Slides
Page 1
Interim Report Q2 2025 15 July 2025
Page 2
Q2 2025 highlights • Revenue increased by 2.0%, driven by growth in international software services and an increase in mobile service revenue. Equipment sales decreased €12m YoY . • Mobile service revenue increased by 3.4% • International software services revenue increased by 70.7%, comparable growth 9.6% • Comparable EBITDA up 4.3% • Comparable cash flow grew by 20.4% • In Finland, post-paid churn decreased to 17.1% (18.6% in Q1 2025) • Post-paid subscriptions increased by 42,800, of which 14,100 were M2M and IoT subscriptions • Fixed broadband subscription base increased by 4,400 • Successful launch of security features to consumer voice subscriptions – well received by customers INTERIM REPORT Q2 2025 2
Page 3
Good EBITDA growth driven by MSR and efficiency INTERIM REPORT Q2 2025 23,1 23,2 23,6 23,9 24,1 15,0% 16,8% 20,2% 18,6% 17,1% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 252 254 255 255 260 4,7% 4,8% 4,1% 2,6% 3,4% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 190 206 198 199 198 35,1% 38,4% 34,1% 35,8% 35,8% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 541 536 580 556 552 1,6% -1,6% 2,9% 4,0% 2,0% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenue Mobile service revenue EBITDA1) ARPU and churn2) Increase • ISS and mobile services • Acquisitions • Interconnection and roaming Decrease • Fixed services • Equipment sales • 5G upselling continuing • Product changes • Mobile services • ISS, cyber services and fibre • Efficiency improvements • YoY ARPU growth 4.3% • 5G upselling • Campaigning continuing in 4G • Competition remains keen 2) Finland, churn annualised1) Comparable Post-paid ARPU, € Post-paid churn,% MSR, €m YoY change,% EBITDA, €m EBITDA-% Revenue, €m YoY change, % 3
Page 4
Good EBITDA growth, weak macro trends impacted B2B in Q2 INTERIM REPORT Q2 2025 Consumer Customers Corporate Customers Revenue +2.4% + Mobile and fixed services + Interconnection and roaming - Equipment sales EBITDA1 +3.6% Revenue -6.4% - Fixed services - Equipment sales + Mobile and domestic digital services + Interconnection and roaming EBITDA1 -0.2% 1) Comparable4 International Software Services Revenue +70.8% + Acquisitions + Comparable growth +9.6% + Services and recurring revenue EBITDA1 +€3m 196 176 196 187 18361 68 62 62 61 31% 38% 32% 33% 33% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 323 338 345 329 331134 144 135 135 139 41% 43% 39% 41% 42% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 22 22 39 40 38-6 -6 1 2 -2 -25% -27% 2% 5% -6% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenue, €m EBITDA1, €m EBITDA-%
Page 5
Updated strategy INTERIM REPORT Q2 2025 5 Our vision We are the global benchmark for generating value in communication and digital services. Our constant pursuit of excellence and innovation makes us better every day.
Page 6
Success in mobile continuing, accelerated fiber rollout New mobile services, upsell continues • Upgrade with security features for consumer voice subscriptions • Extension of 5.5G network in Finland and Estonia with Nokia • Elisa's 5G network rated as the fastest in Estonia by Ookla • Moontalk AIRI for corporate customers Good momentum in fiber business continuing • Strong revenue growth • Accelerated network construction • New offering for MDUs launched 1) In Finland INTERIM REPORT Q2 2025 – BUSINESS HIGHLIGHTS 6 5G smartphone and speed penetration1) 46% 49% 53% 56% 59% 61% 65% 67% 69% 47% 49% 51% 52% 55% 56% 58% 59% 62% 53% 51% 49% 48% 45% 44% 42% 41% 38% Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 5G smartphone penetration >200 Mbps <200 Mbps Average billing increase of over €3 in 5G upgrades intact
Page 7
Solid performance in digital and software services 7 Home Services • New Elisa Viihde original series (The Man Who Died, season 2) • Elisa Kotiturva home security service launched • In collaboration with Avarn Security, a Finnish provider of security services Corporate IT & Cyber • Significant new customer wins in IT services • Number of workstations in Elisa’s AI-enhanced service will increase by 40% during 2025 • Production of Digital Workplace services enhanced by 3.3 person-years during H1 with AI and automation • Strong growth in cybersecurity services continued International Software Services • Double-digit organic growth expected for full year • Some delays in customer decision-making impacting order intake • Several multi-year contracts, especially in telco industry INTERIM REPORT Q2 2025 – BUSINESS HIGHLIGHTS
Page 8
8 We are proud to be ranked as the 55th most sustainable company in the world and as one of the 500 best employers in Europe.
Page 9
Outlook and guidance for 2025 The development of the general economy includes many uncertainties. Growth in the Finnish economy is expected to be weak. In particular, there is continuing uncertainty in global supply chains relating to Russia’s war in Ukraine and other conflicts. Competition remains keen. • Revenue at same level as or slightly higher than in 2024 • Comparable EBITDA at same level or slightly higher than in 2024 • CAPEX* max. 12% of revenue INTERIM REPORT Q2 2025 * Excluding leasing, licences and business acquisitions 9
Page 10
Financial review Q2 2025
Page 11
Good EBITDA growth continuing 11 INTERIM REPORT Q2 2025 Q2 2025 YoY revenue change +€11m 541 552 -2 12 0 9 1 16 Q2/24 Q2/25 1) Comparable figures. Growth is calculated using exact figures prior to rounding. EUR million1 Q2/25 Q2/24 Change % 2024 Revenue 552.4 541.4 11.1 2.0% 2,191 Other operating income 3.3 1.8 1.5 80.6 % 6 Materials and services -180.8 -192.4 11.7 -6.1% -784 Employee expenses -118.3 -106.8 -11.5 10.7% -433 Other operating expenses -60.8 -54.0 -6.7 12.5% -214 EBITDA 198.0 189.9 8.1 4.3% 783 EBITDA % 35.8% 35.1% 35.7% Depreciation -73.8 -68.6 -5.2 7.6% -279 EBIT 124.3 121.3 2.9 2.4% 504 EBIT % 22.5% 22.4% 23.0% Financial expenses net -10.5 -7.7 -2.9 37.3% -35 Profit before tax 113.8 113.7 0.1 0.1% 469 Net profit 91.8 91.4 0.5 0.5% 375 EPS, € 0.57 0.57 -0.00 -0.1% 2.35 Mobile Fixed Domestic digital International Software Services Equipment sales Inter- connection & other
Page 12
Profitability improved in Estonia • One-time deal impacted revenue change • Revenue decreased by EUR 6m or 10% • Comparison period included EUR 7m one-time deal; excluding this deal, revenue increased by 2% • Strong growth in mobile service revenue • EBITDA increased by 4% • MSR growth, cost efficiency measures, revenue mix • Mobile post-paid base +3,800; pre-paid -4,100 • Churn 8.6% (10.2% in Q1) 12 INTERIM REPORT Q2 2025 Source: Eurostat Revenue EBITDA 60,5 54,1 57,4 52,9 54,2 9,4% -4,1% -4,8% 3,9% -10,4% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 17,4 19,1 17,9 17,1 18,1 28,8% 35,3% 31,2% 32,3% 33,4% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Revenue, €m YoY change, % EBITDA, €m EBITDA-%
Page 13
17 15 62 6 2 4 6 13 7 13 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Full-year CAPEX guidance intact • CAPEX: €89m (84), excl. licences, lease agreements and acquisitions: €76m (81) • Consumer Customers €57m (58) • Corporate Customers €31m (26) • International Software Services €1m (0) • Main CAPEX areas • 5G coverage increase • Fiber and other networks • IT investments 13 INTERIM REPORT Q2 2025 1) Investments excluding shares. business acquisitions, licences and rental agreements (IFRS 16) 81 77 80 65 76 15% 14% 14% 12% 14% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 CAPEX / sales1 % Shares, €m Licences, €m CAPEX1) Shares, business acquisitions, licences and rental agreements (IFRS 16) IFRS 16, €m
Page 14
Strong cash flow • Comparable cash flow: €113m (94), increase 20% + Higher EBITDA, positive change in NWC, lower CAPEX - Financial expenses and taxes • H1 comparable cash flow: €196m (180), increase 9% + Higher EBITDA and positive change in NWC - Financial expenses and CAPEX • 14 INTERIM REPORT Q2 2025 Operating cash flow, €m1) Cash conversion 1) Comparable EBITDA – CAPEX excluding shares, business acquisitions, licences and rental agreements (IFRS 16) (EBITDA − CAPEX) / EBITDA, %1 109 129 112 134 122 58% 63% 58% 67% 62% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Cash flow and comparable cash flow, €m 76 95 23 77 112 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 15 12 -13 3 30 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Comparable Change in net working capital, €m 94 111 66 82 113
Page 15
Efficient capital structure and good returns • Solid capital structure • Net debt / EBITDA: 1.9× (target 1.5–2×) • Equity ratio: 32.7% (target >35%) • Return ratios at good level • Efficient capital structure • EUR 300m, 5-year bond issued in May • Coupon 2.875 % • Buyback of EUR 115m bonds due in 2026 • Average interest expense: ~2.5% 15 INTERIM REPORT Q2 2025 Return ratios2) ROE ROI Net debt 1 219 1 276 1 304 1 473 1 495 1,7 1,7 1,7 1,9 1,9 2021 2022 2023 2024 Q2/25 Net debt, €m Net debt / EBITDA 29,3% 30,5% 29,7% 29,0% 30,4% 17,2 % 18,4 % 18,7 % 18,5 % 18,7 % 2021 2022 2023 2024 2025 YTD 1) RCFs were undrawn as of 30 June 2025 2) Comparable 185 300 300 300177 33 146 154 100 100 2025 2026 2027 2028 2029 2030 2031 Bonds RCF1) CPLoans Maturities as of 30 June 2025, €m Loan facility
Page 16
Q&A
Page 17
P&L by quarter 17 APPENDIX EUR million Q2/25 Q1/25 Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Revenue 552.4 555.8 579.7 535.9 541.4 534.5 563.3 544.7 532.7 YoY growth 2.0% 4.0% 2.9% -1.6% 1.6% -1.0% 0.1% 2.0% 2.2% Other operating income 3.3 1.6 2.6 1.1 1.8 0.7 2.4 1.7 1.3 Materials and services -180.8 -189.0 -217.2 -189,1 -192.4 -185.2 -213.7 -205.7 -193.5 Employee expenses -118.3 -120.3 -113.4 -93,2 -106.8 -120.0 -105.0 -97.1 -106.8 Other operating expenses -60.8 -53.5 -60.4 -48,7 -54.0 -50.3 -55.7 -45.0 -51.0 EBITDA 195.9 194.6 191.2 205.9 189.9 179.7 191.3 198.6 182.7 EBITDA % 35.5% 35.0% 33,0% 38.4% 35.1% 33.6% 34.0% 36.5% 34.3% YoY growth 3.2% 8.3% 0,0% 3.7% 4.0% -2.0% 3.4% 2.4% 3.0% Comparable EBITDA 198.0 198.7 197.6 205.9 189.9 190.0 191.3 198.6 182.7 YoY growth 4.3% 4.6% 3.3% 3.7% 4.0% 3.6% 3.4% 2.4% 1.8% Comparable EBITDA % 35.8% 35.8% 34.1% 38.4% 35.1% 35.5% 34.0% 36.5% 34.3% Depreciation, amortisation and impairment -73.8 -73.0 -72.7 -69.8 -68.6 -68.1 -73.4 -67.2 -66.9 EBIT 122.1 121.6 118.6 136.0 121.3 111.7 117.9 131.3 115.7 Comparable EBIT 124.3 125.7 124.9 136.0 121.3 121.9 123.5 131.3 115.7 Financial income 3.2 2.4 3.0 1.3 2.7 2.4 2.3 2.6 2.4 Financial expense -13.3 -12.1 -15.8 -11.4 -11.8 -8.8 -10.0 -8.2 -8.0 Share of associated companies' profit -0.4 -0.2 -1.0 -0.3 1.4 -1.2 0.5 -0.7 -0.1 Profit before tax 111.6 111.8 104.7 125.5 113.7 -104.0 110.6 125.0 110.0 Comparable profit before tax 113.8 115.9 116.0 125.5 113.7 114.3 116.2 125.0 110.0 Income taxes 21.5 -21.9 -22,5 25.3 -22.3 -21.4 -17.7 -24.9 -20.6 Profit for the period 90.1 89.9 82.2 100.2 91.4 82.6 92.9 100.2 89.4 Comparable profit 91.8 93.2 92.3 100.2 91.4 90.8 97.4 100.2 89.4 Earnings per share (EUR) 0.56 0.56 0.51 0.63 0.57 0.52 0.58 0.63 0.56 Comparable EPS 0.57 0.58 0.58 0.63 0.57 0.57 0.61 0.63 0.56 YoY growth -0,1% 2.3% -5.5% 0.3% 2.4% -0.5% 2.0% -0.7% -0.9%
Page 18
Cash flow YoY comparison 18 APPENDIX 1) Difference is calculated using exact figures prior to rounding. 2) Finland 26 GHZ licence payment EUR 1.4m in Q3/24. 3) Romaric and Moontalk in Q1/24, Leanware and loans granted in Q2/24, Koillisnet in Q3/24, sedApta in Q4/24, iCADA Q1/25. 4) Excludes share and business acquisitions and sales. EUR million Q2/25 Q2/24 Change 1) % H1/25 H1/24 Change 1) % 2024 EBITDA 196 190 6 3% 391 370 21 6% 767 Change in receivables -5 3 -8 -282% 45 51 -6 -12% 30 Change in inventories 3 0 3 590% 4 2 3 147% 6 Change in payables 33 12 21 170% -16 -37 21 -57% -20 Change in NWC 30 15 15 34 16 17 16 Financials (net) -7 -5 -2 44% -24 -17 -8 46% -27 Taxes for the year -22 -21 -1 5% -43 -42 -1 2% -84 Taxes for the previous year 0 0 -1 -2 1 -62% -2 Taxes -23 -21 -1 7% -44 -45 1 -1% -86 CAPEX -75 -80 5 -6% -140 -138 -2 2% -305 Licence fees 2) -1 Investments in shares 3) -1 -18 17 -7 -43 36 -84% -91 Sale of shares 0 0 0 0 0 0 0 Sale of assets and adjustments -9 -6 -3 54% -20 -7 -13 187% -15 Cash flow after investments 112 76 36 47% 189 138 52 37% 256 Cash flow after investments excl. acquisitions 4) 113 94 19 20% 196 180 16 9% 357
Page 19
Cash flow by quarter 19 APPENDIX EUR million Q2/25 Q1/25 Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 EBITDA 196 195 191 206 190 180 191 199 183 Change in receivables -5 51 -60 38 3 48 -53 0 7 Change in inventories 3 1 2 2 0 1 8 0 7 Change in payables 33 -49 45 -28 12 -49 46 7 8 Change in NWC 30 4 -13 12 15 1 1 6 22 Financials (net) -7 -18 -7 -3 -5 -12 -3 -4 -4 Taxes for the year -22 -21 -20 -21 -21 -21 -20 -21 -21 Taxes for the previous year 0 0 -2 0 Taxes -23 -22 -20 -21 -21 -24 -20 -21 -21 CAPEX -75 -65 -80 -88 -80 -58 -104 -72 -64 Licence fees -1 0 0 -1 -2 Investments in shares -1 -5 -43 -6 -18 -24 -2 0 -1 Sale of shares 0 0 4 0 Sale of assets and adjustments -9 -11 -4 -4 -6 -1 -5 1 -6 Cash flow after investments 112 77 23 95 76 62 61 107 108 Cash flow after investments excl. acquisitions 113 82 66 111 94 86 73 107 108
Page 20
Debt structure 20 APPENDIX 1) Lease liabilities are classified as interest-bearing debt in accordance with IFRS 16 from Q1/2019 onwards. 2) The committed credit lines are €130m and €170m facilities that Elisa may use flexibly at agreed- upon pricing. 3) Net debt is interest-bearing debt less cash and interest-bearing receivables. Nominal values of bond, bank loan and CP maturities, 30 June 2025 185 300 300 300177 33 146 154 100 100 2025 2026 2027 2028 2029 2030 2031 Bonds RCF1) CPLoans 1) RCFs were fully undrawn on 30 June 2025. EUR million at the end of the quarter Q2/25 Q1/25 Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Bonds and notes 1,079 896 896 895 895 894 1,141 1,140 894 Commercial paper 210 312 307 191 230 183 35 152 241 Credit facility 0 0 50 0 40 70 0 70 100 Loans from financial institutions 211 211 213 204 204 103 103 103 253 Lease liabilities 1) 97 98 97 90 91 93 89 90 91 Committed credit lines 2) 120 Interest-bearing debt, total 1,598 1,518 1,563 1,381 1,460 1,344 1,367 1,675 1,578 Cash and cash equivalents 103 109 90 82 77 84 63 318 120 Net debt 3) 1,495 1,409 1,473 1,298 1,383 1,260 1,304 1,356 1,459 Loan facility
Page 21
Contacts Mr Vesa Sahivirta vesa.sahivirta@elisa.fi +358 50 520 5555 Ms Kati Norppa kati.norppa@elisa.fi +358 50 308 9773 investor.relations@elisa.fi Forward-looking statements: Statements made in this document relating to the future, including future performance and other trend projections, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements, due to many factors, many of which are outside of Elisa’s control.