churn decreased to 15.3 per cent (17.2).
- During the quarter, the number of post-paid mobile subscriptions increased by 52,300, of which 26,800 were M2M and IoT subscriptions.
- Prepaid subscriptions increased by 15,900 during the quarter.
- The number of fixed broadband subscriptions decreased by 6,600 during the quarter.
- The guidance for 2022 is unchanged.
Key indicators
| EUR million | 2Q22 | 2Q21 | Δ % | 1H/22 | 1H/21 | Δ % |
|---|---|---|---|---|---|---|
| Revenue | 522 | 484 | 7.7 % | 1,033 | 966 | 6.9 % |
| EBITDA | 177 | 166 | 6.7 % | 354 | 336 | 5.5 % |
| Comparable EBITDA (1 | 179 | 172 | 4.3 % | 356 | 342 | 4.3 % |
| EBIT | 111 | 100 | 12.0 % | 223 | 202 | 10.5 % |
| Comparable EBIT (1 | 113 | 105 | 7.7 % | 225 | 207 | 8.4 % |
| Profit before tax | 108 | 96 | 12.3 % | 217 | 196 | 10.7 % |
| Comparable profit before tax (1 | 110 | 102 | 7.9 % | 219 | 202 | 8.5 % |
| EPS, EUR | 0.55 | 0.49 | 12.0 % | 1.10 | 1.00 | 10.0 % |
| Comparable EPS, EUR | 0.56 | 0.52 | 7.7 % | 1.11 | 1.03 | 7.9 % |
| Capital expenditure | 67 | 67 | -0.6 % | 125 | 120 | 4.6 % |
| Net debt | 1,431 | 1,379 | 3.8 % | 1,431 | 1,379 | 3.8 % |
| Net debt / EBITDA (2 | 2.0 | 2.0 | 2.0 | 2.0 | ||
| Gearing ratio, % | 135.4 % | 133.8 % | 135.4 % | 133.8 % | ||
| Equity ratio, % | 35.3 % | 35.8 % | 35.3 % | 35.8 % | ||
| Cash flow (3 | 82 | 101 | -18.9 % | 135 | 151 | -10.5 % |
| Comparable cash flow (4 | 81 | 101 | -19.5 % | 147 | 161 | -8.4 % |
1) 2022 excluding EUR 2m and 2021 excluding EUR 6m in restructuring costs. 2) (Interest-bearing debt – financial assets) / (four previous quarters' comparable EBITDA). 3) Cash flow before financing activities. 4) 1H/22 excluding EUR 12m in share investments and 1H/21 excluding EUR 10m in share investments.
Additional key performance indicators are available at elisa.com/investors (Elisa Operational Data.xlsx).
CEO's review:
Growth continued in all business areas
Elisa continued its solid development. Revenue increased by 8 per cent from the previous year to EUR 522 million. Comparable EBITDA improved by 4 per cent to EUR 179 million and comparable earnings per share by 8 per cent to EUR 0.56. Despite geopolitical challenges and increasing uncertainties, all of our businesses have had solid performance.
Our 5G expansion has now reached over 80 per cent of the Finnish population in over 180 municipalities. Together with Nokia and Qualcomm, we achieved another record, setting the fastest 5G uplink speed of 2.1 Gbps in a live demonstration in Finland, enabling ultra-high-performance, low-latency services. In Estonia, we succeeded in the 3.5 GHz band 5G spectrum auction and won the 130 MHz of spectrum that we were targeting. Elisa was first to launch 5G services with the 3.5 GHz frequency.
The international digital services business continued on its path of growth. In July, Elisa signed an agreement to acquire Cardinality Ltd, a UK-based global supplier of cloud-native data management, service assurance and customer experience analytics. Cardinality's award-winning platform complements Elisa Polystar solutions, providing a full, network-wide automation solution with cost benefits.
We are focusing on sustainable business in accordance with our mission: a sustainable future through digitalisation. Elisa was noted on the Financial Times ranking of Europe's Climate Leaders for the second consecutive year. We continued our support for Ukrainian people in need with monetary donations and by e.g. providing prepaid subscriptions in Finland and Estonia. We have been an official partner of Helsinki Pride for years together with other telecom operators to promote diversity and inclusion.
We will continue to focus strongly on continuous improvement of the customer experience and quality. Increasing productivity, innovating and expanding our digital services internationally, creating value with data, and our strong investment capability continue to lay a solid foundation for competitively creating value in the future.
Veli-Matti Mattila CEO
HALF-YEAR REPORT JANUARY–JUNE 2022
This interim report has been prepared in accordance with the IAS 34 standard. The information presented in this interim report is unaudited.
Market situation
The competitive environment has been active, especially in 4G subscriptions. The COVID-19 pandemic has continued to impact the market situation to some extent. The amount of travel to countries outside the EU has remained low. On the other hand, the usage of mobile services has continued to evolve favourably. Brisk demand for 5G services has also continued due to the wider range of 5G devices and better network coverage. Also, the current geopolitical situation has increased the demand for cybersecurity services. Competition in the fixed broadband market has continued to be intense in multidwelling units, and the number and usage of traditional fixed network subscriptions is decreasing.
The markets for IT services have continued to develop favourably. The IPTV entertainment services market is growing, while competition in streaming services is keen. Demand for other digital services is also growing well.
| EUR million | 2Q22 | 2Q21 | Δ % | 1H/22 | 1H/21 | Δ % |
|---|---|---|---|---|---|---|
| Revenue | 522 | 484 | 7.7 % | 1,033 | 966 | 6.9 % |
| EBITDA | 177 | 166 | 6.7 % | 354 | 336 | 5.5 % |
| EBITDA-% | 34.0 % | 34.3 % | 34.3 % | 34.8 % | ||
| Comparable EBITDA (1 | 179 | 172 | 4.3 % | 356 | 342 | 4.3 % |
| Comparable EBITDA-% | 34.4 % | 35.5 % | 34.5 % | 35.4 % | ||
| EBIT | 111 | 100 | 12.0 % | 223 | 202 | 10.5 % |
| EBIT-% | 21.4 % | 20.6 % | 21.6 % | 20.9 % | ||
| Comparable EBIT (1 | 113 | 105 | 7.7 % | 225 | 207 | 8.4 % |
| Comparable EBIT-% | 21.8 % | 21.8 % | 21.8 % | 21.5 % | ||
| Return on equity, % | 30.7 % | 29.1 % | 30.7 % | 29.1 % |
Revenue, earnings and financial position
1) 2022 excluding EUR 2m and 2021 excluding EUR 6m in restructuring costs
Second quarter 2022
Revenue increased by 8 per cent, mostly due to growth in mobile, fixed and digital services as well as equipment sales. Decreased usage and subscriptions of traditional fixed (PSTN) telecom services and a decrease in interconnection revenue affected revenue negatively. EBITDA includes EUR 2 million in oneoff restructuring costs relating to personnel reductions. Comparable EBITDA increased by 4 per cent. Efficiency improvements and revenue growth impacted EBITDA positively. Comparable EBIT grew by 8 per cent.
Net financial income and expenses were EUR -3 million (-3). Income taxes in the income statement amounted to EUR -20 million (-17). Net profit was EUR 88 million (79), and earnings per share were EUR 0.55 (0.49). Comparable earnings per share were EUR 0.56 (0.52).
January–June 2022
Revenue increased by 7 per cent on the previous year, mainly due to growth in mobile, fixed and digital services, as well as equipment sales. Decreases in usage and subscriptions of traditional fixed telecom services and in interconnection revenue affected revenue negatively.
EBITDA includes EUR 2 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 4 per cent and comparable EBIT by 8 per cent, mainly due to revenue growth and efficiency improvement measures.
Net financial income and expenses decreased to EUR -5 million (-6). Income taxes in the income statement were EUR -40 million (-35). Net profit was EUR 176 million (161), and earnings per share were EUR 1.10 (1.00). Comparable earnings per share were EUR 1.11 (1.03).
Financial position
| EUR million | 2Q22 | 2Q21 | Δ % | 1H/22 | 1H/21 | Δ % |
|---|---|---|---|---|---|---|
| Net debt | 1,431 | 1,379 | 3.8 % | 1,431 | 1,379 | 3.8 % |
| Net debt / EBITDA(1 | 2.0 | 2.0 | 2.0 | 2.0 | ||
| Gearing ratio, % | 135.4 % | 133.8 % | 135.4 % | 133.8 % | ||
| Equity ratio, % | 35.3 % | 35.8 % | 35.3 % | 35.8 % | ||
| Cash flow (2 | 82 | 101 | -18.9 % | 135 | 151 | -10.5 % |
| Comparable cash flow (3 | 81 | 101 | -19.5 % | 147 | 161 | -8.4 % |
1) (Interest-bearing debt – financial assets) / (four previous quarters' comparable EBITDA). 2) Cash flow before financing activities. 3) 1H22 excluding EUR 12m in share investments and 1H21 excluding EUR 10m in share investments.
Second quarter 2022
Net debt increased by 4 per cent to EUR 1,431 million. Comparable cash flow after investments decreased by 20 per cent to EUR 81 million. Cash flow was negatively affected by a change in net working capital and the fee paid for the Estonian 5G licence, and it was positively affected by increased EBITDA and lower capital expenditure.
The financial position and liquidity are strong. Cash and undrawn committed credit lines totalled EUR 387 million at the end of the quarter.
January–June 2022
Comparable cash flow after investments decreased by 8 per cent to EUR 147 million. The negative change in net working capital and the fee paid for the Estonian 5G licence affected cash flow negatively, while higher EBITDA, lower capital expenditure and lower interest paid had positive effects.
Changes in corporate structure
There were no significant changes in the corporate structure during the second quarter.
Consumer Customers business
| EUR million | 2Q22 | 2Q21 (1 | Δ % | 1H/22 | 1H/21 (1 | Δ % |
|---|---|---|---|---|---|---|
| Revenue | 319 | 302 | 5.6 % | 631 | 601 | 5.0 % |
| EBITDA | 121 | 116 | 4.3 % | 242 | 234 | 3.6 % |
| EBITDA-% | 37.9 % | 38.4 % | 38.3 % | 38.9 % | ||
| Comparable EBITDA (2 | 122 | 118 | 3.6 % | 244 | 236 | 3.2 % |
| Comparable EBITDA-% | 38.4 % | 39.1 % | 38.6 % | 39.3 % | ||
| EBIT | 77 | 72 | 7.2 % | 155 | 146 | 5.9 % |
| EBIT-% | 24.3 % | 23.9 % | 24.5 % | 24.3 % | ||
| 79 | 74 | 6.1 % | 157 | 149 | 5.4 % | |
| Comparable EBIT-% | 24.8 % | 24.7 % | 24.8 % | 24.7 % | ||
| CAPEX | 45 | 42 | 6.1 % | 83 | 74 | 11.5 % |
| Comparable EBIT (2 |
1) Allocation rules between segments have been specified in 2022 and the comparable figures have been updated. 2) 2022 excluding EUR 1.6m and 2021 excluding EUR 2.3m in restructuring costs.
Second quarter 2022
Revenue increased by 6 per cent. Revenue was positively affected by growth in mobile and digital services as well as in equipment sales. Decreases in interconnection revenue and in usage and subscriptions of traditional fixed telecom services affected revenue negatively. EBITDA includes EUR 1.6 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 4 per cent, mainly due to revenue growth and efficiency improvements.
January–June 2022
Revenue increased by 5 per cent. Mobile and digital services as well as equipment sales affected revenue positively, while it was negatively affected by interconnection revenue and the decrease in traditional fixed telecom services. EBITDA includes EUR 1.6 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 3 per cent, mainly due to revenue growth and efficiency improvement measures.
Corporate Customers business
| EUR million | 2Q22 | 2Q21 (1 | Δ % | 1H/22 | 1H/21 (1 | Δ % |
|---|---|---|---|---|---|---|
| Revenue | 203 | 183 | 11.1 % | 402 | 365 | 10.1 % |
| EBITDA | 57 | 50 | 12.4 % | 112 | 102 | 10.1 % |
| EBITDA-% | 27.9 % | 27.6 % | 28.0 % | 28.0 % | ||
| Comparable EBITDA (2 | 57 | 54 | 5.7 % | 113 | 106 | 6.8 % |
| Comparable EBITDA-% | 28.1 % | 29.5 % | 28.1 % | 29.0 % | ||
| EBIT | 34 | 27 | 24.8 % | 68 | 55 | 22.9 % |
| EBIT-% | 16.8 % | 15.0 % | 16.9 % | 15.1 % | ||
| Comparable EBIT (2 | 34 | 31 | 11.7 % | 68 | 59 | 16.2 % |
| Comparable EBIT-% | 17.0 % | 16.9 % | 17.0 % | 16.1 % | ||
| CAPEX | 22 | 25 | -11.7 % | 43 | 46 | -6.7 % |
1) Allocation rules between segments have been specified in 2022 and the comparable figures have been updated. 2) 2022 excluding EUR 0.4m and 2021 excluding EUR 3.5m in restructuring costs.
Second quarter 2022
Revenue grew by 11 per cent. Revenue was positively affected by growth in mobile, fixed and digital services and equipment sales, as well as the TenForce and Frinx acquisitions. Decreases in traditional
fixed services and interconnection revenue affected revenue negatively. EBITDA includes EUR 0.4 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 6 per cent, mainly due to revenue growth and efficiency improvements.
January–June 2022
Revenue increased by 10 per cent. Revenue was positively affected by growth inmobile, fixed and digital services and equipment sales, as well as the TenForce and Frinx acquisitions, whereas the decrease in traditional fixed services and interconnection revenue had a negative effect. EBITDA includes EUR 0.4 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 7 per cent.
Investments
| EUR million | 2Q22 | 2Q21 | 1H/22 | 1H/21 |
|---|---|---|---|---|
| Capital expenditure (1, of which | 67 | 67 | 125 | 120 |
| Consumer Customers | 45 | 42 | 83 | 74 |
| Corporate Customers | 22 | 25 | 43 | 46 |
| Shares and business acquisitions | 0 | 0 | 14 | 10 |
| Total investments | 67 | 67 | 140 | 130 |
| Licences | 7 | 7 | ||
| Leases | 6 | 3 | 15 | 8 |
| Capital expenditure excluding leases, licences | ||||
| and business acquisitions | 53 | 64 | 104 | 112 |
| Capital expenditure as % of revenue | 10 | 13 | 10 | 12 |
1) 2Q22 and 1H22 include EUR 7m for the 3.5 GHz frequency licence investment in Estonia.
The main capital expenditures related to the capacity and coverage increases in the 5G and 4G networks, as well as to other network and IT investments.
Personnel
In January–June, the average number of personnel at Elisa was 5,410 (5,396) and employee expenses totalled EUR 198 million (193). In the second quarter, employee expenses were EUR 98 million (99). Personnel by segment at the end of the period:
| 30 June 22 | 30 June 21 | 31 Dec 21 | |
|---|---|---|---|
| Consumer Customers | 2,948 | 2,961 | 2,845 |
| Corporate Customers | 2,624 | 2,517 | 2,526 |
| Total | 5,572 | 5,478 | 5,371 |
The TenForce and Frinx acquisitions increased the number of personnel by 100.
Sustainability
| Key ESG indicators | 2Q22 | 2Q21 | 4Q21 |
|---|---|---|---|
| Mobile network energy efficiency in Finland | |||
| Change in energy consumption per GB from Q4 2021 level | -8,8 % | - | - |
| Population coverage of >100 Mbps connections in Finland | 80,8 % | 55,0 % | 72,6 % |
| Proportion of female supervisors | 29,6 % | 28,5 % | 27,4 % |
| Patent portfolio development | |||
| Size of active patent portfolio 1) | 312 | 221 | 265 |
| Number of first applications | 14 | 11 | 19 |
1) Number of active patent applications and patents.
All key figures are published in our certified annual sustainability report: elisa.com/corporate/investors/annual-report. More key figures: elisa.com/corporate/investors/financial-key-figures/sustainability-key-figures/.
Financing arrangements and ratings
| Maximum | In use on | |
|---|---|---|
| EUR million | amount | 30 Jun 2022 |
| Committed credit limits | 300 | 0 |
| Credit facilities | 100 | 100 |
| Commercial paper programme (not commited) | 350 | 180 |
| EMTN programme (not commited) | 1,500 | 900 |
| Long-term credit ratings | Rating | Outlook |
| Credit rating agency | ||
| Moody's Investor Services | Baa2 | Stable |
| S&P Global Ratings | BBB+ | Stable |
Share
Share trading volumes are based on trades made on the Nasdaq Helsinki and alternative marketplaces. Closing prices are based on the Nasdaq Helsinki.
| Trading of shares | 2Q22 | 2Q21 | 2021 |
|---|---|---|---|
| Nasdaq Helsinki, millions | 19.8 | 24.1 | 81.6 |
| Other marketplaces, millions1) | 58.7 | 50.4 | 167.3 |
| Total volume, millions | 78.5 | 74.5 | 248.9 |
| Value, EUR million | 3,652.1 | 3,652.1 | 12,698.1 |
| % of shares | 46.9 % | 44.5 % | 148.7 % |
| Shares and market values | 30 Jun 2022 | 30 Jun 2021 | 2021 |
| Total number of shares | 167,335,073 | 167,335,073 | 167,335,073 |
| Treasury shares | 7,075,378 | 7,147,772 | 7,147,772 |
| Outstanding shares | 160,259,695 | 160,187,301 | 160,187,301 |
| Closing price, EUR | 53.62 | 50.32 | 54.12 |
| Market capitalisation, EUR million | 8,973 | 8,420 | 9,056 |
| Treasury shares, % | 4.23 % | 4.27 % | 4.27 % |
| Number of shares | Total | Treasury | Outstanding |
| Shares on 31 Dec 2021 | 167,335,073 | 7,147,772 | 160,187,301 |
| Performance share plan, 1 Feb 20222) | -72,394 | 72,394 | |
| Shares on 30 June 2022 | 167,335,073 | 7,075,378 | 160,259,695 |
1) Other marketplaces: Based on Bloomberg. 2) Stock exchange bulletin, 1 February 2022.
On 1 February 2022, Elisa transferred 72,394 treasury shares to people involved in the performance share plan for the period 2019–2021.
Significant legal and regulatory issues
The European Union "Roam like at home" (RLAH) regulation has been extended until 2032.
The Estonian auction for the 3.5 GHz spectrum for Elisa ended on 27 May 2022. Elisa achieved its target, winning 130 MHz of spectrum. The new spectrum is being used to build Elisa's 5G network.
In July 2020, Tucana Telecom NV initiated legal proceedings against Polystar OSIX AB in the Business Court of Brussels with a claim of infringement of exclusivity included in a distribution agreement and also of wrongful termination of the distribution agreement. This case has been resolved pursuant to a judgement issued on 10 June 2022. The claim against Polystar OSIX AB was dismissed in full by the court and no compensation or damages were consequently awarded to the claimant. Unless an appeal is submitted by the claimant, the case will be finally resolved.
Elisa has returned the 2,100 MHz frequency licence in the province of Ahvenanmaa, and its validity expired on 1 June 2022.
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, hazard and financial risks.
Strategic and operational risks:
The telecommunications industry is intensely competitive 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 and may also require investments that have long payback times.
Elisa processes different kinds of data, including personal and traffic data. Therefore, the applicable data protection legislation, especially the General Data Protection Regulation, has a significant impact on Elisa and its businesses.
The rapid developments in telecommunications technology may have a significant impact on Elisa's business.
Changes in governmental relationships, including in the security environment, may increase the risk of restrictions being imposed on equipment from particular network providers that is also used in Elisa's network. This could have financial or operational impacts 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 therefore limited. Furthermore, the volume of phone traffic on the fixed network has been decreasing during recent years. These factors may limit opportunities for growth. New international business expansion and possible future acquisitions abroad may increase risks.
Elisa is liable to pay direct and indirect taxes and withholding taxes in the countries in which it operates. The tax authorities have taken a slightly more intense approach to tax inspection of late. Tax payments may be challenged by local tax authorities, and this may have a negative financial impact on Elisa.
There is an increasing level of uncertainty relating to Russia's war in Ukraine. This is expected to affect the general economic environment, e.g. inflation and energy prices. Challenges in global supply chains may also result in uncertainties in volumes and prices. Disturbances related to running infrastructure may also occur, for example due to cyber incidents. Elisa's business in Russia was not essential, and Elisa has withdrawn from the Russian market.
Hazard risks:
The company's core operations are covered by insurance against damage and interruptions caused by accidents and disasters. Accident risks also include litigation and claims.
The direct and indirect effects of the coronavirus (COVID-19) pandemic are uncertain. If the pandemic continues for a prolonged period, this may significantly contribute to a slowdown in economic growth, which may have negative effects on Elisa through customer demand, suppliers' security of supply and employee health. Elisa has adapted its operations and taken many proactive measures due to the COVID-19 pandemic, e.g. more intensive follow-up of customer demand for existing services, as well as emerging demand for new business opportunities. Also, the company has moved to hybrid working in the duties where that is possible.
Financial risks:
In order to manage the interest rate risk, the Group's loans and investments are diversified into fixedand variable-rate instruments. Interest rate swaps can be used to manage the interest rate risk.
As most of Elisa's operations and cash flow are denominated in euros, the exchange rate risk is minor. Currency derivatives can be used to manage the currency risk.
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 in financially solid banks, domestic companies and institutions. Credit risk concentrations in accounts receivable are minor, as the customer base is broad.
COVID-19, Russia's war in Ukraine and higher inflation have increased volatility in the financial markets. This might have an effect on Elisa's ability to raise funds and increase financing costs.
A detailed description of financial risk management can be found in Note 7.1 to the Annual Report 2021.
COVID-19 situation and impacts
The impact of COVID-19 on Elisa's business has been limited. Operations have continued as planned, and all supply chains have operated normally. Elisa has changed its way of working to a hybrid model. The financial effects have been seen mainly in lower roaming revenue due to the reduced amount of travel to countries outside the EU. Elisa's financial position and cash flow remain strong. Elisa has prepared for various scenarios to secure its financial position.
Events after the reporting period
In July, Elisa signed an agreement to acquire Cardinality Ltd, a UK-based global supplier of cloud-native data management, service assurance and customer experience analytics. The closing of the deal is expected during the third quarter of 2022.
Outlook and guidance for 2022
Growth in the Finnish economy is expected to continue; however, the outlook for GDP growth has deteriorated from the beginning of the year. There are increasing levels of uncertainty relating to Russia's war in Ukraine, such as inflation and energy prices. Challenges in global supply chains may also result in uncertainties in volumes and prices. Competition in the Finnish telecommunications market remains keen.
Full-year revenue is estimated to be at the same level as or slightly higher than in 2021. 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 2021. 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 domestic and international digital services.
BOARD OF DIRECTORS
Unaudited
Consolidated income statement
| 4-6 | 4-6 | 1-6 | 1-6 | 1-12 | ||
|---|---|---|---|---|---|---|
| EUR million | Note | 2022 | 2021 | 2022 | 2021 | 2021 |
| Revenue | 1 | 521,5 | 484,3 | 1 032,9 | 965,9 | 1 997,9 |
| Other operating income | 1,1 | 3,0 | 2,0 | 5,6 | 9,0 | |
| Materials and services Employee expenses Other operating expenses EBITDA |
1 | -199,0 -97,6 -48,6 177,4 |
-181,0 -98,7 -41,4 166,2 |
-388,6 -197,7 -94,2 354,5 |
-363,0 -193,0 -79,6 335,9 |
-763,6 -373,8 -172,2 697,4 |
| Depreciation, amortisation and impairment EBIT |
1 1 |
-65,9 111,5 |
-66,6 99,5 |
-131,7 222,8 |
-134,3 201,6 |
-266,6 430,8 |
| Financial income Financial expenses Share of associated companies' profit Profit before tax |
1,9 -4,7 -0,3 108,4 |
1,0 -3,8 -0,2 96,5 |
3,4 -8,8 -0,7 216,7 |
2,3 -8,0 -0,2 195,7 |
4,6 -16,5 -0,5 418,4 |
|
| Income taxes Profit for the period |
-20,0 88,4 |
-17,3 79,2 |
-40,4 176,4 |
-34,9 160,8 |
-74,9 343,5 |
|
| Attributable to Equity holders of the parent Non-controlling interests |
88,8 -0,5 |
79,3 -0,1 |
177,0 -0,7 |
160,8 0,0 |
343,6 -0,2 |
|
| 88,4 | 79,2 | 176,4 | 160,8 | 343,5 | ||
| Earnings per share (EUR) Basic Diluted |
0,55 0,55 |
0,49 0,49 |
1,10 1,10 |
1,00 1,00 |
2,15 2,15 |
|
| Average number of outstanding shares ('000) Basic Diluted |
160 260 160 280 |
160 179 160 179 |
160 247 160 329 |
160 161 160 161 |
160 174 160 174 |
Consolidated statement of comprehensive income
| Profit for the period Other comprehensive income, net of tax |
88,4 | 79,2 | 176,4 | 160,8 | 343,5 |
|---|---|---|---|---|---|
| Items, which may be reclassified subsequently | |||||
| to profit or loss | |||||
| Cash flow hedge | 3,9 | 0,1 | 4,0 | -0,1 | 0,9 |
| Translation differences | -1,1 | 0,7 | -1,5 | -0,8 | -1,2 |
| 2,8 | 0,8 | 2,6 | -1,0 | -0,3 | |
| Items that are not reclassified subsequently to | |||||
| profit or loss | |||||
| Remeasurements of the net defined benefit liability | -2,8 | ||||
| Total comprehensive income | 91,1 | 80,0 | 178,9 | 159,9 | 340,4 |
| Total comprehensive income attributable to | |||||
| Equity holders of the parent | 91,5 | 80,1 | 179,5 | 159,8 | 340,5 |
| Non-controlling interest | -0,4 | -0,1 | -0,6 | 0,0 | -0,1 |
| 91,1 | 80,0 | 178,9 | 159,9 | 340,4 |
Consolidated statement of financial position
| 30.6. | 31.12. | ||
|---|---|---|---|
| EUR million | Note | 2022 | 2021 |
| Non-current assets | |||
| Property, plant and equipment | 3 | 733.9 | 752.7 |
| Right-of-use assets | 3 | 93.7 | 91.0 |
| Goodwill | 3 | 1,151.3 | 1,139.4 |
| Intangible assets | 3 | 208.2 | 198.1 |
| Investments in associated companies | 12 | 10.0 | 10.6 |
| Other financial assets | 4 | 16.0 | 16.4 |
| Trade and other receivables | 4 | 107.9 | 103.2 |
| Deferred tax assets | 13.0 | 13.1 | |
| 2,333.9 | 2,324.5 | ||
| Current assets | |||
| Inventories | 92.4 | 82.8 | |
| Trade and other receivables | 493.9 | 506.3 | |
| Tax receivables | 1.0 | 0.7 | |
| Cash and cash equivalents | 87.0 | 114.1 | |
| 674.3 | 703.9 | ||
| Total assets | 3,008.2 | 3,028.4 | |
| Equity attributable to equity holders of the parent | 6 | 1,050.7 | 1,197.8 |
| Non-controlling interests | 6.2 | 6.3 | |
| Total shareholders' equity | 1,056.9 | 1,204.1 | |
| Non-current liabilities | |||
| Deferred tax liabilities | 22.7 | 25.3 | |
| Interest-bearing financial liabilities | 4, 7 | 1,143.1 | 1,141.4 |
| Lease liabilities, interest-bearing | 4 | 74.3 | 73.4 |
| Trade payables and other liabilities | 4, 5 | 35.2 | 41.0 |
| Pension obligations | 14.4 | 14.4 | |
| Provisions | 8 | 2.8 | 2.8 |
| 1,292.5 | 1,298.3 | ||
| Current liabilities | |||
| Interest-bearing financial liabilities | 4, 7 | 280.1 | 100.2 |
| Lease liabilities, interest-bearing | 4 | 20.3 | 18.1 |
| Trade and other payables | 4, 5 | 348.0 | 401.6 |
| Tax liabilities | 8.5 | 2.9 | |
| Provisions | 8 | 2.0 | 3.1 |
| 658.9 | 526.0 | ||
| Total equity and liabilities | 3,008.2 | 3,028.4 |
Condensed consolidated cash flow statement
| 1-6 | 1-6 | 1-12 | |
|---|---|---|---|
| EUR million | 2022 | 2021 | 2021 |
| Cash flow from operating activities | |||
| Profit before tax | 216.7 | 195.7 | 418.4 |
| Adjustments | |||
| Depreciation, amortisation and impairment | 131.7 | 134.3 | 266.6 |
| Other adjustments | -3.9 | -2.1 | -2.9 |
| 127.7 | 132.2 | 263.7 | |
| Change in working capital | |||
| Increase (-) / decrease (+) in trade and other receivables | 26.0 | 28.0 | -31.7 |
| Increase (-) / decrease (+) in inventories | -9.5 | -6.3 | -17.6 |
| Increase (+) / decrease (-) in trade and other payables | -52.3 | -17.4 | 52.6 |
| -35.8 | 4.3 | 3.3 | |
| Financial items, net | -6.9 | -11.5 | -14.0 |
| Taxes paid | -38.6 | -37.1 | -75.7 |
| Net cash flow from operating activities | 263.2 | 283.5 | 595.7 |
| Cash flow from investing activities | |||
| Capital expenditure | -115.8 | -123.2 | -258.8 |
| Investments in shares and business combinations | -12.6 | -9.7 | -15.7 |
| Loans granted | -0.5 | -0.5 | |
| Repayment of loan receivables | 0.1 | ||
| Proceeds from disposal of assets | 0.1 | 0.8 | 0.8 |
| Net cash used in investing activities | -128.2 | -132.6 | -274.1 |
| Cash flow before financing activities | 135.0 | 150.9 | 321.6 |
| Cash flow from financing activities | |||
| Proceeds from long-term borrowings | 100.4 | 100.4 | |
| Repayments of long-term borrowings | -0.1 | -174.0 | -174.1 |
| Increase (+) / decrease (-) in short-term borrowings | 179.9 | 110.5 | -19.6 |
| Repayment of lease liabilities | -12.1 | -10.5 | -23.1 |
| Dividends paid | -330.1 | -312.6 | -310.9 |
| Net cash used in financing activities | -162.5 | -286.3 | -427.4 |
| Change in cash and cash equivalents | -27.5 | -135.4 | -105.8 |
| Translation differences | 0.4 | -0.3 | -0.2 |
| Cash and cash equivalents at beginning of period | 114.1 | 220.1 | 220.1 |
| Cash and cash equivalents at end of period | 87.0 | 84.4 | 114.1 |
Consolidated statement of changes in equity
| Reserve for | |||||||
|---|---|---|---|---|---|---|---|
| invested | |||||||
| non- | Non-cont | ||||||
| Share | Treasury restricted | Other | Retained | rolling | Total | ||
| EUR million | capital | shares | equity | reserves | earnings | interests | equity |
| Balance at 1 January 2021 | 83.0 | -128.4 | 90.9 | 375.7 | 761.5 | 1.5 | 1,184.2 |
| Profit for the period | 160.8 | 0.0 | 160.8 | ||||
| Translation differences | -0.9 | 0.0 | -0.8 | ||||
| Cash flow hedge | -0.1 | -0.1 | |||||
| Total comprehensive income | -0.1 | 160.0 | 0.0 | 159.9 | |||
| Dividend distribution | -312.3 | 0.0 | -312.4 | ||||
| Share-based compensation | 2.3 | 2.3 | |||||
| Other changes | -3.2 | -3.2 | |||||
| Balance at 30 June 2021 | 83.0 | -126.1 | 90.9 | 375.6 | 605.9 | 1.4 | 1,030.8 |
| EUR million | |||||||
| Balance at 1 January 2022 | 83.0 | -126.1 | 90.9 | 373.9 | 776.1 | 6.3 | 1,204.1 |
| Profit for the period | 177.0 | -0.7 | 176.4 | ||||
| Translation differences | -1.6 | 0.1 | -1.5 | ||||
| Cash flow hedge | 4.0 | 4.0 | |||||
| Total comprehensive income | 4.0 | 175.5 | -0.6 | 178.9 | |||
| Dividend distribution | -328.5 | -0.1 | -328.7 | ||||
| Share-based compensation | 1.6 | 1.6 | |||||
| Other changes | 0.4 | 0.6 | 1.0 | ||||
| Balance at 30 June 2022 | 83.0 | -124.5 | 90.9 | 377.9 | 623.4 | 6.2 | 1,056.9 |
Notes
ACCOUNTING PRINCIPLES
The interim report has been prepared in compliance with IAS 34 Interim Financial Reporting. The information has been prepared in accordance with the International Financial Reporting Standards (IFRS) effective at the time of preparation and adopted for use by the 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 on 31 December 2021.
Changes in the accounting principles
Amendments to IFRS standards adopted as of 1 January 2022 do not have a material impact on the Company's consolidated financial statements.
1. Segment information
| 4-6/2022 | Consumer | Corporate Unallocated | Group | |
|---|---|---|---|---|
| EUR million | Customers | Customers | items | total |
| Revenue | 318.7 | 202.9 | 521.5 | |
| EBITDA | 120.8 | 56.6 | 177.4 | |
| Depreciation, amortisation and impairment | -43.4 | -22.5 | -65.9 | |
| EBIT | 77.4 | 34.1 | 111.5 | |
| Financial income | 1.9 | 1.9 | ||
| Financial expenses | -4.7 | -4.7 | ||
| Share of associated companies' profit | -0.3 | -0.3 | ||
| Profit before tax | 108.4 | |||
| Investments | 44.5 | 22.2 | 66.8 | |
| 4-6/2021 | Consumer | Corporate Unallocated | Group | |
| EUR million | Customers | Customers | items | total |
| Revenue (1 | 301.7 | 182.6 | 484.3 | |
| EBITDA (1 | 115.8 | 50.3 | 166.2 | |
| Depreciation, amortisation and impairment (1 | -43.7 | -23.0 | -66.6 | |
| EBIT (1 | 72.2 | 27.3 | 99.5 | |
| Financial income | 1.0 | 1.0 | ||
| Financial expenses | -3.8 | -3.8 | ||
| Share of associated companies' profit | -0.2 | -0.2 | ||
| Profit before tax | 96.5 |
1) Allocation rules of the revenue and expenses allocated to the segments have been specified in 2022 and the comparable figures have been updated to reflect the advanced allocations. In comparison period 4-6/2021 Consumer Customers revenue was EUR 301.3 million, EBITDA EUR 115.4 million, depreciation, amortisation and impairment EUR -40.6 million and EBIT EUR 74.9 million. In comparison period 4-6/2021 Corporate Customers revenue was EUR 183.0 million, EBITDA EUR 50.8 million and depreciation, amortisation and impairment EUR -26.1. million and EBIT EUR 24.7 million.
| 1-6/2022 | Consumer | Corporate Unallocated | Group | |
|---|---|---|---|---|
| EUR million | Customers | Customers | items | total |
| Revenue | 631.4 | 401.5 | 1,032.9 | |
| EBITDA | 242.0 | 112.5 | 354.5 | |
| Depreciation, amortisation and impairment | -87.1 | -44.6 | -131.7 | |
| EBIT | 154.9 | 67.9 | 222.8 | |
| Financial income | 3.4 | 3.4 | ||
| Financial expenses | -8.8 | -8.8 | ||
| Share of associated companies' profit | -0.7 | -0.7 | ||
| Profit before tax | 216.7 | |||
| Investments | 82.9 | 42.6 | 125.5 |
| 1-6/2021 EUR million |
Consumer Customers |
Customers | Corporate Unallocated items |
Group total |
|---|---|---|---|---|
| Revenue (1 | 601.1 | 364.8 | 965.9 | |
| EBITDA (1 | 233.7 | 102.1 | 335.9 | |
| Depreciation, amortisation and impairment (1 | -87.4 | -46.9 | -134.3 | |
| EBIT (1 | 146.3 | 55.2 | 201.6 | |
| Financial income | 2.3 | 2.3 | ||
| Financial expenses | -8.0 | -8.0 | ||
| Share of associated companies' profit | -0.2 | -0.2 | ||
| Profit before tax | 195.7 | |||
| Investments | 74.3 | 45.7 | 120.0 |
1) Allocation rules of the revenue and expenses allocated to the segments have been specified in 2022 and the comparable figures have been updated to reflect the advanced allocations. In comparison period 1-6/2021 Consumer Customers revenue was EUR 600.2 million, EBITDA EUR 232.4 million, depreciation, amortisation and impairment EUR -81.2 million and EBIT EUR 151.2 million. In comparison period 1-6/2021 Corporate Customers revenue was EUR 365.7 million, EBITDA EUR 103.4 million and depreciation, amortisation and impairment EUR -53.1 million and EBIT EUR 50.3 million.
| 1-12/2021 | Consumer | Corporate Unallocated | Group | |
|---|---|---|---|---|
| EUR million | Customers | Customers | items | total |
| Revenue (1 | 1,242.5 | 755.4 | 1,997.9 | |
| EBITDA (1 | 476.0 | 221.4 | 697.4 | |
| Depreciation, amortisation and impairment (1 | -174.0 | -92.5 | -266.6 | |
| EBIT (1 | 302.0 | 128.8 | 430.8 | |
| Financial income | 4.6 | 4.6 | ||
| Financial expenses | -16.5 | -16.5 | ||
| Share of associated companies' profit | -0.5 | -0.5 | ||
| Profit before tax | 418.4 | |||
| Investments | 168.7 | 96.3 | 265.1 | |
| Total assets | 1,822.3 | 1,051.2 | 154.9 | 3,028.4 |
1) Allocation rules of the revenue and expenses allocated to the segments have been specified in 2022 and the comparable figures have been updated to reflect the advanced allocations. In comparison period 1-12/2021 Consumer Customers revenue was EUR 1,241.3 million, EBITDA EUR 475.1 million, depreciation, amortisation and impairment EUR -160.7 million and EBIT EUR 314.4 million. In comparison period 1-12/2021 Corporate Customers revenue was EUR 756.6 million, EBITDA EUR 222.3 million, depreciation, amortisation and impairment EUR -105.8 million and EBIT EUR 116.5 million.
2. Acquisitions and disposals
Acquisition of FRINX s.r.o
On 31 March 2022, Elisa Polystar acquired FRINX s.r.o, a Slovak telecom network automation software supplier. FRINX products and software will complement Elisa Polystar's zero-touch automation and analytics offering, which helps communications service providers (CSPs) to comprehensively automate their network management processes in a multivendor telecom network environment.
The price paid for the acquisition was EUR 14.2 million including the contingent consideration of EUR 0.9 million. The acquisition resulted in EUR 13.1 million of goodwill relating to growing Elisa's digital businesses internationally and strengthening Elisa's IndustrIQ business. The calculation of the allocation of the acquisition price is preliminary, as the valuation of the acquired net assets has not been fully completed.
| Consideration transferred | |
|---|---|
| EUR million | Preliminary |
| Cash paid | 13.4 |
| Contingent consideration | 0.9 |
| Total acquisition price | 14.2 |
| Analysis of net assets acquired | |
| EUR million | |
| Tangible assets | 0.0 |
| Trade and other receivables | 0.8 |
| Cash and cash equivalents | 1.0 |
| Trade payables and other liabilities | -0.3 |
| Tax liabilities | -0.3 |
| 1.1 | |
| Effects of acquisition on cash flow | |
| EUR million | |
| Purchase price paid in cash | -13.4 |
| Cash and cash equivalents of the acquired entity | 1.0 |
| -12.4 | |
| Goodwill arising from business combination | |
| EUR million | |
| Consideration transferred | 14.2 |
| Identifiable net assets of the acquired entity | 1.1 |
| Goodwill | 13.1 |
Disposals
There were no significant disposals during the reporting period.
| 3. Property, plant and equipment and intangible assets | ||||
|---|---|---|---|---|
| -- | -- | -- | -- | -------------------------------------------------------- |
| Property | Other | ||
|---|---|---|---|
| 30.6.2022 | plant and | intangible | |
| EUR million | equipment | Goodwill | assets |
| Acquisition cost at 1 January 2022 | 4,622.6 | 1,160.6 | 903.5 |
| Business acquisitions | 0.0 | 13.9 | 0.1 |
| Additions | 76.5 | 34.3 (1 | |
| Additions, right-of-use assets | 14.7 | ||
| Disposals | -62.0 | 0.0 | |
| Reclassifications | -8.6 | 0.7 | |
| Translation differences | 0.5 | -2.0 | -0.3 |
| Acquisition cost at 30 June 2022 | 4,643.7 | 1,172.5 | 938.3 |
| Accumulated depreciation, amortisation and | 3,778.9 | 21.2 | 705.4 |
| impairment at 1 January 2022 | |||
| Depreciation, amortisation and impairment | 102.8 | 28.9 | |
| Accumulated depreciation and amortisation on business | |||
| acquisitions | 0.0 | 0.1 | |
| Accumulated depreciation and amortisation on disposals | |||
| and reclassifications | -65.9 | -4.0 | |
| Translation differences | 0.3 | -0.1 | -0.3 |
| Accumulated depreciation, amortisation and | 3,816.1 | 21.2 | 730.2 |
| impairment at 30 June 2022 | |||
| Book value at 1 January 2022 | 843.7 | 1,139.4 | 198.1 |
| Book value at 30 June 2022 | 827.6 | 1,151.3 | 208.2 |
| Property | Other | ||
| 30.6.2021 | plant and | intangible | |
| EUR million | equipment | Goodwill | assets |
| Acquisition cost at 1 January 2021 | 4,415.8 | 1,152.5 | 938.9 |
| Business acquisitions | 2.0 | -1.8 | 0.7 |
| Additions | 89.1 | 23.4 | |
| Additions, right-of-use assets | 7.5 | ||
| Disposals | -3.9 | ||
| Reclassifications | -2.4 | -3.1 | |
| Translation differences | 0.1 | -0.2 | 0.0 |
| Acquisition cost at 30 June 2021 | 4,508.2 | 1,150.5 | 959.8 |
| Accumulated depreciation, amortisation and | 3,586.1 | 21.1 | 728.8 |
| impairment at 1 January 2021 | |||
| Depreciation, amortisation and impairment | 104.2 | 30.1 | |
| Accumulated depreciation and amortisation on business | |||
| acquisitions | 1.1 | 0.7 | |
| Accumulated depreciation and amortisation on disposals | |||
| and reclassifications | -6.7 | -2.7 | |
| Translation differences | 0.1 | 0.1 | 0.0 |
| Accumulated depreciation, amortisation and | 3,684.8 | 21.2 | 756.9 |
| impairment at 30 June 2021 | |||
| Book value at 1 January 2021 | 829.7 | 1,131.4 | 210.1 |
| Book value at 30 June 2021 | 823.3 | 1,129.3 | 202.9 |
1) Includes Estonian 3,5 GHz spectrum licence in a carrying amount of EUR 7.2 million.
Commitments to purchase property, plant and equipment and intangible assets amounted to EUR 69.9 (52.0) million on 30 June 2022.
The lease commitments for rental agreements commencing in the future, in accordance with IFRS 16, were EUR 0.1 (0.5) million on 30 June 2022.
| Financial | Financial | Financial | |||
|---|---|---|---|---|---|
| assets/liabilities | assets/liabilities | assets/ | |||
| measured at | measured at fair | liabilities | |||
| fair value | value through | measured at | |||
| 30.6.2022 | through | other compre- | amortised | Book | Fair |
| EUR million | profit or loss | hensive income | cost | values | values |
| Non-current financial assets | |||||
| Other financial assets (1 | 0.5 | 15.5 | 16.0 | 16.0 | |
| Trade and other receivables | 6.7 | 101.2 | 107.9 | 107.9 | |
| Current financial assets | |||||
| Trade and other receivables | 493.9 | 493.9 | 493.9 | ||
| 0.5 | 6.7 | 610.6 | 617.8 | 617.8 | |
| Non-current financial liabilities | |||||
| Financial liabilities | 1,217.4 | 1,217.4 | 1,178.3 | ||
| Trade and other payables (2 | 3.9 | 0.1 | 26.8 | 30.8 | 30.8 |
| Current financial liabilities | |||||
| Financial liabilities | 300.4 | 300.4 | 300.4 | ||
| Trade and other payables (2 | 0.2 | 337.2 | 337.4 | 337.4 | |
| 4.1 | 0.1 | 1,881.8 | 1,886.0 | 1,846.9 | |
| Financial | Financial | Financial | |||
| assets/liabilities | assets/liabilities | assets/ | |||
| measured at | measured at fair | liabilities | |||
| fair value | value through | measured at | |||
| 31.12.2021 | through | other compre- | amortised | Book | Fair |
| EUR million | profit or loss | hensive income | cost | values | values |
| Non-current financial assets | |||||
| Other financial assets (1 | 0.8 | 15.6 | 16.4 | 16.4 | |
| Trade and other receivables | 1.6 | 101.6 | 103.2 | 103.2 | |
| Current financial assets | |||||
| Trade and other receivables | 506.3 | 506.3 | 506.3 | ||
| 0.8 | 1.6 | 623.5 | 625.9 | 625.9 | |
| Non-current financial liabilities | |||||
| Financial liabilities | 1,214.8 | 1,214.8 | 1,239.8 | ||
| Trade and other payables (2 | 3.3 | 0.0 | 33.3 | 36.6 | 36.6 |
| Current financial liabilities | |||||
| Financial liabilities | 118.4 | 118.4 | 118.4 | ||
| Trade and other payables (2 | 392.3 | 392.3 | 392.3 | ||
4. Carrying amounts of financial assets and liabilities by category
1) "Other financial assets" includes Groups' listed and unlisted equity investments.
2) Excluding advances received
The Group's financial assets and liabilities are classified as financial assets and liabilities measured at amortised cost, financial assets and liabilities measured at fair value through other comprehensive income, and financial assets and liabilities measured at fair value through profit or loss. Financial assets and liabilities measured at amortised cost include fixed-term contracts whose cash flow includes payments of principal and interest on the principal outstanding. Financial assets and liabilities measured at fair value through other comprehensive income include those financial items that are expected both to collect contractual cash flows and to sell financial assets. Financial assets and liabilities measured at fair value through profit or loss include items that do not meet the criteria of the other groups.
The Group categorises electricity and currency derivatives that qualify for hedge accounting as financial assets or liabilities measured at fair value through other comprehensive income. Contingent considerations in business combinations and listed equity investments are recognised as financial assets or liabilities measured at fair value through profit or loss. Other financial assets and liabilities are measured at amortised cost.
| EUR million | 30.6.2022 | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|
| Financial assets/liabilities measured at fair value through | ||||
| other comprehensive income | ||||
| Electricity derivatives | 6.7 | 6.7 | ||
| Currency derivatives | -0.1 | -0.1 | ||
| Financial assets/liabilities measured at fair value through | ||||
| profit or loss | ||||
| Listed equity investments | 0.5 | 0.5 | ||
| Contingent considerations relating to business | ||||
| combinations | -4.1 | -4.1 | ||
| 3.0 | 0.5 | 6.6 | -4.1 | |
| EUR million | 31.12.2021 | Level 1 | Level 2 | Level 3 |
| Financial assets/liabilities recognised at fair value | ||||
| through other comprehensive income | ||||
| Electricity derivatives | 1.6 | 1.6 | ||
| Currency derivatives | 0.0 | 0.0 | ||
| Financial assets/liabilities measured at fair value through | ||||
| profit or loss | ||||
| Listed equity investments | 0.8 | 0.8 | ||
| Contingent considerations relating to business | ||||
| combinations | ||||
| -3.3 | -3.3 |
5. Financial assets and liabilities recognised at fair value
Level 1 includes instruments with quoted prices in active markets. Level 2 includes instruments with observable prices based on market data. Level 3 includes instruments with prices that are not based on verifiable market data, but instead on the company's internal information, for example.
6. Equity
| Number of shares pcs |
Treasury shares pcs |
Holding, % of shares and votes |
|
|---|---|---|---|
| Shares at 31 December 2022 | 167,335,073 | 7,147,772 | 4.27 % |
| Disposal of treasury shares | -72,394 | ||
| Shares at 30 June 2022 | 167,335,073 | 7,075,378 | 4.23 % |
Dividend
On 6 April 2022, Elisa's Annual General Meeting decided on a dividend of 2.05 euros per share. The total dividend amounts to EUR 328.5 million and payment started on 20 April 2022.
7. Issuance and repayment of debt securities
On May 2022, Elisa repaid the EUR 100 million Schuldschein loan. On the same day Elisa issued an equal amount loan for short-term financing under the credit facility. The credit facility is valid until 31 May 2023 and it was arranged by Landesbank Baden-Württemberg.
On 3 February 2022, Elisa has established a Sustainability Finance Framework to support the company's sustainability goals. Elisa can issue bonds and other financial instruments to finance or refinance sustainable investments and projects in accordance with the Framework.
Current financial liabilities include a EUR 100 million loan, which matures on 4 August 2022 and outstanding commercial papers of EUR 180.0 million.
The unused amount of the EUR 1,500 million EMTN programme is EUR 600 million as of 30 June 2022.
| 30.6. | 31.12. | |
|---|---|---|
| EUR million | 2022 | 2021 |
| Issued bonds, nominal value | 900.0 | 900.0 |
| Issued commercial papers | 180.0 | 0.0 |
| Withdrawn credit facilities | 100.0 | |
| Withdrawn committed credit lines | 0.0 | 0.0 |
8. Provisions
| EUR million | Termination benefits |
Other | Total |
|---|---|---|---|
| 1 January 2022 | 4.3 | 1.7 | 5.9 |
| Increase in provisions | 1.5 | 1.5 | |
| Reversals of unused provisions | -0.5 | -0.5 | |
| Utilised provisions | -2.2 | -2.2 | |
| 30 June 2022 | 3.1 | 1.7 | 4.8 |
| Termination | |||
|---|---|---|---|
| EUR million | benefits | Other | Total |
| 1 January 2021 | 1.7 | 1.7 | 3.4 |
| Increase in provisions | 6.2 | 6.2 | |
| Reversals of unused provisions | -0.9 | -0.9 | |
| Utilised provisions | -1.2 | -1.2 | |
| 30 June 2021 | 5.8 | 1.7 | 7.5 |
9. Off-balance sheet lease commitments
The future minimum lease payments under non-cancellable off-balance sheet leases:
| 30.6. | 31.12. | |
|---|---|---|
| EUR million | 2022 | 2021 |
| Within one year | 12.3 | 12.5 |
| Later than one year, not later than five years | 4.8 | 4.7 |
| Later than five years | 1.1 | 1.2 |
| 18.2 | 18.4 |
Lease commitments are exclusive of value added tax.
10. Contingent liabilities
| 30.6. | 31.12. | |
|---|---|---|
| EUR million | 2022 | 2021 |
| For our own commitments | ||
| Mortgages | 3.8 | 3.8 |
| Guarantees | 0.8 | 0.4 |
| Deposits | 0.4 | 0.4 |
| 5.0 | 4.6 | |
| Other contractual obligations | ||
| Venture capital investment commitment | 0.6 | 0.8 |
| Repurchase obligations | 0.0 | |
| 0.6 | 0.8 |
11. Derivative instruments
| 30.6. | 31.12. | |
|---|---|---|
| EUR million | 2022 | 2021 |
| Nominal values of derivatives | ||
| Electricity derivatives | 2.8 | 1.9 |
| Currency derivatives | 3.3 | 3.5 |
| 6.1 | 5.5 | |
| Fair values of derivatives | ||
| Electricity derivatives | 6.7 | 1.6 |
| Currency derivatives | -0.1 | 0.0 |
| 6.6 | 1.6 |
12. Related party transactions
The Group's related parties include the parent company, subsidiaries, associates and joint ventures. The related parties also include Elisa's Board of Directors, the CEO, the Executive Board as well as entities controlled by them and close members of their family.
| Related party transactions with associated companies EUR million |
1-6 2022 |
1-6 2021 |
1-12 2021 |
|---|---|---|---|
| Revenue | 0.3 | 0.2 | 0.5 |
| Purchases | 0.5 | 0.4 | 0.8 |
| Receivables | 0.1 | 0.6 | 0.1 |
| Liabilities | 0.0 | 0.0 | 0.0 |
There were no related party transactions with the key management.
The salaries and remuneration paid to the management of Elisa Group will be published in the annual consolidated financial statements.
13. Key figures
| EUR million | 1-6 2022 |
1-6 2021 |
1-12 2021 |
|---|---|---|---|
| Shareholders' equity per share, EUR | 6.56 | 6.43 | 7.48 |
| Interest-bearing net debt | 1,430.9 | 1,379.0 | 1,219.1 |
| Gearing, % | 135.4 % | 133.8 % | 101.2 % |
| Equity ratio, % | 35.3 % | 35.8 % | 39.9 % |
| Return on investment (ROI), % *) | 17.5 % | 16.1 % | 16.9 % |
| Gross investments in fixed assets, | 125.5 | 120.0 | 265.1 |
| of which right-of-use assets | 14.7 | 7.5 | 18.0 |
| Gross investments as % of revenue | 12.2 % | 12.4 % | 13.3 % |
| Investments in shares and business combinations | 14.4 | 10.0 | 28.1 |
| Average number of employees | 5,410 | 5,396 | 5,391 |
*) Rolling 12 months' profit preceding the reporting date
Financial calendar
Interim Report Q3 2022 19 October 2022
Contact information
Investor Relations: [email protected]
Press: [email protected]
Elisa website: www.elisa.com
