ELISA'S INTERIM REPORT FOR APRIL-JUNE 2006
ELISA CORPORATION STOCK EXCHANGE RELEASE 25 JULY AT 8.30 am
ELISA'S INTERIM REPORT FOR APRIL-JUNE 2006
- Excluding non-recurring items, the pre-tax profit improved
from EUR 26 million to EUR 40 million and the EBITDA from EUR 84
million to EUR 100 million
- The pre-tax profit amounted to EUR 35 million (113)
- Revenue increased by 14 per cent to stand at EUR 382 million
(336)
- Revenue per subscription (ARPU) in the mobile business
improved from EUR 28 in the first quarter to EUR 31
- Churn in mobile business decreased further to stand at 13 per
cent, compared with 19 per cent in the first quarter
- The introduction of new 3G service bundles contributed to an
increase in the number of mobile subscriptions
- The number of broadband subscriptions increased by
approximately 12,700 on the previous quarter
- The financial position remained stable: at the end of June,
equity ratio was 64 per cent (62 per cent at the end of 2005) and
net debt was EUR 381 million (293 at the end of 2005)
In April-June, Elisa's key indicators were as follows:
Income statement 4-6/2006 4-6/2005 1-12/2005
EUR million
Revenue 382 336 1,337
EBITDA 95 ¹) 170 ²) 446 ³)
EBIT 39 ¹) 118 ²) 233 ³)
Profit before taxes 35 ¹) 113 ²) 212 ³)
Earnings per share, EUR 0.16 ¹) 0.66 ²) 1.22 ³)
Capital expenditures 54 46 204
1) Income statement figures excluding non-recurring items
(restructuring provision EUR -5 million) EBITDA EUR 100 million,
EBIT EUR 44 million, profit before taxes EUR 40 million and
earnings per share EUR 0.19
2) Excluding non-recurring items: EBITDA EUR 84 million, EBIT EUR
32 million, profit before taxes EUR 26 million and earnings per
share EUR 0.15
3) Excluding non-recurring items: EBITDA EUR 346 million, EBIT EUR
133 million, profit before taxes EUR 112 million and earnings per
share EUR 0.61
Figures describing the financial position and cash flow:
Financial position 30.6.2006 30.6.2005 31.12.2005
Net debt 381 364 293
Equity ratio, % 64.1 55.0 61.7
Cash flow statement 4-6/2006 4-6/2005 1-12/2005
Cash flow after investments 29 136* 308
* Includes a total of EUR 104 million of compensations for damage
in interconnection traffic and sale income on shares and real
estate
CEO Veli-Matti Mattila:
3G service bundles popular use of services increasing
The 3G service bundles have been very popular and already account
for a significant number of new subscriptions. The reform has
already proven its necessity and value.
We estimate the number of 3G customers in Finland to exceed
150,000 at the moment. We believe the number will be 250,000 -
300,000 by the end of the year. This was also clearly the
intention of legislative authorities: to encourage people to
upgrade to handsets that meet the requirements of the information
society.
Customers subscribing to service bundles use new services more
than the average user. New handsets allow more versatile use of
services and, on the whole, the adoption of many new services.
Elisa achieved a successful performance in the second quarter. The
churn in mobile communications decreased significantly from 19 per
cent to 13 per cent, and the declining trend in the revenue per
subscription (ARPU) levelled off. Growth in the broadband market
is somewhat slower, and there Elisa retained its leading position.
We increased the speeds of broadband connections, thus offering
our customers more efficient data communications and increasingly
versatile services.
Interconnection traffic prices are of crucial importance to
operators. The current system with a range of different prices
distorts the conditions of competition. The system should be
developed to better take fair operating conditions into account."
ELISA CORPORATION
Vesa Sahivirta
Director, IR and Financial Communications
Further information:
Mr. Veli-Matti Mattila, President and CEO, tel. +358 10 262 2635
Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr. Vesa Sahivirta, Director, IR and Financial Communication,
tel. +358 10 262 3036
Distribution:
Helsinki Stock Exchange
Principal media
Interim report for January-June 2006
This interim report has been prepared in accordance with the IFRS
recognition and measurement principles. The information presented
in this interim report is unaudited.
Market situation
Allowed since 1 March, the new 3G service bundles have clearly
strengthened the service competition. The bundles, which offer new
services, have been highly popular. The number of mobile network
subscriptions showed a positive development, and usage of
subscriptions increased.
The fixed network business continued its earlier trend: the number
of broadband subscriptions continued to grow, while the number and
usage of traditional subscriptions decreased.
Revenue
EUR million 4-6/2006 4-6/2005 Change, %
Mobile communications 239 180 33
Fixed network 166 170 -2
Other businesses 0 10 -100
Inter-segment sales -23 -25 -8
Total 382 336 14
Elisa's revenue for April-June was up 14 per cent on last year.
The growth was positively affected by Elisa's acquisition of
Saunalahti's business and an increase in the sale of mobile
handsets.
Performance
EUR million 4-6/2006 4-6/2005 Change,%
Mobile communications
EBITDA 57 ¹) 74 ²) -23
EBITDA, % 24 41
EBIT 29 ¹) 52 ²) -44
Fixed network
EBITDA 39 ¹) 43 -9
EBITDA, % 24 25
EBIT 11 ¹) 17 -35
Other business and
corporate functions
EBITDA -1 53 ²)
EBIT -2 49 ²)
Group, total
EBITDA 95 ¹) 170 ²) -44
EBITDA, % 25 51
EBIT 39 ¹) 118 ²) -67
1) Figures excluding non-recurring items: mobile network: EBITDA
EUR 59 million, EBIT EUR 31 million; fixed network: EBITDA EUR 42
million and EBIT EUR 14 million; the group's EBITDA EUR 100
million and EBIT EUR 44 million
2) The figures excluding non-recurring items: mobile network:
EBITDA EUR 46 million, EBIT EUR 24 million; other business: EBITDA
EUR -5 million and EBIT EUR -9 million; the group's EBITDA EUR 84
million and EBIT EUR 32 million
Elisa's EBITDA excluding non-recurring items showed growth of 19
per cent on the corresponding period in 2005. This increase was
attributable to improved profitability and the synergy benefits
created by the acquisition of Saunalahti.
The groups other financial income and expenses totalled EUR -4
million (-6). Reduced financial expenses were mainly due to a
decrease in average net debt in the period under review.
Income taxes in the period under review amounted to EUR -7 million
(-18).
The groups April-June result after taxes amounted to EUR 28
million (95). The groups earnings per share (EPS) amounted to
EUR 0.16 (0.66). At the end of June, the group shareholders'
equity per share was EUR 7.71 (8.06 at the end of 2005).
Changes in corporate structure
In accordance with the terms of Elisa's Saunalahti deal set by the
Finnish Competition Authority, Saunalahti sold the Saunaverkko
network required for the implementation of broadband services and
its customer contracts in the Tampere, Jyväskylä and Riihimäki
regions. Saunalahti also sold the Saunaverkko network without
customer contracts in the Helsinki region.
On 29 May 2006, Elisa and Relacom Finland Oy signed an agreement
on the partial transfer of Elisa's field operations in the area of
customer installations and maintenance to Relacom. The business
transfer will take effect as of 1 September 2006. The agreement is
subject to the approval of the Finnish Competition Authority. The
companies also signed a letter of intent concerning the transfer
of Elisa's PBX installation teams in Uusimaa and Häme to Relacom.
In June, Elisa offered to buy all the shares in Lounet Oy, paying
EUR 1,310 per share certificate for 1,000 shares in Lounet Oy. In
addition, the General Meeting of Lounet Oy held on 19 June 2006
decided to pay a dividend of EUR 90.00 per each share certificate
for 2005. The total value of the tender following the payment of
dividends was approximately EUR 14 million. The tender offer began
on 21 June 2006 and ends on 18 August 2006.
Tikka Communications Oy and Jyväsviestintä Oy merged with Elisa as
of 1 July 2006.
Mobile communication business
Number of subscriptions 30.6.2006 30.6.2005 31.12.2005
Total number of subscriptions
(Finland and Estonia) 2,343,885 1,709,516 2,228,101
Total number of subscriptions
in Finland * 2,060,385 1,465,066 1,962,101
Subscriptions in Estonia 283,500 244,450 266,000
* Elisa's network operator in Finland
Operating figures in Finland 4-6/2006 4-6/2005 2005
Revenue/subscription**(ARPU), 31.3 33.8 32.5
Churn**, % 12.9 32.3 28.4
Usage, million minutes* 1,207 790 3,509
Usage,
min/subscription/month** 204 175 172
SMS, million msg* 288 171 827
SMS, msg/subscription/month** 49 37 38
Value-added services/revenue, % 17 15 16
* Elisa's network operator in Finland (2005 figures include some
Saunalahti subscriptions)
** Elisa's service operator in Finland (2005 figures exclude
Saunalahti)
Elisas network operator increased the number of its subscriptions
by some 595,300 subscriptions during the year. The increase was
markedly due to Saunalahti shifting its subscriptions to Elisas
network. The second-quarter increase was approximately 76,500
subscriptions.
The call minutes per subscription of Elisa's own service operator
rose by approximately 17 per cent and the number of SMS messages
increased by approximately 32 per cent on the corresponding period
in 2005. The call minutes of the network operator rose by 53 per
cent and SMS messages by 68 per cent. The increase was affected by
the additional traffic generated by Saunalahti.
Revenue per subscription (ARPU) decreased by approximately 7 per
cent on the comparison period. This was due to a fall in consumer
prices and interconnection fees in June 2005. The increased usage
per subscription failed to completely compensate for the decrease
due to price erosion. Compared with the previous quarter, revenue
per subscription was up 12 per cent, increasing from EUR 28 to EUR
31.
As of 1 June 2006, Saunalahti changed its mobile interconnection
fee to 8.4 cents per minute (previously 11 cents per minute),
which corresponds to Elisa's mobile interconnection fee. The
change is due to Saunalahti's operations being part of Elisa's
business operations.
In May, Elisa agreed on new mobile interconnection fees with
TeliaSonera Finland. As of 1 January 2007, Elisa will apply the
rate of 7.25 cents per minute and TeliaSonera Finland the rate of
6.6 cents per minute (6.8 cents per minute in 2006). Elisa's
current rate of 8.4 cents per minute will be valid until 31
December 2006.
In April, Elisa was the first operator in the Nordic region to
open its HSDPA network, tripling the connection speeds in the
mobile phone network. Elisa's customers can also use HSDPA abroad
when roaming within HSDPA network. Elisa's Vodafone partners
currently offer HSDPA networks in 11 countries.
In Finland, Elisa's 3G network covers 40 cities and towns and 10
holiday resorts, the total coverage being approximately 40 per
cent of the population.
Elisas Estonian subsidiary continued to grow. Revenue was EUR
25.8 million (22.1), EBITDA EUR 8.3 million (7.2) and EBIT EUR
5.9 million (4.9). The number of subscriptions increased by 16
per cent to 283,500 subscriptions at the end of June (244,450).
Fixed network business
Number of subscriptions 30.6.2006 30.6.2005 31.12.2005
Broadband subscriptions 472,532 308,183 420,465
ISDN channels 113,285 141,743 128,665
Cable TV subscriptions 220,253 204,528 214,054
Analogue and other
subscriptions 541,004 608,846 578,002
Subscriptions, total 1,347,074 1,263,300 1,341,186
The number of broadband subscriptions rose by 12,700 in the April-
June period, showing an increase of 53 per cent on the previous
year.
The number of traditional subscriptions continued to decrease
steadily as voice calls shifted to the mobile communication
network and data transfers to broadband subscriptions.
Elisa continued its investments targeted at increasing the speeds
of the fixed broadband network and enabling the company to offer
new services.
As of 1 July 2006, Elisa introduced a new pricing system
concerning the Elisa ADSL subscriptions. In Elisa's own ADSL
production, the fees for 256 kbit/s and 512 kbit/s speed
categories increased by three euros. Outside the Elisa Network the
monthly fee increased by five euros in all speed categories.
In May, Cisco Systems awarded Elisa the IP Communications
Specialization certificate for its role as an expert partner in IP-
based communications solutions. Elisa is the first Finnish
operator to receive this award. The certificate is granted to
selected partners for their excellent performance in the sale,
design, installation or maintenance of Cisco's IP-based
communications solution, or for their prominent role in innovative
projects.
Personnel
During April-June, the average number of personnel at Elisa was
4,264 (an average of 4,989 in 2005).
30.6.2006 30.6.2005 31.12.2005
Mobile communications 1,434 1,507 1,629
Fixed network 2,741 3,243 3,001
Other business operations - 166 -
Corporate functions 41 72 51
Total 4,216 4,988 4,681
In February, Elisa initiated statutory labour negotiations
concerning the reorganisation of the Business Customers unit. The
negotiations were concluded in April. The number of employees was
reduced by approximately 70 prior to the negotiations, followed by
a further reduction of 112 employees during and after the
negotiations.
The outsourcing of Elisa's field operations in the area of
customer installations and maintenance to Relacom as of 1
September 2006 affected a total of 281 employees in Uusimaa and
Häme. They transferred from Elisa to Relacom as established
employees.
According to the letter of intent signed by Elisa and Relacom Oy
on 29 May 2006, 42 members of Elisa's PBX installation teams in
Uusimaa and 17 in Häme will transfer to Relacom.
On 13 June 2006, Elisa and the Pretax Group (Pretax BSP Oy) signed
a letter of intent concerning the outsourcing of external
accounting processes related to Elisa's financial administration
to Pretax. According to the agreement, approximately 35 Elisa
employees will transfer to Pretax as established employees as of 1
September 2006.
Investments
EUR million 4-6/2006 4-6/2005 1-12/2005
Capital expenditures, of which 54 46 204
- mobile communication business 22 22 86
- GSM leasing liability buy-backs 0 0 4
- fixed network business 32 23 112
- others 0 1 2
Shares 1 31 415
- of which achieved through an
exchange of shares 361
Total 55 77 619
Financial position
Elisa's financial position and liquidity remained stable during
the second quarter. The group's April-June cash flow after
investments amounted to EUR 29 million (136).
Financial key indicators
EUR million 30.6.2006 30.6.2005 31.12.2005
Net debt 381 364 293
Gearing, % 29.5 36.2 21.7
Equity ratio, % 64.1 55.0 61.7
4-6/2006 4-6/2005 1-12/2005
Cash flow after investments 29 136 308
Valid financing arrangements
EUR million Maximum In use on
amount 30.6.2006
Committed credit line 170 0
Commercial paper programme 1) 150 35
EMTN programme 2) 1 000 336
1) The programme is not committed
2) European Medium Term Note programme, not committed.
Long-term credit ratings
Credit rating agency Rating Outlook
Moodys Investor Services Baa2 Stable
Standard & Poors BBB Negative
Share
At the end of June the company's total number of shares was
166,066,016 and its market capitalisation stood at EUR 2,471
million.
In April-June, a total of 64.9 million shares were traded on the
Helsinki Stock Exchange for an aggregate of EUR 1,033.8 million.
The exchange was 39.1 per cent of the number of shares on the
market.
Treasury shares
The Annual General Meeting held on 27 March 2006 authorised the
Board of Directors to acquire and assign treasury shares. The
authorisation has not been used. At the end of June, the total
companies consolidated in the Elisa Group's financial statements
held 125,000 Elisa Corporation shares (180,000 at the end of
2005). The nominal value of the shares totalled EUR 62,500, and
their proportion of the share capital and voting rights was 0.1
per cent.
Significant legal issues
Since the publication of Elisa's Annual Report 2005 and the
interim report for January-March, the following legal developments
concerning Elisa have taken place:
The Helsinki Court of Appeal issued a ruling in favour of Elisa
and dismissed the action for annulment of the decision to increase
the share capital made at the former Oy Radiolinja Ab's Annual
General Meeting in spring 2000. If the Court gives its permission,
the decision may be appealed to the Supreme Court.
On 8 May 2006, a court of arbitration appointed by the Central
Chamber of Commerce decided to set the redemption price of Tikka
Communications Oy, a subsidiary of Elisa Corporation, at EUR 1,940
per share. There were some 360 shares to be redeemed and thus the
redemption price for the remaining shares amounted to
approximately EUR 700,000. The redemption price and the 5.5 per
cent interest will be paid within three months.
On 9 May 2006, Elisa's subsidiary Saunalahti Group Oyj (formerly
Jippii Group) was informed that the prosecutor will propose that a
fine of EUR 800,000 be imposed on the company for suspected
securities market offences, along with a further unspecified
forfeiture.
On 16 May 2006, a court of arbitration appointed by the Central
Chamber of Commerce decided to set the redemption price of
Saunalahti Group Oyj, a subsidiary of Elisa Corporation, at EUR
2.56 per share. There are some 3.83 million shares in total to be
redeemed and thus the redemption price for the remaining shares
will amount to approximately EUR 9.8 million. The redemption price
and the 5.75 per cent interest calculated from 28 March 2006 will
be paid within three months.
The Finnish Communications Regulatory Authority has issued new
significant market power (SMP) decisions concerning
interconnection fees in mobile communications. Elisa's obligations
remain unchanged. The new decision also applies to Saunalahti's
pricing.
The Finnish Competition Authority is conducting an investigation
into Elisa concerning the pricing of broadband subscriptions in
2003-2006.
Events after the reporting period
Elisa launched its HSDPA network in Tallinn and Pärnu. The maximum
speed of the network is 1 Mbit/s. Elisa has updated its entire
current 3G network to HSDPA technology. Thus, the new speeds can
be utilised throughout Elisa's 3G network also in Finland.
Outlook for 2006
The outlook for 2006 remains unchanged.
Competition in the Finnish telecommunications market remains
challenging, while the focus is increasingly shifting to services.
The use of mobile communications and broadband products continues
to increase. Elisa's aim is to further reinforce its position as
the leading service supplier.
The group's revenue is expected to increase clearly on the
previous year. The growth will be partially attributable to an
increase in handset sales. Elisa expects to see an improvement in
EBITDA and EBIT excluding non-recurring items in 2006. This will
be due to e.g. the synergy benefits created by the Saunalahti deal
and Elisa's rationalisation procedures.
Capital expenditures during the year are estimated to total 13 to
15 per cent of the revenue, and cash flow will remain clearly
positive. Certain non-recurring items due to IT and production
system reforms, which will support the "One Elisa" operational
model, are scheduled for 2006.
BOARD OF DIRECTORS
Figures are not audited.
CONSOLIDATED INCOME STATEMENT
EUR million
4-6 4-6 1-6 1-6 1-12
2006 2005 2006 2005 2005
Revenue 382,4 335,9 730,8 668,8 1337,3
Other operating income 1,1 87,1 3,9 98,3 113,9
Operating expenses -288,7 -253,2 -541,4 -500,2 -1005,1
EBITDA 94,8 169,8 193,3 266,9 446,1
Depreciation and amortisation -56,2 -52,1 -111,5 -104,5 -213,2
EBIT 38,6 117,7 81,8 162,4 232,9
Share of associated companies'
profit 0,1 0,5 0,1 1,2 1,2
Financial income and expenses -4,1 -5,6 -8,4 -12,1 -22,2
Profit before tax 34,6 112,6 73,5 151,5 211,9
Income taxes -7,0 -17,9 -16,0 -23,8 -34,1
Profit for the period 27,6 94,7 57,5 127,7 177,8
Attributable to:
Equity holders of the parent 27,3 95,3 56,9 127,4 176,2
Minority interest 0,3 -0,6 0,6 0,3 1,6
Profit for the period 27,6 94,7 57,5 127,7 177,8
Earnings per share (EUR)
Basic 0,16 0,66 0,34 0,90 1,22
Diluted 0,16 0,66 0,34 0,90 1,22
Average number of outstanding
shares (1000 shares)
Basic 165941 141772 165929 141775 144807
Diluted 165941 141772 165929 141775 144807
REVENUE BY BUSINESS SEGMENTS
EUR million
4-6 4-6 1-6 1-6 1-12
2006 2005 2006 2005 2005
Mobile 239,4 180,3 431,4 359,3 739,9
Fixed Network 166,3 170,4 346,2 331,9 670,9
Other Companies 10,4 31,3 38,2
Unallocated
Intra-segment sales elimination -23,3 -25,2 -46,8 -53,7 -111,7
Corporation total 382,4 335,9 730,8 668,8 1337,3
EBITDA BY BUSINESS SEGMENTS
EUR million
4-6 4-6 1-6 1-6 1-12
2006 2005 2006 2005 2005
Mobile 57,0 73,5 110,3 122,7 220,1
Fixed Network 39,3 43,0 85,7 82,6 159,6
Other Companies 39,4 49,8 55,8
Unallocated -1,5 13,9 -2,7 11,8 10,5
Corporation total 94,8 169,8 193,3 266,9 446,1
EBIT BY BUSINESS SEGMENTS
EUR million
4-6 4-6 1-6 1-6 1-12
2006 2005 2006 2005 2005
Mobile 29,0 52,1 59,2 78,8 129,9
Fixed Network 11,2 16,5 26,3 29,8 44,8
Other Companies 34,9 41,6 47,3
Unallocated -1,6 14,2 -3,7 12,2 10,9
Corporation total 38,6 117,7 81,8 162,4 232,9
CONSOLIDATED BALANCE SHEET
EUR million
30.6. 30.6. 31.12.
2006 2005 2005
Non-current assets
Property, plant and equipment 634,6 702,4 660,6
Goodwill 772,1 470,4 770,6
Other intangible assets 187,2 79,0 178,7
Investments in associated companies 0,4 0,5 0,4
Available-for-sale investments 36,0 41,8 44,2
Other receivables 18,8 51,5 10,6
Deferred tax receivable 37,8 37,4 42,5
1686,9 1383,0 1707,6
Current assets
Inventories 26,8 17,1 20,3
Trade and other receivables 275,1 270,9 261,8
Cash and cash equivalents 40,6 169,2 212,7
342,5 457,2 494,8
Total assets 2029,4 1840,2 2202,4
Equity attributable to equity holders
of the parent 1279,9 989,6 1337,3
Minority interest 10,6 16,1 12,4
Total equity 1290,5 1005,7 1349,7
Non-current liabilities
Deferred tax liabilities 38,9 34,0 40,6
Provisions 10,5 8,8 9,4
Interest-bearing debt 325,5 407,3 393,7
Other non-current liabilities 11,6 13,6 12,7
386,5 463,7 456,4
Current liabilities
Trade and other payables 249,6 239,6 280,5
Provisions 6,9 4,9 3,4
Interest-bearing debt 95,9 126,3 112,4
352,4 370,8 396,3
Total equity and liabilities 2029,4 1840,2 2202,4
STATEMENT OF CHANGES IN EQUITY
EUR million
Share
Share issue Treasury Other Retained Minority Total
capital premium shares reserves earnings interest equity
Total equity
at 31.12.2004 71,0 530,4 -3,1 34,5 250,8 31,0 914,5
Available for
sale investments 31,9
Other changes 0,3 3,1 -11,6 -8,2
Items recognised
directly in
equity 32,2 3,1 -11,6 23,7
Profit for
the period 127,4 0,3 127,7
Total recognised
income and
expense for the
period 32,2 130,5 -11,3 151,4
Dividends -56,8 -3,6 -60,4
Purchase of
treasury shares 0,1 0,1
Total equity
at 30.6.2005 71,0 530,4 -3,0 66,7 324,5 16,1 1005,7
Total equity
at 31.12.2005 83,0 530,4 -2,5 418,9 307,5 12,4 1349,7
Available for
sale investments 1,3 1,3
Other changes -0,3 0,4 -1,3 -1,2
Items recognised
directly in
equity 1,0 0,4 -1,3 0,1
Profit for
the period 56,9 0,6 57,5
Total recognised
income and
expense for the
period 1,0 57,3 -0,7 57,6
Dividends -117,1 -1,1 -118,2
Sales of
treasury shares 0,8 0,1 0,9
Share based
compensation 0,5 0,5
Total equity
at 30.6.2006 83,0 530,4 -1,2 419,9 247,8 10,6 1290,5
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-6 1-6 1-12
2006 2005 2005
Cash flow from operating activities
Profit before tax 73,4 151,5 211,9
Depreciation and amortisation 111,5 104,5 213,2
Other adjustments to profit before tax 10,3 -67,8 -66,3
Change in working capital -47,3 -18,6 -23,7
Cash flow from operating activities 147,9 169,6 335,1
Received dividends and interests and interest
paid -8,2 -10,7 -20,5
Taxes paid -1,0 -3,0 -5,1
Net cash flow from operating activities 138,7 155,9 309,5
Cash flow from investments
Capital expenditure -97,0 -79,1 -194,9
Investments in shares and other investments -7,0 -12,9 -4,1
Proceeds from asset disposal 7,1 98,1 197,5
Net cash used in investment -96,9 6,1 -1,5
Cash flow after investments 41,8 162,0 308,0
Cash flow from financing
Proceeds from treasury shares 0,9 0,8
Change in interest-bearing receivables 0,8
Repayment of long-term debt -122,4 -85,5 -102,4
Change in short-term debt 35,0 -1,5 -18,6
Repayment of financing leases -5,6 -8,6 -16,7
Dividends paid -121,8 -60,0 -122,0
Net cash used in financing -213,9 -155,6 -258,1
Change in cash and cash equivalents -172,1 6,4 49,9
Cash and cash equivalents at beginning of
period 212,7 162,8 162,8
Cash and cash equivalents at end of period 40,6 169,2 212,7
LIABILITIES
EUR million
30.6. 30.6. 31.12.
2006 2005 2005
Mortgages, pledges and guarantees
Mortgages
For own and group companies 0,0 1,9 18,7
Pledges given
Pledges given as surety 0,7 0,9 0,9
Guarantees given
For others 3,9 3,1
Mortgages, pledges and guarantees total 4,6 2,8 22,6
Leasing contracts and
other commitments
Leasing commitments 12,8 19,1 14,3
Repurchase commitments 0,6 0,9 0,7
Real estate leases 59,9 59,4 63,3
Lease liabilities total 73,3 79,4 78,3
Other commitments
Lease-leaseback agreement (QTE facility)
Termination risk 19,4 22,9 23,5
Total value of the arrangement 159,7 167,9 171,5
Other commitments 0,1 0,8 0,6
KEY FIGURES
EUR million
4-6 4-6 1-6 1-6 1-12
2006 2005 2006 2005 2005
Shareholders' equity/share, EUR 7,71 6,98 8,06
Net debt 380,8 364,4 293,5
Gearing 29,5 % 36,2 % 21,7 %
Equity ratio 64,1 % 55,0 % 61,7 %
Gross investments in fixed assets 54,4 45,9 97,9 87,9 204,4
of which finance lease investments 0,6 7,4 0,9 8,8 9,5
Gross investments as % of
revenue 14,2 % 13,7 % 13,4 % 13,1 % 15,3 %
Investments in shares, 1,3 30,8 1,3 33,7 414,8
of which paid in equity issue 361,2
Average number of personnel 4380 5242 4989
Formulae for financial indicators
Gearing %
Interest-bearing debt - cash and cash equivalents
--------------------------------------------------x 100
Total equity
Equity ratio %
Total equity
------------------------------------------------- x 100
Balance sheet total - advances received
Net debt
Interest-bearing debt - cash and cash equivalents
Shareholders' equity/share
Equity attributable to equity holders of the parent
--------------------------------------------------------
Number of shares outstanding at end of period
Earnings/share
Profit for the period attributable to equity holders of parent
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Average number of outstanding shares
