ELISA?S 2002 RESULT EXCLUSIVE OF NON-REC
ELISA COMMUNICATIONS CORPORATION STOCK EXCHANGE RELEASE
25 FEBRUARY 2003 AT 8.00am
ELISAS 2002 RESULT EXCLUSIVE OF NON-RECURRING ITEMS AMOUNTED TO
EUR -23 MILLION, Q4 IS IN LINE WITH Q3
The Elisa Groups revenue for the fourth quarter of 2002 amounted
to EUR 385 million (386). Key figures exclusive of non-recurring
items were as follows:
· EBITDA EUR 88 million (90)
· EBIT 10 million (13)
· result before extraordinary items and taxes EUR -3
million (-1).
Owing to the disposal of business operations and consolidation,
the Q4 figures are not fully comparable with those of the
previous year.
The Groups revenue for the whole year totalled EUR 1,563 million
(1,439). Key figures exclusive of non-recurring items were as
follows:
· EBITDA EUR 342 million (324)
· EBIT EUR 32 million (67)
· result before extraordinary items and taxes EUR -23
million (5).
The 2002 performance included EUR 154 of non-recurring expenses
and EUR 73 million of earnings. These items consisted of expense
bookings on GSM finance agreements and networks, as well as
disposals of business operations and real estates.
The key figures of the official financial statements were:
· EBITDA EUR 333 million (425)
· EBIT EUR -48 (108)
· result before extraordinary items and taxes EUR -103
million (46)
The Groups full-year cash flow after investments was EUR 89
million positive, and the financial position was stable.
The Groups net debt was reduced during the second half of the
year to EUR 757 million by the end of 2002. In 2002, operative
investments in fixed assets were EUR 218 million (324),
investments in shares EUR 16 million (242) and the repurchase of
GSM finance agreements approximately EUR 50 million (49). The
Groups equity ratio stood at 38 per cent (40).
The Board of Directors proposes that no dividend be distributed
for the year 2002.
CEO Matti Mattheiszen states that the result remained at an
unsatisfactory level although the other principal targets were
achieved. We have strongly adjusted costs, reduced the number of
personnel and also investments. Our domestic consolidation has
generated synergy, which will favourably reflect in the future
too. Other achievements in 2002 were the positive cash flow,
reduced net debt and keeping investments within the target ranges.
Radiolinja managed to increase its customer base by 41,000
subscribers in the last quarter. In Germany, we reported positive
EBITDA during the last quarter of 2002 as expected.ö
In the fixed network businesses Elisa strengthened its market
leadership in broadband subscriptions, whose number grew to
71,900. In the Elisa Mobile business area we diversified our
service portfolio by entering into a partnership with Vodafone
and by initiating GPRS and multimedia services.ö
We estimate that the year 2003 revenue will grow by three per
cent at the maximum. Based on the current market situation EBITDA
and result are expected to improve moderately. We will keep
investments at 15 per cent of revenue and seek for structural
solutions with regard to non-core business operations. We will
further reduce our net debt, and cash flow will remain positive.ö
The Germany-based business will register positive EBITDA in 2003,
and we expect EBIT to be positive during the first half of 2004,ö
says Mattheiszen.
The auditors report on the financial statements has not been
submitted yet. Elisa Communications Corporations Annual Report
will be published during week 13.
ELISA COMMUNICATIONS CORPORATION
Jyrki Antikainen, Vice President, Corporate Communications
Additional information:
Mr. Matti Mattheiszen, President & CEO, tel. +358 10 262 2917
Mr. Pekka Perttula, Executive Vice President & Group Spokesman,
tel. +358 50 555 0600
Mr. Vesa-Pekka Silaskivi, CFO, tel. +358 10 262 2606
Mr. Vesa Sahivirta, Vice President, Investor Relations,
tel. +358 10 262 3036
Appendix: Elisa Communications Corporations financial statements
for the year 2002
Distribution:
Helsinki Exchanges
Major media
FINANCIAL STATEMENTS FOR THE YEAR 2002
Market situation
Economic uncertainty and the indebtedness of telecom operators had
a considerable impact on the whole telecommunication sector in
2002. This situation was reflected by a number of foreign
operators also operating in Finland that went into liquidation. To
improve profitability in the slowdown of growth and the tightening
competition, costs and investments in the sector have been cut.
Competitive edge and growth have been sought, through corporate
transactions and cooperation agreements.
Telecommunication competition in Finland was manifested by
extensive marketing of mobile and broadband subscriptions to new
customers. In addition, new technologies and services, such as
GPRS and multimedia messages (MMS), were introduced in 2002.
However, their influence on the Groups business has not yet been
significant.
The difficult market situation was also reflected in Elisa
Communications Corporation Groups performance for the year 2002,
which did not meet its objectives.
Revenue
The Groups year-on-year revenue grew by 8.6 per cent, amounting
to EUR 1,563 million (1,439). Owing to the disposals of business
operations (inter alia directory and installation businesses) and
corporate acquisitions (such as Tropolys in 2002, Soon and Yomi
in 2001), the revenue figures are not comparable with those of
the previous year.
Performance
The Groups 2002 EBIT exclusive of non-recurring items amounted to
EUR 32 million (67). Non-recurring items affecting the EBIT were:
· the expense booking of EUR 77 million for the leasing
liability of finance agreements concerning the GSM network
· additional depreciation of EUR 51 million on the GSM
networks,
· expense booking of EUR 14 million for Germany-based
business, and
· other non-recurring expense bookings of EUR 12 million.
The (reported) Group EBIT in accordance with the financial
statements for the year 2002 was EUR -48 million (108).
EBIT for the year 2002 included a total of EUR 73 million (104)
sales profits from shares, business operations and real estates.
During 2002, installation business of Elisa Instalia Ltd and
directory businesses of Soon Com Ltd, Yomi Plc and Riihimäen
Puhelin Oy were divested.
Owing mainly to the decrease in investments profits, pension fund
contributions in 2002 were approximately EUR 10 million higher
than in the previous year. The Elisa Groups pension liabilities
are fully covered.
The Groups planned depreciation and value adjustments on fixed
assets totalled EUR 255 million (213). Non-recurring depreciation
of EUR 67 million (59) in total was also booked. Additional
depreciation was mainly set against the GSM networks. EUR 59
million (45) was booked as depreciation on the subsidiaries
consolidated goodwill. The sum included EUR 4 million value
adjustments written down for subsidiaries in Germany.
The Groups goodwill resulting from the acquisition of
subsidiaries amounted to EUR 583 million at the end of the period
under review (EUR 588 million at the end of 2001). In early 2002,
the associated company Tropolys GmbH was converted into a
subsidiary chiefly through an exchange of shares. As a
consequence of this, the Group goodwill to be presented in the
consolidated financial statements grew by around EUR 50 million.
The Groups share of associated companies results was EUR -5
million (-14).
The Groups financial income and expenses in 2002 totalled
EUR -50 million (-48).
On the basis of the expense booking on the GSM network leasing
liability, a deferred tax receivable of EUR 22 million was
recorded. No deferred tax receivables have been assigned for the
losses incurred by German subsidiaries and associated companies.
The corporate taxes for the year 2002 amounted to EUR +3 million
(-42).
The reported result for the year 2002:
· The Group profit for 2002 after taxes and minority
interest amounted to EUR 71 million (1).
· By the end of the year, the Groups earnings per share
stood at EUR 0.54 (0.01) and shareholders equity per
share was EUR 5.21 (5.67).
Elisa Mobile business area
In 2002, the Elisa Mobile business area was affected by the
tightening price competition and the subsequent price erosion, as
well as the departure of Telia Mobile Finlands subscriptions
from Radiolinjas network in Q2. Customer retention was clearly
more intensive than in 2001 and the marketing and sales expenses
of the subscription sales grew.
Elisa Mobiles key figures for 2002 were as follows:
· revenue EUR 739 million (727)
· EBITDA exclusive of non-recurring items EUR 194 million
(197)
· EBIT exclusive of non-recurring items EUR 60 million
(76).
Leasing liability of EUR 77 million relating to the GSM networks
finance agreements was booked as an expense during the third
quarter. In addition, a decision was made to shorten depreciation
periods for the investments in new radio networks and their
related software by approximately two years, as of the beginning
of 2003.
At the end of December 2002, Radiolinjas network in Finland had
1,342,417 subscriptions (1,356,204). Owing to the jettisoning of
Telias post-paid subscriptions, the number of subscriptions by
the end of Q3 amounted to 1,301,621. However, the highly
successful sales campaign by the end of the year increased the
number by 41,000 subscriptions.
In 2002, subscriptions of Radiolinjas service operator in
Finland:
· annualised churn for the review period was 15.7 per cent,
(14.3), and
· ARPU (average revenue per subscription) amounted to EUR
42.2 (43.5) a month
· the share of added value services from the revenue was
12 per cent (12).
During the period under review, Radiolinja concluded 23 new GSM
roaming agreements. These agreements now cover 111 countries and
234 mobile networks. A total of 44 GPRS roaming agreements have
been signed.
In early 2002, Radiolinja signed a cooperation agreement with
Vodafone, the largest mobile operator in the world, to provide
diverse mobile services to its customers abroad. Benefiting from
this cooperation and building new products has been one of the
most important events during 2002.
Radiolinja Eesti, Radiolinjas subsidiary operating in Estonia,
reported the following figures for 2002:
· revenue of EUR 55 million (40), (A growth of 20 per cent
from the corresponding period of the previous year.)
· EBIT EUR 7 million (4)
· 155,500 subscriptions (146,600) at the end of December.
Fixed network business (ElisaCom and Elisa Networks business
areas)
The competitive edge of the fixed network business was enhanced
by streamlining business structures and divesting non-core
businesses.
Fixed network business in 2002:
· revenue amounted to EUR 735 million (658)
· EBITDA exclusive of non-recurring items was EUR 213
million (200)
· EBIT exclusive of non-recurring items amounted to EUR 101
million (95).
The fixed network business comprises the service business of
ElisaCom and the network business of Elisa Networks, both
nationwide companies. Owing to the incorporations, divestments
and consolidation of business operations, the figures for the
fixed network business are not comparable with those of the
previous year.
The number of broadband subscriptions continued to soar, and
ElisaCom maintained its market leadership in 2002. ElisaCom was
highly successful in implementing and outsourcing
telecommunication solutions of corporate customers and local
government. The volume of call traffic and traditional telephone
subscriptions in the fixed network decreased, as the customers
use of the Internet shifted to fixed-price broadband
subscriptions and, with regard to voice traffic, to mobile
services.
The number of fixed subscriptions in the Groups networks at the
end of 2002 was 1.18 million (1.19). The number of broadband
subscriptions was approximately 71,900 (27,900). The Group with
its associated companies had around 160,900 cable TV
subscriptions at the end of 2002.
The focus activities of Elisa Networks network business in 2002
were to meet the demand for broadband connections and
subscriptions, cost-efficiency and to manage the total level of
investments. Both were accelerated by the consolidation of
domestic network business and divestment of installation
businesses.
Germany-based business (Elisa Kommunikation business area)
The number of customers in Germany-based business grew despite
weakened German economy. Elisa Kommunikation GmbH reported
positive EBITDA for the last quarter of 2002, and EBITDA adjusted
with non-recurring items amounted to EUR 1 million.
In 2002, Elisa Kommunikation GmbHs:
· revenue amounted to EUR 118 million (54)
· EBITDA was EUR -27 million (-30)
· EBIT totalled EUR -73 million (-56)
· net result was EUR -55 million (-69).
Owing first and foremost to the consolidation of Tropolys GmbH,
the figures are not comparable.
Elisas business operations in Germany focused on improving
profitability and efficiency of investments in 2002.
The consolidation of Tropolys GmbH as a subsidiary increased the
revenue intrinsically. Tropolys GmbH became Elisa Kommunikations
subsidiary at the beginning of 2002, which was a major strategic
structural change in the Groups cluster of companies in Germany.
The acquisition of the controlling interest was mainly realised
through share exchanges. Mäkitorppa GmbH along with its outlets
was sold and the retailing of mobile phones and subscriptions was
shut down.
Other companies
Comptel Corporation disclosed its financial statements on 14
February 2003 and Yomi Plc on 20 February 2003. The key figures of
the companies were:
Comptel Corporation
· revenue EUR 49 million (61)
· EBIT EUR -7 million (14).
Yomi Plc
· revenue EUR 58 million (58)
· EBIT EUR 4 million (10).
Yomis performance was affected by approximately EUR 9 million
sales profits from the disposal of directory and security business
operations and by non-recurring depreciation of EUR 4 million,
which related to product development.
Research and development
The Group invested EUR 36 million (36) in research and development
in 2002.
The primary focus areas of the R&D activities in the Research
Center were service platform technology, data security of
information technology, new IP-based network technologies and
services, wireless and broadband technologies, and customer-
centred research.
Changes in Group structure
Elisa Communications Corporations service operator, ElisaCom
Ltd., started operations on 1 January 2002.
Soon Communications Plcs business operations were incorporated
on 1 January 2002 into the network operator Soon Net Ltd and the
service operator Soon Com Ltd. Soon Communications Plc was merged
with and into Elisa Communications Corporation on 31 December
2002.
On 7 January 2002, Yomi Plc acquired Indata Oy through an exchange
of shares, and Votek Oy in part in cash and in part through a
private offering. As a result of these measures, Elisa
Communications Group's holding in Yomi Plc decreased from 53.13
per cent to 51.46 per cent.
Radiolinja incorporated its network and mobile infra services.
Radiolinja Origo Oy (network) and Radiolinja Aava Oy (mobile
infra) began trading on 1 February 2002.
In early 2002, Tropolys GmbH was converted into a subsidiary
through an exchange of shares in principal. Elisa Communications
Group has a 65.9 per cent holding in Tropolys.
During 2002, the group companies providing security construction
automation and energy management systems were concentrated on
Estera Oy. These companies were Computec Oy, Elektroniikkatyö Oy
and security business operations of Yomi and Elisa Solutions.
The installation company Elisa Instalia Ltds business was sold
to Flextronics Network Services Finland Oy on 3 September 2002
in accordance with the agreement signed in June. The disposal
price was approximately EUR 37 million.
On 12 September 2002, Yomi sold its directory business to Fonecta
Oy for approximately EUR 8 million, and on 29 November 2002, Soon
Com Ltd sold its directory business to Oy Eniro Finland Ab for
some EUR 24 million.
Oy Extel Ab and Oy Älytalo Ab were merged with and into Elisa
Communications Corporation in September.
Lounet Oy was merged with Lounais-Suomen Puhelin Oy at the end of
2002. After the merger, the Groups holding in the new company
named Lounet Oy stood at 50.2 per cent.
Personnel
By the end of 2002, the group companies employed 7,368 people
(8,180). During 2002, an average of 8,115 people (7,783) worked in
the Group.
The number of personnel per Group and business areas were as
follows:
· 337 employees in the parent company Elisa Communications
Corporation
· 1,741 employees in the Elisa Mobile business area
· 2,542 employees in the ElisaCom business area
· 940 employees in the Elisa Networks business area
· 675 employees in Elisa Kommunikation business area
· 1,133 employees in other companies.
During 2002, the Group conducted collaboration negotiations and
rationalisation at Elisa Communications Corporation, ElisaCom
Ltd., Elisa Networks Ltd., Comptel Corporation, Yomi Plc and in
Germany-based business operations. With these measures, the Group
managed to reduce the number of personnel by around 300.
The Group will publish a separate personnel review for the year
2002.
Investments
The Groups gross investments in fixed assets in January-December
amounted to EUR 269 million (373) and acquisition of shares to 16
million (242).
Investments in fixed assets amounted to:
· EUR 138 million in Elisa Mobile,
· EUR 106 million in the fixed network companies, and
· EUR 25 million in Germany-based business.
Elisa Mobiles investments contain repurchases of Radiolinja GSM
finance agreements from telcos for approximately EUR 50 million.
Financial position
The Groups financial position and liquidity remained stable.
Currently, the Group has a credit rating of A3 (review for
downgrade) for long-term financing by Moody´s, and A- (negative
outlook) for long-term financing and A-2 for short-term financing
by Standard & Poors.
The Groups net debt stood at EUR 757 million by the end of the
review period. The Groups equity ratio decreased to 38 per cent
(40) owing to the losses incurred in 2002. More detailed
information on the financial position is available in the table
attached.
Own shares
The total number of Elisa Communications Corporations A Shares
owned by the subsidiaries was 781,563 by the end of the year. The
par value of the shares totalled EUR 390,781.50 and their
proportion of the share capital and votes was 0.57 per cent. The
book value of these company shares has been deducted from the
distributable assets of the Group.
Moreover, the Elisa Group Pension Fund owned 1,575,463 A shares.
On 5 November 2002, Elisa Communications Corporations subsidiary
Soon Communications Plc sold its 1,714,163 Elisa Communications
Corporation A Shares through the stock exchange to the Elisa Group
Pension Fund on the basis of exemption from funds. The deal price
was EUR 9,530,746.28 in total, or EUR 5.56 per share. Soon
Communications booked a sales loss of EUR 57 million for the
transaction. This trading of own shares was entered in
Shareholders equity in the balance sheet, and the transaction
had no impact on the Groups earnings.
The aggregate nominal value of the shares sold was EUR 857,081.50.
The shares attributed for 1.24 per cent of Elisa Communications
Corporations share capital and votes. Stock trading had no
substantial effect on the allocation of ownership and votes within
the company.
The companys Board of Directors has no valid authorization to
acquire or assign own shares.
Shares
The A Share of Elisa Communications Corporation closed at EUR 5.72
on 30 December 2002. The highest quotation in 2002 was EUR 15.50,
and the lowest EUR 4.46. The average rate was EUR 8.21.
As of 30 December 2002, the companys aggregate number of shares
was 138,011,757 and market capitalisation was EUR 785 million.
During the period from 1 January 2002 to 30 December 2002, a total
of 66.1 million A Shares of the company were exchanged on the
Helsinki Exchanges for an aggregate value of EUR 543 million. The
exchange was 48.6 per cent of the number of A Shares on the
market.
The number of Elisa Communications Corporations A share options
for the year 2000 is 3,600,000. Between 1 July 2002 and 30
December 2002, the total number of A share options traded on the
Helsinki Exchanges was 156,550 at a total price of EUR 26,707. The
average rate of the A share options was EUR 0.17. The highest
quotation of the A share options in the January-December period
was EUR 0.30, and the lowest EUR 0.05. The closing rate of the A
share option was EUR 0.25
Annual General Meeting on 4 April 2002
Elisa Communications Corporations Annual General Meeting decided,
in accordance with the proposal of the Board of Directors that no
dividend be paid for 2001. The Annual General Meeting confirmed
the parent companys income statement and balance sheet, and the
consolidated income statement and the balance sheet. The members
of the Board and the CEO were discharged from liability for 2001.
The confirmed number of the members of the company's Board of
Directors was eight. Ossi Virolainen, Riitta Backas and, as a new
member, Honorary Mining Counsellor Jere Lahti, CEO of S Group
Cooperative Societies, were appointed for the next three-year
term. Keijo Suila, Matti Aura, Arto Ihto, Pekka Ketonen and Linus
Torvalds, who were not to retire by rotation in this AGM,
continue as members of the Board. PricewaterhouseCoopers Oy
(authorized public accountants, with APA Henrik Sormunen as the
responsible auditor), and Leo Laitinmäki (APA) were appointed the
company's auditors. Jaana Salmi (APA) was appointed deputy
auditor.
The Annual General Meeting approved the proposal of the Board of
Directors to authorize the Board of Directors within one year
from the Annual General Meeting to decide on increasing the
company's share capital. The board was to achieve this through
one or more new issues, one or more convertible bonds and/or
warrants so that in a new issue or when issuing convertible bonds
or warrants, a maximum aggregate of 27.6 million of the company's
A Shares can be issued for subscription, and the company's share
capital can be increased by a maximum of EUR 13,800,000 in total.
The authorisations have not been used so far.
At the same time, the Annual General Meeting cancelled the
authorisation to raise the share capital, which was valid until
20 April 2002, for the part that had not been used.
On 2 May 2002, the Group's Board of Directors was constituted.
Keijo Suila, President and CEO of Finnair, will continue as
chairman, and Ossi Virolainen, CEO of AvestaPolarit Oyj Abp, as
deputy chairman of the Board of Directors.
Major legal issues
With reference to Section 14 Paragraph 19 of the Finnish
Companies Act regarding the redemption procedure on Oy Radiolinja
Ab's minority shares, the title to the shares to be redeemed was
transferred to Elisa Communications Corporation after it gave the
required security on 27 February 2001. In its ruling on 29 May
2001 the court of arbitration confirmed the redemption right and
decided the redemption price be FIM 47,000 per share (EUR 7,905).
The matter is pending in the local court and concerns 4,706
shares.
Ten shareholders of Radiolinja's former series L Shares have
filed an action for annulment against Radiolinja in respect of
the decisions made at the Annual General Meeting of 3 April 2000.
The ruling on 6 September 2001 by Helsinki District Court was in
favour for Radiolinja. The plaintiffs have appealed against the
decision to the court of appeal. The court announced its decision
after the period under review, on 11 February 2003, and left the
ruling of the district court unchanged. The plaintiffs' are
entitled to a leave to appeal in the Supreme Court.
A court of arbitration appointed by the Central Chamber of
Commerce decided on 27 June 2002, to set the redemption price of
Elisa Communications Corporation's subsidiary Soon Communications
Plc at EUR 7.86 per share. The decision is now valid and the
process has ended.
The Finnish Competition Council ruled on 11 December 2001 that on
basis of the complaint by Telia Mobile AB filed with the Finnish
Competition Authorities in 1998, Radiolinja and Sonera have no
joint dominant market position in the network market of mobile
communications. Telia has appealed against the decision to the
Supreme Court.
On 9 July 2002, Elisa Communications Corporation received a
subpoena, in which Jippii Group Oyj made a claim against Elisa
Communications Corporation for damages concerning the terminating
fees of EUR 5.8 million in total. The matter is pending in
Helsinki District Court.
Radiolinja Origo Oy demands compensation for damages in the court
of arbitration from Telia Mobile AB's branch operating in Finland
for violating a service operator agreement.
Within the framework of their business operations, companies
belonging to the Group are also parties to other disputes and
legal proceedings, as well as to procedures by the authorities,
the outcomes of which are not regarded to have a substantial
effect on the Group's financial position or performance.
Events after the period under review
On 1 January 2003, Soon Com Ltd became ElisaCom Ltd.s fully owned
subsidiary.
On 9 January 2003, Moody´s announced to place the A3 long-term
ratings of Elisa Group on review for possible downgrade. The
decision is based on the rating agencys concern over the
instabilities and low growth prospects of the telecom industry,
which could negatively affect Elisa´s business and profit
performance.
On 22 January 2003, the Board of Directors decided to recommend to
the Annual General Meeting convening on 4 April 2003, that the
parent company Elisa Communications Corporation change its name to
Elisa Corporation.
On 19 February 2003, Fidelity International Limited announced that
both it and its subsidiaries share of Elisa Communications
Corporations share capital and votes had exceeded five (5) per
cent.
Future outlook
The world situation will reflect in uncertainties for demand for
telecom services.
The Board of Directors estimates the Group revenue, EBITDA and
result to grow moderately. The positive progress of EBITDA in the
Germany-based business will improve the Groups profitability.
Operative investments in relation to revenue will be limited to
not more than 15 per cent. The improved profitability and moderate
investment level will promote maintaining the Groups cash flow
positive and further reducing of net debt. Restructuring of
non-core businesses will continue.
Annual EBITDA of the Germany-based operations will be distinctly
positive in 2003. Because of the improving operative efficiency
and positive trend in the number of business customers, EBIT is
estimated to be in surplus in the first half of 2004.
ELISA COMMUNICATIONS GROUP
FINANCIAL STATEMENTS FOR 31 JANUARY - 31 DECEMBER 2002
Oct- Oct- Jan- Jan-
CONSOLIDATED INCOME STATEMENT Dec Dec Dec Dec
2002 2001 2002 2001
EUR million
Revenue 385 386 1 563 1 439
Other operating income 37 102 92 126
Operating expenses -304 -305 -1 322 -1 140
Depreciation and value adjustments:
On fixed assets -67 -115 -322 -272
On Group goodwill -12 -10 -59 -45
Operating profit 39 58 -48 108
Financial income and expenses:
Share of associated companies' profits -1 1 -5 -14
Other financial income and expenses -12 -15 -50 -48
Profit before extraordinary items 26 44 -103 46
Extraordinary items 3
Profit after extraordinary items 26 44 -100 46
Income taxes 3 -23 3 -42
Minority interest 6 -1 26 -3
Net profit 35 20 -71 1
CONSOLIDATED BALANCE SHEET 31.12. 31.12.
2002 2001
EUR million
Fixed assets
Intangible assets 77 75
Group goodwill 583 588
Tangible assets 962 928
Shares in associated companies 21 25
Other investments 13 74
1 656 1 690
Current assets
Inventories 21 27
Deferred tax receivable 14
Receivables 334 330
Marketable securities 2 4
Cash and bank 71 100
442 461
Total assets 2 098 2 151
Shareholders' equity
Share capital 69 69
Share premium account 517 517
Contingency fund 3 3
Retained earnings 198 180
Net profit -71 1
716 770
Minority interests 83 85
Provisions for liabilities and charges 71 1
Liabilities
Deferred tax liability 19
Long-term creditors 715 582
Short-term creditors 513 694
1 228 1 295
Total shareholders' equity and liabilities 2 098 2 151
Jan- Jan-
CONSOLIDATED CASH FLOW STATEMENT Dec Dec
2002 2001
EUR million
Cash inflow from operating activities
Net profit -71 1
Adjustments:
Depreciation and value adjustments 381 317
Reduction in value of investments 1
Sales profits from business operations -48 -61
Sales profits from the disposal of fixed assets
and shares -5 -11
Expense booking for GSM leasing liability 70
Other adjustments -21 30
Change in deferred tax liability/receivable -34 -24
Change in working capital and other items 32 4
376 255
Cash inflow from operating activities 305 256
Cash flow in investments
Investments in fixed assets -268 -373
Disposal of fixed assets 6 29
Investments in shares -7 -44
Disposal of shares and fixed assets 53 78
Other investments 0 -55
Cash flow in investments -216 -365
Cash flow after investments 89 -109
Cash flow in financing
Change in long-term loans 75 155
Change in short-term loans -209 32
Dividends paid -4 -14
Sale of own shares 18 8
Cash flow in financing -120 181
Change in financial assets -31 72
Financial assets at the beginning of
the financial period 104 32
Financial assets at the end of
the financial period 73 104
Oct- Oct- Jan- Jan-
Dec Dec Dec Dec
2002 2001 2002 2001
KEY FIGURES
Earnings per share (EPS), EUR 0,26 0,16 -0,54 0,01
Shareholders' equity/share, EUR .. .. 5,21 5,67
Gross investments
in fixed assets 81 71 269 373
Gross investments
as of % of revenue 21,0 18,3 17,2 26,0
Purchase of shares *) 5 43 16 242
*) Germany's 2002 share exchange
netted
Average number of personnel .. .. 8 115 7 783
LIABILITIES
Mortgages
For own loans 67 68
Deposits given as surety 10 38
Guarantees
For others 11 1
Leasing commitments 72 91
Repurchase commitments 3 6
Lease-leaseback agreement commitment
(QTE facility) 194 230
Other commitments 52 46
Total liabilities 409 480
Lease agreement liabilities outside the Group
on 31 December 2002 amounted to approximately
EUR 216 million (EUR 191 million at the end
of 2001).For the future redemption of the
relevant GSM network financial agreements,
obligatory reserve has been formed in the
balance sheet, which covers around
EUR 70 million of the aforementioned
lease agreement liability.
DERIVATIVE INSTRUMENTS
Nominal value
Exchange rate futures 13 6
Interest and currency swaps 8
Market value
Exchange rate futures 1 0
Interest and currency swaps 0 0
Oct- Oct- Jan- Jan-
ADJUSTED GROUP KEY FIGURES Dec Dec Dec Dec
(exclusive of non-recurring items) 2002 2001 2002 2001
EUR million
Revenue 385 386 1563 1439
EBITDA 88 90 342 324
EBITDA, % 22,8 23,2 21,9 22,5
EBIT 10 13 32 67
EBIT, % 2,6 3,4 2,0 4,6
Profit before extraordinary items -3 -1 -23 5
Adjusted key figures have been calculated
without the following non-recurring items:
Sales profits 29 93 73 104
Sanction fee to the Competition Council -4
Expense booking for
GSM network leasing liability -77
Writedowns of the GSM network -38 -51 -46
Writedowns of Cityphone and
submarine cable networks -2 -2 -8 -5
Other writedowns in Finland -4
Rundown costs of Mäkitorppa GmbH 1 -8
Other writedowns in Germany 1 -8 -5 -8
Non-recurring items, total 29 45 -80 41
Impact on EBITDA 30 93 -9 100
Impact on EBIT 29 45 -80 41
Impact on profit before
extraordinary items 29 45 -80 41
The Group's revenue, EBITDA and EBIT by business area (BA)
1 Jan - 31 Dec 2002
EUR million
Fixed network* Revenue EBITDA EBIT
1-12/02 1-12/01 1-12/02 1-12/01 1-12/02 1-12/01
Services 671 70 23
Network 314 204 131
Intra-BA sales -250
Group bookings
Total 735 658 274 262 154 152
*) Yomi's IT business and Soon's security business are included
under 'Other companies'Owing to corporate structural changes,
the figurdirectly comparable with those of the previous year.
Elisa Mobile Revenue EBITDA EBIT
1-12/02 1-12/01 1-12/02 1-12/01 1-12/02 1-12/01
Radiolinja
(operator business) 701 687 111 226 -38 72
Retail companies 64 55 6 -2 5 -7
Intra-BA sales -26 -15
Group bookings -35 -9
Total 739 727 117 224 -68 56
Germany* Revenue EBITDA EBIT
1-12/02 1-12/01 1-12/02 1-12/01 1-12/02 1-12/01
Carrier business 116 41 -20 -14 -63 -37
Mäkitorppa GmbH 2 13 -7 -16 -10 -19
Group bookings 3
Total 118 54 -27 -30 -73 -53
*) Shares of profits of German associated companies:
1-12/02 EUR -3 million ( -13).
Other companies Revenue EBITDA EBIT
1-12/02 1-12/01 1-12/02 1-12/01 1-12/02 1-12/01
Comptel 49 61 -3 17 -7 14
Other companies 45 21 0 1 -10 -1
Intra-BA sales -1
Group bookings -2 -6
Total 93 82 -5 18 -23 13
Group functions 37 15 -26 -49 -38 -60
Group, total 1563 1439 333 425 -48 108
Revenue, EBITDA and EBIT by business area (BA)
(exclusive of non-recurring items)
Business area (BA) Revenue EBITDA EBIT
1-12/02 1-12/01 1-12/02 1-12/01 1-12/02 1-12/01
Fixed network 735 658 213 200 101 95
Elisa Mobile 739 727 194 197 60 76
Germany 118 54 -21 -34 -59 -49
Other 130 97 -44 -39 -70 -55
Sales between BAs -159 -97
Group, total
(adjusted) 1563 1439 342 324 32 67
Financial situation as at December 31, 2002
EUR million 31.12.02 30.9.02 30.6.02 31.3.02 31.12.01
Long-term debts
Bonds and notes 572 472 472 423 423
Loans from
the Pension Funds 80 83 83 83 83
Loans from financial
institutions 54 38 38 68 65
Total 705 593 593 574 571
Short-term debts
Bonds and notes 52 52 152 153 153
Loans from financial
institutions 2 34 34 23 23
Committed
credit line 1) 40 50
Commercial
papers 2) 44 128 106 100 100
Others 28 3) 50 59 60 60 4)
Total 126 304 351 386 336
Interest-bearing
debt, total 831 897 944 960 907
Securities 3 3 3 5 4
Cash and bank 71 77 92 130 100
Interest-bearing
receivables, total 74 80 95 135 104
Net debt 5) 757 817 849 825 802
1) The committed credit line is a joint EUR 170 million
revolving credit facility with seven banks, which Elisa
Communications Corporation may flexibly use on agreed
pricing. The loan arrangement is valid until
November 26, 2003.
2) Elisa Communications Corporation has agreed on a joint
program with six banks on issuing commercial papers.
The arrangement is not committed. The maximum amount of
the arrangement is EUR 150 million.
3) Redemption liability of Oy Radiolinja Ab (EUR 16 million)
and personnel welfare office deposits (EUR 12 million).
4) The redemption liability of Soon Communications Oyj and
Oy Radiolinja Ab were (EUR 46 million)are booked as interest
bearing liability since 1.1.2002. At 31.12.2001 the redemption
liability was booked as non-interest-bearing liability. The
change in booking entry has been made to 2001 comparables.
5) Net debt is interest-bearing debt less interest-bearing
receivables.
Key financial
indicators 31.12.02 30.9.02 30.6.02 31.3.02 31.12.01 4)
Gearing 95% 105% 102% 94% 94%
Equity ratio 38% 35% 38% 38% 40%
