ELISA CORPORATION STOCK EXCHANGE RELEASE 10 FEBRUARY 2005 AT
8.30am
ELISAS
OCTOBER-DECEMBER PROFIT BEFORE EXTRAORDINARY ITEMS AND
TAXES INCREASED TO EUR
51 MILLION
October-December
· Profit before extraordinary items and
taxes increased to EUR
51 million (-93). Revenue amounted to EUR 351 million
(391). The
comparable profit before taxes was EUR 33 million (32).
·
During the last quarter of 2004, the number of Elisas
subscriptions in mobile
communications rose by 15 000
subscriptions excluding MVNO subscriptions. At
the
end of the year, the number of subscriptions amounted to
1 383 515. The
number of subscriptions, both for Elisas own and
for service operators in
Elisas network, developed favourably.
· During the fourth quarter, the
number of broadband
subscriptions rose by over 37 000, amounting to 222
307
subscriptions at the end of the year.
· The financial position
strengthened: equity ratio was 51 per
cent (40) and net debt was reduced to
EUR 410 million (654).
In October-December 2004, Elisas key figures
were:
Income statement Financial statements Comparable
EUR
million Q4/2004 Q4/2003 Q4/2004* Q4/2003**
Revenue
351 391 351 351
EBITDA
114 96 96 116
EBIT 55
-83 37 41
Profit before 51 -93
33 32
extraordinary items
and taxes
Earnings per share, 0.26 -0.34 0.17
0.16
EUR
CAPEX 54 63 54
60
Figures describing the financial position and cash flow:
Financial
position 31.12.2004 31.12.2003
Net debt 410
654
Equity ratio, % 51.1 40.4
Cash flow statement 1-12/2004
1-12/2003
Cash flow after 204 105
investments
In
January-December 2004, Elisas key figures were:
Income statement
Financial statements Comparable
EUR million 1-12/2004
1-12/2003 1-12/2004* 1-
12/2003**
Revenue 1356 1538 1356
1382
EBITDA 432 385 414 403
EBIT
193 -34 175 122
Profit before
extraordinary items
166 -74 148 86
and taxes
Earnings per share,
0.78 -0.12 0.68 0.33
EUR
CAPEX
170 194 170 176
*Exclusive of EUR 13 million capital
gain on real estate and EUR 5
million revenue recognition due to a change in
calculating
principles of the pension provision.
** Exclusive of the
Germany-based business, and adjusted to
correspond to the revenue booking
procedure change in mobile
communications, effective as of early 2004, as well
as exclusive
of substantial non-recurring items.
The Board of Directors
will recommend that a dividend of EUR 0.40
per share be distributed for 2004,
and that authorisation to
purchase own shares be acquired.
CEO Veli-Matti
Mattila:
Elisa did well in the fierce market. The 2004 performance
clearly
improved.
More than a year ago we set our target to improve
profitability.
Now our comparable results before taxes have
improved
substantially, by approximately 70 per cent.
Last year Elisa did
very well in the fierce market. Weighed
against the other large mobile
communications operators, we were
the first to turn the amount of
subscriptions back onto a growth
track. Our broadband subscriptions almost
doubled. Elisa Broadband
is now available in every municipality in
Finland.
Elisa underwent a radical restructuring last year. All
our
products and services are now available to our customers in one
desk.
Our operational model was adapted to correspond to the
objectives of an
integrated Elisa. Elisa became an umbrella brand,
offering all mobile
communication services.
Last November, we introduced our third-generation
mobile
communication services. At the early stage, business customers
will be
the main users of these services. In 2005, we expect to
gain thousands of new
3G customers.
We believe the market situation will remain fierce and prices
may
still fall. However, our target is to consolidate our market
position
further and improve our results.
ELISA CORPORATION
Velipekka
Nummikoski
Vice President, Corporate Communications
Further
information:
Mr Veli-Matti Mattila, President and CEO, tel. +358 10 262
2635
Ms Tuija Soanjärvi, CFO, tel. +358 10 262 2606
Mr Vesa Sahivirta,
IR-director, tel. +358 10 262 3036
Distribution:
Helsinki Stock
Exchange
Major media
Financial statement 2004
Market situation
The
market situation was tight throughout 2004. Prices continued
to fall for the
average call minute rate in the mobile phone
business, and subscriber usage
increased. The robust demand for
broadband subscriptions in the fixed network
market prevailed,
whereas the number of traditional subscriptions
decreased.
Elisa invested heavily in sales and continued extensive
marketing.
Consumer awareness of the umbrella brand increased
substantially.
The number of Elisas own mobile phone subscriptions and those
of
service operators in Elisas network continued to develop
favourably. The
decrease in subscriptions in early 2004 was
reversed already in the second
quarter, and the number of
subscriptions at the year-end was larger than a
year earlier. New
operators increased their market share in the low-end
segment.
Elisas Kolumbus subscription that was launched in this
segment
succeeded well, and increased its number of subscriptions.
The
number of broadband subscriptions in the fixed network business
continued
to grow strongly. The number of traditional
subscriptions decreased as voice
shifts to mobile subscriptions.
In April, Elisa revamped its brand as part
of the corporate
strategy process. Elisa became the principal umbrella brand
of the
whole group. In addition, Elisa will use selected retail and
product
brands.
Changes in corporate structure
The groups judicial structure was
radically changed. The mergers
of the following companies into Elisa were
entered in the Trade
Register: Elisa Networks Ltd and Soon Net Ltd on 30 April
2004;
Soon Com Ltd, Oy Heltel Ab, ElisaCom Ltd, RPOCom Oy and
Riihimäen
Puhelin Oy on 1 July 2004. In accordance with an announced
plan,
the following companies merged into their parent company Oy
Radiolinja
Ab: Radiolinja Aava Oy, Radiolinja Suomi Oy, Radiolinja
Origo Oy and Witem Oy.
The change of Oy Radiolinja Abs name to
Elisa Matkapuhelinpalvelut Oy was
entered in the Trade Register on
1 July 2004. The merger of Oy Radiolinja Ab
into Elisa was delayed
due to a district court process on the annulment of the
decision
made at Oy Radiolinja Abs shareholders meeting in spring 2000
to
increase the share capital.
Soon Net Ltd of Elisa and Eltel Networks
signed an agreement on
transferring the installation business. Along with
the
transaction, 67 Soon Net employees joined Eltel Networks on 1
April 2004.
The business transfer applied to the construction,
maintenance and repairing
of the telecommunication network.
Elisa abandoned the Germany-based business
and divested the entire
share capital of its subsidiary Elisa Kommunikation
GmbH to a
consortium led by Apax Partners. Due to the transaction, which
took
place in early 2004, the Germany-based business has not been
consolidated into
Elisa for 2004. The financial impact of the
transaction was recorded for the
year 2003.
On 27 May 2004, extraordinary meetings of Yomi and Elisa
approved
a merger plan, according to which Yomi merged into Elisa on
31
December 2004. For each Yomi share, Yomis shareholders received a
merger
consideration of 0.5654 of a new Elisa share. The
acquisition cost of the
shares within the group amounted to EUR 52
million.
Elisa increased its
holdings in its subsidiary Finnet
International Ltd, a provider of
international telecommunication
services, from 51.2 per cent to 100 per cent.
The purchase price
was EUR 7.7 million. The selling parties were
minority
shareholders which comprise local telcos.
On 30 June 2004, Elisa
and Fujitsu Services Oy signed an agreement
on outsourcing Elisa's desktop and
data centre services to
Fujitsu. The agreement came into force on 1 July 2004.
At the same
time, approximately 100 employees from Elisa joined
Fujitsu.
Performance
Financial statements
Comparable
EUR million 1-12/2004 1-12/2003 1-12/2004
1-12/2003*
Mobile communications 713 757 713
735
Fixed network 654 686 654
686
Germany-based business - 134 - -
Other
businesses 111 98 111 98
Sales between
segments -121 -137 -121 -137
Total
1356 1538 1356 1382
*Exclusive of the Germany-based
business, and adjusted to
correspond to the change in the revenue booking
procedure in
mobile communications, effective as of early 2004.
Elisa's
revenue for January-December decreased by 12 per cent over
the last year. The
reduced revenue was affected by the divested
German operations, the volume of
the traditional fixed network
products, as well as by the reduced
interconnection fees in the
mobile communications business, the fall in
prices, and the change
in the revenue booking procedure. The comparable
revenue decreased
by 2 per cent.
Comparable revenue for the mobile
communication business decreased
by 3 per cent over the previous year. The
fall in prices slightly
exceeded the increased usage. Revenue was boosted by
the enhanced
operations of the Estonian subsidiary.
Revenue for the fixed
network business decreased by 5 per cent
over last year. The change in revenue
was mainly due to the
declining volume in traditional subscription products
and
equipment sales. The increased number of broadband subscriptions
improved
the revenue.
Performance
Financial statements
Comparable
EUR million 1-12/2004 1-12/2003 1-12/2004*
1-
12/2003**
Mobile communications
EBITDA 219 210 219 212
EBITDA,
% 31 % 28 % 31 % 29 %
EBIT
101 73 101 75
Fixed network
EBITDA 185
167 185 180
EBITDA, % 28 % 24 %
28 % 26 %
EBIT 79 45 79
58
Germany-based business
EBITDA - 4 - -
EBIT
- -134 - -
Other businesses and
corporate functions
EBITDA 28
4 10 12
EBIT 14 -17
-4 -10
Total
EBITDA 432 385 414 403
EBITDA, % 32 % 25 % 31 % 29 %
EBIT
193 -34 175 122
*Exclusive of EUR 13
million capital gain on real estate, and EUR
5 million revenue recognition due
to a change in calculating
principles of pension provision.
** Exclusive of
the Germany-based business, and adjusted to
correspond to the change in the
revenue booking procedure in
mobile communications, effective as of early
2004, as well as
exclusive of substantial non-recurring items.
Elisas
EBITDA increased by 12 per cent over the previous year,
and relative
profitability rose to 32 per cent (25) of the
revenue. Improved profitability
was substantially affected by
streamlining measures executed in the business,
reduction in
pension fund payments and disposal of the Germany-based
business.
Elisa sold its former main office and booked a EUR 13
million
capital gain on the transaction. Owing to the change in
calculating
principles of the pension provision, the company also
recognised EUR 5 million
in revenue. All these have been handled
as non-recurring items.
The group's
other financing income and expenses totalled EUR -27
million (-40). The
financing income also included the share of the
associated companies results,
EUR 0.7 million (-0.3). Reduced
financing expenses were mainly due to the
decreased net debt.
Income taxes in the income statement amounted to EUR -52
million
(+60, including a EUR 89 million tax asset booked from the losses
of
the Germany-based business). Altering the tax base from 29 per
cent to 26 per
cent at the beginning of 2005 increased tax
expenses by EUR 2 million due to a
change in the deferred tax
asset.
The group's January-December results
after taxes and minority
interests were EUR 107 million (-17). The group's
earnings per
share (EPS) amounted to EUR 0.78 (-0.12). At the end of 2004,
the
group shareholders' equity per share stood at EUR 6.00 (5.09 at
the end
of 2003).
Mobile communications
1-12/2004 1-12/2003 Change
Number of subscriptions* 1 383 515 1 374
146 1 %
Revenue/subscription**(ARPU), 37.8 41.6 -9
%
Churn**, % 33.7 18.6
Usage,
million minutes* 2 498 2 310 8 %
Usage,
min./subscription/mth** 156 146 7 %
SMS, million minutes*
537 453 19 %
SMS, msg/subscription/mth**
34 29 18 %
Value-added services/revenue 14 % 12 %
* Elisas network operator in Finland
** Elisas service
operator
In 2004, the number of Elisas network operator subscriptions
in
Finland rose by approximately 9 400 excluding MVNO subscriptions.
The
share of Elisas own service operator accounted for
approximately 2 300
subscriptions of the increase.
The usage by subscribers continued to grow
throughout the year.
The number of call minutes increased by approximately 8
per cent,
and the number of SMS messages sent grew by approximately 19
per
cent.
Revenue per subscription (ARPU) decreased by approximately 9
per
cent over last year. This was partly due to a change in the
revenue
booking procedure. Comparable ARPU decreased by
approximately 4 per cent
because of reduced interconnection fees
and consumer prices. The revenue
booking procedure was changed in
early 2004, so that remunerations payable to
providers of value-
added services and interconnection costs to be invoiced
are
directly booked as a deduction of revenue.
Elisas subsidiary in
Estonia succeeded well. Revenue was EUR 75.3
million (60.9), EBITDA EUR 22.5
million (17.5) and EBIT EUR 13.2
million (8.2). At the end of 2004, there were
225 500
subscriptions (167 750).
On 15 April 2004, the Finnish Government
amended 3G mobile
communication licences. The amended licenses allow partial
joint
constructing and use of networks.
On 23 November 2004, Elisa launched
its 3G network for commercial
use and simultaneously began offering the
Vodafone Mobile Connect
3G/GPRS data card, which is connected to
laptops.
Elisa and Saunalahti agreed on initiating mobile
network
cooperation. A part of Saunalahtis new customers use
Elisas
network, and the 3G services to be launched will function on
Elisas
network.
Fixed network business
Number of subscriptions 31.12.2004
31.12.2003 Change
Broadband subscriptions 222 307 127 388
75 %
ISDN channels 159 591 200 455 -20
%
Cable TV subscriptions 198 447 183 469 8 %
Analogue
and other 639 202 675 272 -5
%
subscriptions
Subscriptions, total 1 219 547 1 186 584
3 %
Brisk demand for broadband subscriptions continued during the
whole
2004. In autumn, the speeds in slower categories were
doubled, and the prices
of the greater speed categories were
reduced. The number of broadband
subscriptions increased by 75 per
cent over the previous year. The number of
traditional
subscriptions continued to decrease as voice is shifting to
the
mobile network and data to broadband subscriptions.
Elisa continued to
substantially expand the coverage area of
broadband during 2004. By the end of
the year, the availability of
broadband was extended to every municipality in
Finland. Sales in
the new areas had a very positive start.
Nordea and Elisa
signed an agreement, which states that Elisa acts
as Nordeas principal
provider of telecommunication services in
Finland. The agreement entails fixed
network voice communications,
mobile communications and data transfer services
throughout the
country.
The Ministry of Justice renewed its voice services
by outsourcing
the phone systems of 9 500 employees and over 350 offices
to
Elisas service production. The new Salmisaari Courthouse in
Ruoholahti,
Helsinki, was one of the principal targets of the
agreement.
Elisa is the
first commercial enterprise in Finland, which has
been registered as a CERT
organisation (Computer Emergency
Response Team) with 24-hour CERT operations.
A CERT team is a
group of experts specialised in information security
emergencies
and situations requiring immediate action.
Personnel
During
2004, the average number of personnel at Elisa was 5 590
(7 172). By the end
of 2004, the number of personnel was 5 376
(6 683).
31.12.2004 31.12.2003 Change
Mobile communications 1 477
1 678 -12 %
Fixed network 3 015 3 572
-16 %
Germany-based business - 426 -
Other
businesses 814 905 -10 %
Corporate functions
70 102 -31 %
Total 5 376
6 683 -20 %
Labour negotiations, initiated in October 2003,
were completed on
12 January 2004. As a result, the number of personnel was
reduced
by approximately 900 people.
On 22 April 2004, Elisas employees
established a personnel fund.
The fund includes approximately 4 000 members
with membership
based on employment. The fund is owned by the employees, and
they
administer the funds paid as rewards by the company and the
proceeds
received from the invested capital.
Investments
EUR million
1-12/2004 1-12/2003 Comparable
1-12/2003*
Investments
- in fixed assets 170 194 176
- in
shares 61 28 8
Total
231 222 184
Aforementioned investments
include GSM leasing
liability
20 28
buy-backs
*Exclusive of the
Germany-based business
Capital expenditures in the mobile business were EUR
83 million
(98) and EUR 83 million (74) in the fixed network business.
The
investments included GSM leasing liability buy-backs from telcos
for EUR
20 million (28).
Investments in shares were mainly the increase in Elisas
holdings
to 100 per cent of Yomi and Finnet International.
Financial
position
The group's financial position and liquidity strengthened
clearly
in 2004. This was particularly affected by positive performance,
the
divestment of the Germany-based business and the disposal of
real estate. The
January-December cash flow after investments
amounted to EUR 204 million
(105).
The disposal of the Germany-based business reduced the
group's
interest-bearing liabilities by EUR 65 million, and the
leasing
liabilities outside the balance sheet decreased by EUR 133
million.
During 2004, the groups net debt decreased by one-third
from the level in
2003, amounting to EUR 410 million (654) on 31
December 2004.
Elisa sold
its former main office real estate to Sponda. The
selling price was EUR 25.5
million and a capital gain of
approximately EUR 13 million was booked from the
transaction.
On 20 September 2004, Elisa completed a note exchange offer. As
a
consequence of this, the average maturity of loans was extended
from 3
years to 5.5 years. A new long-term benchmark bond was also
issued. Of the old
loans, 66.4 per cent were exchanged for notes
maturing on 22 September 2011.
All in all, the notes issued
amounted to EUR 260 010 000.
Financial key
indicators
EUR million 31.12.2004
31.12.2003
Net debt 410
654
Gearing, % 46.4 87.5
Equity
ratio, % 51.1 40.4
1-12/2004 2003
Cash flow after investments 204
105
Ratings per long-term loans
Credit rating agency
Rating Outlook
Moodys Investor Services Baa2
Stable
Standard & Poors BBB
Stable
Share
At the end of 2004, the company's total number of shares
was
141 989 109. The market capitalisation on 31 December 2004 stood
at EUR 1
682 million. In 2004, a total of 121.4 million company
shares were traded on
the Helsinki Stock Exchange for an aggregate
of EUR 1 380 million. The
exchange was 88.3 per cent of the number
of shares in the market.
The
number of Elisas A warrants for the year 2000 was 3 600 000
and B warrants
for the year 2000 was 3 600 000. At the end of the
year, the market
capitalisation of the warrants amounted to EUR
0.3 million.
Treasury
shares
At the end of 2004, the total number of Elisa's shares owned by
the
subsidiaries was 210 672 (781 563 at the end of 2003). The
nominal value of
the shares totalled EUR 105 336, and their
proportion of the share capital and
voting rights was 0.15 per
cent.
During the period of 2-3 November 2004,
Yomi sold its 556 870
Elisa shares with a nominal value of EUR 278 435 in
total on the
Helsinki Stock Exchange. The sale price totalled EUR 6 388
573.55,
on average EUR 11.47 per share. The transaction related to
the
restructuring of Yomi's balance sheet.
Moreover, the Elisa Group
Pension Fund owned 202 263 Elisa shares
(722 363 at the end of 2003) at
year-end.
Research and Development
In 2004, the group invested EUR 17
million (24) in research and
development. Important research trends were IP
technologies, the
end-users perspective, and the evolution of wireless
equipment.
Customer-centred R&D is of key importance in developing
new
services.
Shifting to IFRS reporting
Elisa will adopt International
Financial Reporting Standards
(IFRS) at the beginning of 2005. The first
interim report
conforming to IFRS will be for the period of January-March
2005.
On 14 February 2005, Elisa will publish a release on the effects
of
shifting to IFRS.
The Board of Directors authorisations
On 31 March
2004, the Annual General Meeting authorised the Board
of Directors to decide
on increasing the company's share capital
through one or more new issues,
taking a convertible bond and/or
granting warrants, so that in a new issue the
subscription of new
shares in exchange for the convertible bonds and pursuant
to
warrants, a maximum aggregate of 27.6 million of the companys
shares can
be issued and the companys share capital can be
increased by a maximum of EUR
13.8 million in total. The
authorisation is valid for one year from the Annual
General
Meeting. The pre-emption rights of shareholders may be waived
by
means of this authorisation if there is an important financial
reason for
doing so.
The companys Board of Directors has no valid authorisation
to
acquire or assign treasury shares.
Private offering
On 28 March 2004,
the Boards of Directors of Elisa and Yomi signed
a merger plan, which was
approved by an extraordinary meeting of
Yomi on 27 May 2004. According to the
plan, Yomi merged with Elisa
on 31 December 2004.
As a merger
consideration, Yomis shareholders received 0.5654 of
an Elisa share for each
Yomi share. All in all 3 977 352 new Elisa
shares were given as merger
consideration. The shares were entered
in the Trade Register on 31 December
2004, whereupon they received
full shareholder rights. These shares entitle
their holders to a
dividend for the financial year ending on 31 December 2004.
Due to
this share issue, the companys share capital increased by EUR
1 988
676. After the share issue, the companys shares amounted to
141 989 109 and
the share capital entered in the Trade Register
increased to EUR 70 994
554.50.
Major legal issues
Processes pending in regard to Elisa
Matkapuhelinpalvelut Oy
(formerly known as Oy Radiolinja Ab) are the action
for annulment
of the decision made at the spring 2000 shareholders meeting
to
increase the share capital, an appeal against the resolution by
Helsinki
District Court to dismiss the action (with which Oy
Multiclearing Ltd demands
increasing the redemption price of 255
shares from EUR 7 904.83 to
approximately EUR 50 000), plus an
action for annulment demanding the
cancellation of the merger
decision made at the shareholders meeting in
December 2003.
Processes relating to the merger of Yomi and Elisa are the
request
of shareholders who oppose the merger decision on the
redemption
price of approx. 636 000 shares, and an appeal against a
decision
by Turku Administrative Court, in which the Administrative
Court
dismissed the request for a special audit.
TeliaSonera Finland Oyj is
demanding EUR 13.2 million in
compensation from Elisa Matkapuhelinpalvelut Oy
for patent
infringement and damages. It also requests that using the
system
pursuant to the alleged patent must be prohibited. The patent
dispute
relates to the implementation of Elisa Heimopalvelu.
Elisa denies the patent
infringement allegations.
On 2 November 2004, the Finnish Communications
Regulatory
Authority (Ficora) initiated an investigation on the pricing
of
Elisa Matkapuhelinpalvelut Oys terminating traffic.
Elisa
Matkapuhelinpalvelut Oy has forwarded clarifications to Ficora.
The
matter is still pending.
Events after the financial period
On 18 January
2005, Elisa and IBM signed a letter of intent to
concentrate Elisa's
application management services in IBM. The
seven-year agreement will come
into force on 1 March 2005. On that
date, 150 employees from Elisa will join
IBM as established
employees.
Outlook
The competition in the
telecommunications market in Finland is
envisaged to remain tight. It is
estimated that usage of both the
mobile and fixed network products will
increase. Elisa aims to
strengthen its market position.
Elisas revenue for
2005 is estimated to increase slightly. Due to
the implemented and ongoing
revamping of operations, the companys
competitive edge will continue to
improve and profitability will
remain good. The comparable EBITDA and EBIT for
the first half
of the year is estimated to remain at the same level as in
the
fourth quarter of 2004. Capital expenditure will amount to 15 per
cent of
the revenue at most, and the cash flow will continue to be
clearly
positive.
THE BOARD OF DIRECTORS
ELISA CORPORATION
FINANCIAL
STATEMENTS 1 JANUARY-31 DECEMBER 2004
(eur million)
(Figures are not
audited)
CONSOLIDATED INCOME STATEMENT
Oct- Oct- Jan- Jan-
Dec Dec Dec Dec
2004 2003 2004 2003
Revenue 350,8
391,0 1 356,0 1 538,2
Other operating income 19,9 12,8
30,9 33,9
Operating expenses -257,2 -308,0 -954,7 -1
187,4
Depreciation and value
adjustments:
On fixed assets
-48,2 -75,6 -195,5 -273,2
On Corporation's goodwill -10,8
-103,2 -43,3 -145,1
EBIT 54,5 -83,0
193,4 -33,6
Financial income and expenses:
Share of associated
companies'
profit 1,5 0,3 0,7
-0,3
Other financial income and
expenses -5,0
-10,6 -27,9 -39,7
Profit before extraordinary items 51,0 -93,3
166,2 -73,6
Extraordinary items
Profit after extraordinary items 51,0
-93,3 166,2 -73,6
Income taxes -12,6 47,0
-52,2 59,7
Minority interest -2,7 -0,5 -7,4
-2,6
Net profit 35,7 -46,8 106,6
-16,5
CONSOLIDATED BALANCE SHEET 31 Dec 31 Dec
2004 2003
Fixed
assets
Intangible assets 62,5
64,2
Consolidated goodwill 440,6
459,5
Tangible assets 649,9
856,4
Share in associated companies 16,2
20,1
Other investments 12,5 12,0
1 181,7 1 412,2
Current
assets
Inventories 15,1
15,9
Deferred tax receivable 13,5
81,9
Receivables 368,0
352,4
Marketable securities 96,1 6,5
Cash
in hand and in banks 66,8 60,8
559,5 517,5
Total assets
1 741,2 1 929,7
Shareholders' equity
Share capital
71,0 69,0
Share premium account
561,8 516,7
Contingency fund
3,4 3,4
Retained earnings
108,2 126,5
Net profit 106,6
-16,5
851,0
699,1
Minority interests 33,6
77,3
Provisions for liabilities and charges 17,1
51,6
Liabilities
Long-term creditors 565,5
616,5
Short-term creditors 274,0 485,2
839,5 1 101,7
Total
shareholders' equity and liabilities 1 741,2 1 929,7
Items presented
in the tables for each row have
been rounded.
CONSOLIDATED CASH FLOW
STATEMENT 1)
(eur million)
Jan- Jan-
Dec
Dec
2004 2003
cash
inflow from operating activities
Profit before extraordinary items
166,2 -73,6
Adjustments:
Depreciation and value adjustments
238,8 418,3
Other financial income and expenses
27,2 39,6
Provisions for liabilities and charges -23,3
-4,3
Sales profits from the disposal of fixed assets -16,6 -2,0
Sales
profits from business operations and shares -5,6 -1,3
Other adjustments
0,3 -0,6
Cash inflow before working
capital 387,0 376,1
Change in working capital
4,9 -16,0
Cash inflow before taxes and financials
391,9 360,1
Received dividens and intrests and intrest paid -42,9
-40,7
Taxes paid -16,0
-14,6
Free funds from operations 333,0
304,8
Cash flow in investements
Investments in fixed assets
-170,1 -193,7
Disposal of fixed assets 36,6
5,0
Investments in shares and other investments -10,4
-26,9
Disposal of shares and other investments 12,0
15,2
Disposal of business operations 2,8 1,0
Cash
flow in investments -129,1 -199,4
Cash flow
after investments 203,9 105,4
Cash flow in
financing
Sales of treasury shares 6,4
Change in
interest-bearing receivables 24,3 -17,6
Change in long-term
loans -9,1 -96,5
Change in short-term loans
-116,9 12,0
Dividends paid
-13,0 -1,8
Cash flow in financing -108,3
-104,0
Change in financial assets 95,6
1,4
Financial assets at the beginning of
the financial period
67,3 65,9
Financial assets at the end of
the financial
period 162,9 67,3
1) Consolidated cash
flow statement has been
regrouped from the beginning of
2004.
LIABILITIES
31 Dec 31 Dec
(eur million)
2004 2003
Mortgages, pledges and
guarantees
Mortgages
For own and group companies 27,6
77,0
Pledges given
Pledges given as surety
0,2 23,7
Guarantees given
For others
11,0
Mortgages, pledges and guarantees total 27,8
111,6
Derivative contracts
Forward contracts and swap agreements
Market value of underlying security 13,5 14,2
Market
value 1,3 1,7
Leasing contracts
and
other commitments
Leasing commitments 23,6
35,3
Repurchase commitments 4,6
2,7
Real estate leases 156,6 136,1
Lease
liabilities total 184,8 174,1
Leasing
commitments consists mainly from leases
of IT and office equipment and
cars.
Real estate leases consists both office and
technical
space.
Leasing and rental agreements of telecom networks
Fixed network
9,0 16,0
German business
132,8
Mobile network *)
29,8 55,4
Rental agreement liabilities, total
38,8 204,2
*) Added to this, a provision for the future
redemptions of GSM network financial agreements
Other commitments
9,1 6,0
Lease-leaseback agreement (QTE
facility)
Termination risk 22,8
26,8
Total value of the arrangement 149,8
160,7
KEY FIGURES
(eur million)
Oct- Oct- Jan- Jan-
Dec Dec Dec Dec
2004 2003 2004 2003
Earnings/share (EPS), EUR 0,26
-0,34 0,78 -0,12
Shareholders' equity/share,
EUR
6,00 5,09
Gross investments in
fixed
assets 54,0 63,1 170,2 193,8
Gross investments
as
% of revenue 15,4 16,1 12,5
12,6
Purchase of shares 52,7 3,4 61,1
27,7
Non-interest-bearing debt 283,2
406,7
Average number of personnel 5 590 7
172
ADJUSTED GROUP KEY FIGURES
(exclusive of non-recurring
items)
Oct- Oct- Jan- Jan-
Dec Dec Dec Dec
2004 2003 2004 2003
Revenue
350,8 391,0 1 356,0 1 538,2
EBITDA 95,6
118,0 414,3 406,9
EBITDA, % 27,3 30,2
30,6 26,5
EBIT 36,6 33,3 175,5
82,7
EBIT, % 10,4 8,4 12,9
5,4
Profit before
extraordinary items 33,1 23,0 148,3
42,7
Adjusted key figures have
been calculated without
the following
non-recurring
items:
Restructuring costs and
pension provision
5,1 -22,2 5,1 -22,2
Capital gain of real estate
sales
12,8 12,8
Write-downs in Germany
-94,1 -94,1
Non-recurring items, total 17,9 -116,3
17,9 -116,3
Impact on EBITDA 17,9 -22,2 17,9
-22,2
Impact on EBIT 17,9 -116,3 17,9
-116,3
Impact on profit before
extraordinary items 17,9 -116,3
17,9 -116,3
KEY FIGURES BY SEGMENTS OCTOBER-DECEMBER/2004
1)
(eur million)
Revenue EBITDA
EBIT
Oct-Dec Oct-Dec Oct-Dec
2004 2003 2004 2003 2004 2003
Mobile
179,9 201,3 52,1 62,7 32,2 38,8
Amortisation
on
goodwill -9,6 -9,6
Total
179,9 201,3 52,1 62,7 22,6 29,2
Fixed
Network
162,0 171,4 41,8 29,2 16,1 -5,6
Amortisation
on
goodwill -0,9 0,8
Total
162,0 171,4 41,8 29,2 15,2
-4,8
Germany
Carrier-
business 32,6 2,2
-10,7
Amortisation
on goodwill
-91,6
Total 32,6 2,2
-102,3
Other
Companies
Comptel 17,9 13,3 5,1 2,6
4,6 1,9
Other
Companies 2) 15,5 10,6 1,0 1,0
-0,9 0,4
Amortisation
on goodwill
-0,4 -2,9
Total 33,4 23,9 6,1 3,6 3,3
-0,6
Unallocated
expenses 3) 2,6 0,9 13,5 -1,9
13,4 -4,5
Intra-segment
sales -27,1 -39,1
Corporation
total 350,8 391,0 113,5 95,8 54,5
-83,0
KEY FIGURES BY SEGMENTS (exclusive of non-recurring
items)
Segments
Revenue
EBITDA EBIT
Oct-Dec Oct-Dec
Oct-Dec
2004 2003 2004 2003 2004
2003
Mobile 179,9 201,3 52,1 64,3 22,6
30,8
Fixed
Network 162,0 171,4 41,8 42,3 15,2
8,3
Germany 32,6 2,2 -8,2
Other
Companies 33,4 23,9 6,1 3,6 3,3
-0,6
Unallocated
expenses 2,6 0,9 -4,4 5,6 -4,5
3,0
Intra-segment
sales -27,1 -39,1
Corporation
total 350,8 391,0 95,6 118,0
36,6 33,3
1) Business has been re-grouped to match new organisation.
Segment figures are not comparable with the previously reported
figures
for the business areas in earlier years.
2) Includes Yomi IT companies.
3)
Includes unallocated expenses of corporate headquarters and
administration.
KEY FIGURES BY SEGMENTS JANUARY-DECEMBER/2004 1)
(eur
million)
Revenue EBITDA EBIT
Jan-Dec Jan-Dec Jan-Dec
2004 2003 2004 2003 2004 2003
Mobile 712,8
757,3 218,7 210,0 139,1 110,9
Amortisation
on goodwill
-38,2 -38,2
Total 712,8 757,3
218,7 210,0 100,9 72,7
Fixed
Network 653,6 686,0
185,3 166,6 82,3 46,3
Amortisation
on goodwill
-3,5 -1,8
Total 653,6 686,0
185,3 166,6 78,8 44,5
Germany
Carrier-
business
134,1 3,8 -33,7
Amortisation
on goodwill
-100,0
Total 134,1
3,8 -133,7
Other
Companies
Comptel 59,7
54,0 16,7 9,5 14,5 6,6
Other
Companies 2) 48,7
41,7 1,2 -1,8 -4,8 -5,6
Amortisation
on goodwill
-1,7 -5,1
Total 108,4 95,7
17,9 7,7 8,0 -4,1
Unallocated
expenses 3) 2,4
2,2 10,3 -3,4 5,7 -13,0
Intra-segment
sales
-121,2 -137,1
Corporation
total 1 356,0 1 538,2 432,2
384,7 193,4 -33,6
KEY FIGURES BY SEGMENTS (exclusive on
non-recurring items)
Segments
Revenue EBITDA EBIT
Jan-Dec
Jan-Dec Jan-Dec
2004 2003 2004
2003 2004 2003
Mobile 712,8 757,3 218,7 211,6
100,9 74,3
Fixed
Network 653,6 686,0 185,3 179,7
78,8 57,6
Germany 134,1 3,8
-39,6
Other
Companies 108,4 95,7 17,9 7,7 8,0
-4,1
Unallocated
expenses 2,4 2,2 -7,6 4,1 -12,2
-5,5
Intra-segment
sales -121,2 -137,1
Corporation
total
1 356,0 1 538,2 414,3 406,9 175,5 82,7
1) Business has
been re-grouped to match new organisation.
Segment figures are not
comparable with the previously reported
figures for the business areas in
earlier years.
2) Includes Yomi IT companies.
3) Includes unallocated
expenses of corporate headquarters and
administration.
FINANCIAL
SITUATION
(eur million)
31 Dec 30 Sep 30 Jun
31 Mar 31 Dec
04 04 04 03
03
Long-term debt
Bonds and notes 481,4 484,9 471,5
471,5 471,5
Loans from the Pension funds 75,4 79,6 79,5 79,6
79,5
Loans from financial
institutions 1,9 3,3
3,5 3,4 57,8
Total 558,8 567,8 554,5
554,5 608,8
Short-term debt
Bonds and notes 0,0 100,0
100,0 100,0 100,0
Loans from financial
institutions
0,2 0,7 0,7 1,7 12,2
Committed credit line 1) 0,0
0,0 0,0 0,0 0,0
Commercial papers 2) 0,0 0,0 0,0
0,0 0,0
Others 14,4 3) 10,2 10,2 23,9
25,5
Total 14,6 111,0 110,9 125,6
137,7
Interest-bearing debt, total 573,4 678,8 665,5 680,1 746,6
Security deposits 0,0 0,0 0,0 25,2 24,5
Securities
96,1 128,7 114,0 24,3 6,5
Cash and bank
66,8 89,1 39,0 43,3 60,8
Interest-bearing receivables
162,9 217,8 153,0 92,8 91,8
Net debt 4) 410,5
461,0 512,5 587,3 654,8
1) The committed credit line is a joint EUR 170
million revolving
credit facility with eight banks, which Elisa
Corporation may
flexibly use on agreed pricing. The loan arrangement is
valid
until 16 June 2008.
2) Elisa Corporation has agreed on a joint
programme with seven
banks on issuing commercial papers. The arrangement
is not
committed. The maximum amount of the arrangement is EUR 150
million.
3) Redemption liability for minority shareholders in Elisa
Matkapuhelinpalvelut (EUR 2,6m) and in Yomi Oyj (EUR 4,3m)
and deposits in
the Financial Services Office (EUR 7,6m).
4) Net debt is interest-bearing debt
less cash and liquid
interest-bearing receivables.
Key Financial
Indicators 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec
04 04 04 04 03
Gearing 46,4%
56,0% 64,0% 75,9% 87,5%
Equity ratio 51,1% 45,5%
46,2% 44,4% 40,4%
Formulae for financial indicators
Gearing %
Interest-bearing debt-cash and bank-securities
---------------------------------------------x 100
Shareholders' equity + minority interests
Equity ratio %
Shareholders' equity + minority interests
-----------------------------------------x 100
Balance
sheet total - advances received
|