ELISA'S JULY-SEPTEMBER PRE-TAX RESULT AMOUNTED TO EUR 28 MILLION
ELISA CORPORATION STOCK EXCHANGE RELEASE 27 OCTOBER 2005 AT 8.30am
ELISA'S JULY-SEPTEMBER PRE-TAX RESULT AMOUNTED TO EUR 28 MILLION
. July-September pre-tax profit amounted to EUR 28 million
(50). Revenue was EUR 326 million (333).
· Elisas total number of subscriptions in the mobile
communications business grew substantially. After Saunalahti
transferred its customers to Elisas network, there were
approximately 2 million subscriptions.
· Compared to the previous quarter, Elisas number of mobile
phone subscriptions, exclusive of MVNOs, rose by approximately
16,000 subscriptions, and the churn decreased from 32.3 to 27.2
per cent.
· Elisa continued to strengthen its position as market leader
in the broadband business. The number of broadband subscriptions
increased by approximately 38,000 over the previous quarter.
In July-September, Elisas key figures were:
Income statement Q3/2005 Q3/2004 2004
EUR million
Revenue 326 333 1 356
EBITDA 85 112 455
EBIT 33 57 242
Profit before taxes 28 50 212
Earnings per share, EUR 0.15 0.27 1.10
CAPEX 45 45 182
Figures describing the financial position and cash flow:
Financial position 30.9.2005 30.9.2004 31.12.2004
Net debt 363 513 462
Equity ratio, % 55 44 49
Cash flow statement Q3/2005 Q3/2004 2004
Cash flow after 1 71 225
investments
CEO Veli-Matti Mattila:
Elisas market position strengthened
Elisas market position strengthened in summer and in early
autumn. We did well in both the mobile communications and
broadband markets.
The review periods EBITDA and EBIT were in line with previous
guidelines. However, a challenging market situation and the
structural change in revenue are exerting more pressure on us to
improve our performance. We will continue streamlining measures
and business improvements in a determined manner to further
strengthen our competitive edge. The Saunalahti deal creates a
basis for us to build up more innovative services and boost our
productivity.
We achieved broadband market leadership during the previous
quarter, and we have further consolidated our position. The number
of Elisa broadband subscriptions almost doubled compared to the
corresponding period last year, and now amounts to almost 350,000.
The number of Elisa mobile subscribers grew to almost two million
after Saunalahtis customers shifted to Elisas network. In
addition, the number of subscriptions to Elisas own service
operator clearly increased.
Competition in the market will continue to be fierce. Besides
price competition, services will play a bigger role in the long
run. This will be facilitated by legislation to end the ban on
bundling 3G subscriptions and handsets, which is currently pending
in Parliament.
ELISA CORPORATION
Vesa Sahivirta
Director, IR and Financial Communication
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, Director, IR and Financial Communication, tel.
+358 10 262 3036
Distribution:
Helsinki Stock Exchange
Major media
Interim report for January-September 2005
This interim report has been prepared in accordance with IFRS
booking and valuing principles. Information in this interim report
has not been audited.
July-September business review
Market situation
The competitive situation in the mobile communications business
remained fierce. During the review period there were several sales
campaigns offering affordable voice and SMS services. In the
broadband business growth continued. Traditional subscriptions to
the fixed network and their volume of use have decreased more than
previously.
Elisa invested heavily in sales and marketing, and strengthened
its market position. The number of Elisa mobile phone
subscriptions continued to develop favourably. Prices for the
average call minute rate in the mobile communication business
continued to fall, and usage by subscribers increased. The number
of broadband subscriptions in the fixed network business continued
its strong growth, whereas the number and use of traditional
subscriptions decreased.
Revenue
EUR million Q3/2005 Q3/2004 Change %
Mobile communications 183 179 2%
Fixed network 166 161 3%
Other businesses 5 24 -79%
Sales between segments -28 -31 -10%
Total 326 333 - 2%
Elisas July-September comparable revenue rose slightly over the
year.
The additional traffic brought by Saunalahti customers increased
mobile communications business revenue. Mobile communications
business revenue was affected by the increased usage of
subscriptions and volume growth generated by Saunalahtis
subscriptions. Revenue growth was slowed down by falls in
interconnection fees and consumer prices. Increased revenue in the
fixed network business was affected by the consolidation of Tikka
Communications Oy and growth in the broadband business.
The decrease in the revenue from other operations was due to the
sale of non-core businesses Comptel and Yomi Software
Performance
EUR million
7-9/2005 7-9/2004 Change %
Mobile communications
EBITDA 46 60 -23%
EBITDA, % 25% 34%
EBIT 24 36 -33%
Fixed network
EBITDA 40 50 -20%
EBITDA, % 24% 31%
EBIT 12 22 -46%
Other businesses and corporate
functions
EBITDA -1 2
EBIT -3 -1
Group, total
EBITDA 85 112 -24%
EBITDA, % 26% 34%
EBIT 33 57 -42%
EBITDA was at the anticipated level. The tight market situation
eroded profitability, which was partly compensated by the
additional traffic brought by Saunalahti subscriptions.
The group's financial income and expenses totalled EUR -5 million
(-7). Reduced financial expenses were mainly due to the decreased
net debt.
Income taxes in the income statement amounted to EUR -6 million
(-11). The tax base in Finland was altered from 29 to 26 per cent
at the beginning of 2005.
The group's July-September result after taxes was EUR 22 million
(39). The group's earnings per share (EPS) amounted to EUR 0.15
(0.27). At the end of September, the group shareholders' equity
per share stood at EUR 7.17 (6.23 at the end of 2004).
Changes in corporate structure
On 1 July, Elisas holding in Tikka Communications Oy exceeded 90
per cent. Elisa announced it would prolong its bid from 28 August
till 31 October. Elisa also stated that it had made a redemption
offer on the remaining Tikka Communications shares. By the end of
September, Elisas shareholding stood at 97.7 per cent.
On 17 August, Elisa made a public share exchange offer to
Saunalahti shareholders and a tender offer to option holders. The
consideration offered by Elisa in the tender offer is 1 Elisa
share for 5.6 Saunalahti shares. In September, the Finnish
Competition Authority commenced further proceedings in the Elisa-
Saunalahti corporate acquisition, with special investigation
emphasis on the broadband market. The tender offer has been
extended several times and remains valid until 4 November 2005.
On 7 July, Elisa signed an agreement with a number of major
shareholders of Saunalahti Group Oyj. According to the agreement,
these shareholders undertook to participate in Elisas share
exchange offer. Novator Finland Oy is a party to the said
agreement. Pursuant to the announcement by Novator International
Ltd, the holdings of Novator Finland Oy, together with its
affiliates, of the share capital in Elisa will increase to
approximately 5.26 per cent; while voting rights, including shares
controlled pursuant to agreements, will rise to approximately 6.57
per cent.
Mobile business
Q3/2005 Q3/2004 2004
Number of subscriptions,
Finland* 1 480 794 1 368 515 1 383 515
Number of subscriptions,
Estonia** 257 830 215 300 225 500
Revenue/subscription**(ARPU), 31.2 37.5 37.8
Churn**, % 27.2 21.6 33.7
Usage, million minutes* 934 631 2 498
Usage, min./subscription/mth** 177 159 156
SMS, million minutes*** 219 135 537
SMS, msg/subscription/mth** 38 34 34
Value-added services/revenue,% 17 14 14
* Elisas network operator in Finland, exclusive of MVNOs
** Elisas service operator
*** Elisas network operator
In Q3, the number of subscriptions to Elisas network operator in
Finland rose substantially after Saunalahti transferred its
subscriptions to Elisas network, bringing the total number of
subscriptions up to approximately two million. Exclusive of MVNOs
(Mobile Virtual Network Operators), Elisa had a total of
1 480 794 subscriptions, indicating a growth of 15 728
subscriptions over the previous quarter.
The call minutes per subscription of Elisas own service operator
rose by around 11 per cent, and the number of SMS messages
increased by approximately 12 per cent over the previous year.
The call minutes of the network operator rose by 48 per cent and
SMS messages by 62 per cent. The increased volume of the network
operator was substantially affected by the additional traffic
generated by Saunalahti.
Revenue per subscription (ARPU) decreased by approximately 17 per
cent over the last year. This was mainly due to falls
interconnection fees and consumer prices.
The business operations of Elisas subsidiary in Estonia continued
to grow. Revenue was EUR 23.9 million (20.7), EBITDA EUR 7.5
million (6.6) and EBIT EUR 5.2 million (4.3). The number of
subscriptions rose by approximately 20 per cent, and at the end of
September, there were 257,830 subscriptions (215,300).
Fixed network business
Number of subscriptions 30.9.2005 30.9.2004 31.12.2004
Broadband subscriptions 345 898 185 136 222 307
ISDN channels 135 716 170 529 159 591
Cable TV subscriptions 208 592 193 750 198 447
Analogue and other
subscriptions 592 663 650 079 639 202
Subscriptions, total 1 282 869 1 199 494 1 219 547
Brisk demand for Elisa Broadband subscriptions continued in the
third quarter. At the same time, the company strengthened its
position as the broadband market leader in Finland.
During July-September, the number of broadband subscriptions
increased by 37 715. The number of subscriptions has now risen by
87 per cent over the past year. The number of traditional
subscriptions continued its steady decrease as voice traffic
shifted to the mobile network and data traffic moved to broadband
subscriptions. The number of traditional subscriptions has fallen
by 9 per cent over the last year.
Personnel
During July-September, the average number of employees at Elisa
was 4,842 (an average of 5,590 in 2004).
Number of personnel at end 30.9.2005 30.9.2004 31.12.2004
of review period
Mobile communications 1 449 1 485 1 477
Fixed network 3 102 3 005 3 015
Other businesses 166 865 814
Corporate functions 55 78 70
Total 4 772 5 433 5 376
The consolidation of Tikka Communications led to an increase in
the number of personnel in the fixed network compared to the
previous year. The decrease in the number of personnel in other
businesses was due to the divestment of the non-core companies
Comptel and Yomi Software.
For reasons related to productivity, Tikka Communications Oy
conducted personnel negotiations, which have been completed. At
the beginning of these negotiations, the reduction requirement was
estimated at 65 people; but as a result of the negotiations, the
number of redundancies was reduced to 32 people.
Investments
EUR million Q3/2005 Q3/2004 2004
Capital expenditures, of which 45 45 182
- mobile business 18 20 68
- GSM leasing liability buy-backs 0 0 20
- fixed network business 27 24 88
- others 0 1 6
Shares 5 0 61
Total 51 45 243
Financial position
Elisas financial position and liquidity remained good during the
third quarter. July-September cash flow after investments amounted
to EUR 1 million (71 million). The decrease in cash flow was due
to this years lower profit levels, and significant non-recurring
sales of non-core assets in 2004.
Financial key indicators
EUR million 30.9.2005 30.9.2004 31.12.2004
Net debt 363 513 462
Gearing, % 35.3 61.2 50.6
Equity ratio, % 55.3 43.5 49.3
Q3/2005 Q3/2004 2004
Cash flow after investments 1 71 225
Valid finance arrangements
EUR million
Maximum Use on 30 Sept.
amount 2005
Committed credit line 170 0
Commercial paper programme 1) 150 0
EMTN programme 2) 1 000 452
1) Programme not committed
2) European convertible bond programme, not committed. The
validity of the programme terminated on 30 June 2005. The
programme is being revised to conform to EU directives that came
into force on 1 July 2005.
Ratings per long-term loans
Credit rating agency Rating Outlook
Moodys Investor Services Baa2 Stable
Standard & Poors BBB Stable
Share
On 30 September 2005, the company's total number of shares was
141,989,109, and market capitalisation stood at EUR 2,038 million.
In July-September, a total of 60.9 million company shares were
traded on the Helsinki Stock Exchange for an aggregate of EUR
872.6 million. The shares traded amounted to 42.9 per cent of the
shares in the market.
The number of Elisa A warrants for the year 2000 was 3,600,000;
and the number of B warrants for the year 2000 was 3,600,000.
Treasury shares
The Board of Directors has an authorisation issued by the Annual
General Meeting of 14 March 2005 to acquire and assign treasury
shares. This authorisation has not been used.
Shares 30.9.2005 30.9.2004 31.12.2004
Treasury shares owned by
Elisa Corp. 0 0 0
Elisa shares owned by
subsidiaries 232 351 766 870 210 672
Treasury shares, total 232 351 766 870 210 672
% of share capital and votes 0.16% 0.56% 0.15%
Shares owned by Elisa Pension
Fund*) 0 263 563 202 263
% of share capital and votes 0% 0.19% 0.14%
*) The handling of Elisas pension issues was transferred to
insurance companies on 1 July 2005.
Major legal issues
The following changes have taken place in legal processes since
the publication of Elisa's annual report for 2004 and interim
reports for 2005:
The Supreme Court has confirmed the ruling by the Market Court in
which Elisa Matkapuhelinpalvelut Oy was prohibited, under a
penalty fine of EUR 100,000, from offering additional benefits
with certain types of mobile subscriptions in such a way that the
additional benefits dominate marketing at the expense of the
actual product.
Elisas holding in Tikka Communications Oy has exceeded 90 per
cent. Elisa has made a redemption claim on the minority shares of
Tikka Communications Oy, and filed for the establishment of an
arbitrary tribunal in the Central Chamber of Commerce to handle
the redemption claim. There are approximately 600 shares to be
redeemed, and the redemption price is EUR 1,940 per share.
On 28 September 2005, Espoo District Court ruled in favour of
Elisa, and dismissed an action that called for the annulment of a
decision made in an Annual General Meeting to merge Elisa
Matkapuhelinpalvelut Oy.
Events after the financial period
Elisa sold Estera Oys security business, which was categorised as
a non-core business activity, to ISS Security Oy. At the same
time, Estera Oys building automation business was sold to
Esteras operative management. The sales profit from these
transactions will be booked in the fourth quarter. The terms of
the transactions will be determined after the transactions are
materialized. By divesting Estera, Elisa further implemented its
strategy to streamline its corporate structure.
Elisa agreed to sell a EUR 40 million loan receivable from
Tropolys GmbH, relating to the disposal of Germany-based business,
to DF Deutsche Forfait AG. According to the terms of the loan
receivable transaction, Elisa retains the risk inclusive in the
payment of interests, while Deutsche Forfait retains the capital
risk.
In October, Tikka Communications Oy sold its 20,829 Elisa shares
for a total price of EUR 288,991.76.
The Finnish Competition Authority (FCA) has accepted Elisas
Saunalahti acquisition. Relating to this corporate arrangement,
Elisa has given undertakings to the FCA concerning the broadband
market. According to these commitments, the Saunaverkko networks
required in the implementation of Saunalahtis broadband services
will be sold inclusive of customer agreements in the regions of
Tampere, Jyväskylä and Riihimäki; and exclusive of customer
agreements in the Helsinki metropolitan area. The decision
regarding the mobile business does not include any conditions.
Outlook
The fierce competition in the Finnish telecommunications market
will continue. The use of mobile and fixed network products will
go on increasing quite steeply. Elisa will continue to focus on
strengthening its market position.
Taking into account the changes in the group structure, the
comparable revenue for 2005 is expected to remain approximately at
last years level.
Ongoing structural reorganization and competition are eroding the
predictability of financial results. The comparable EBITDA and
EBIT for the fourth quarter of 2005 are expected to decrease
slightly as compared to the previous quarters this year, taking
into account the additional traffic generated by Saunalahti. A
reduction in profitability may be expected due to the market
activities towards the end of the year, decline in average prices
in the mobile business, and structural changes in the fixed
network business.
The impacts of consolidating Saunalahti have not been taken into
account in these forecast estimates. When the Saunalahti deal is
realized, Saunalahtis results and the amortizations caused by the
allocation of the purchase price will begin to affect Elisas
result. The remaining synergies in addition to benefits of
increased network usage will begin to be realised from 2006.
The capital expenditure for the whole year will amount to about 13
per cent of revenue, and cash flow will continue to be clearly
positive.
BOARD OF DIRECTORS
Figures are not audited
CONSOLIDATED INCOME STATEMENT
EUR million
7-9 7-9 1-9 1-9 1-12
2005 2004 2005 2004 2004
Revenue 325,5 333,2 994,3 1005,2 1356,0
Other operating income 3,2 0,9 101,5 10,9 27,0
Operating expenses -244,0 -222,6 -744,2 -683,3 -928,2
EBITDA 84,7 111,5 351,6 332,8 454,8
Depreciation and amortisation -51,9 -54,1 -156,4 -160,5 -213,2
EBIT 32,8 57,4 195,2 172,3 241,6
Share of associated companies'
profit 0,0 0,2 1,2 -0,1 1,3
Financial income and expenses -5,0 -7,3 -17,1 -24,5 -30,4
Profit before tax 27,8 50,3 179,3 147,7 212,5
Income taxes -5,7 -11,4 -29,5 -39,9 -53,2
Profit for the period 22,1 38,9 149,8 107,8 159,3
Attributable to:
Equity holders of the parent 21,6 37,9 149,0 103,2 151,7
Minority interest 0,5 1,0 0,8 4,6 7,6
Profit for the period 22,1 38,9 149,8 107,8 159,3
Earnings per share (EUR)
Basic 0,15 0,27 1,05 0,75 1,10
Diluted 0,15 0,27 1,05 0,75 1,10
Average number of outstanding
shares (1000 shares)
Basic 141757 137245 141769 137237 137570
Diluted 141757 137245 141769 137237 137570
REVENUE BY BUSINESS SEGMENTS
EUR million
7-9 7-9 1-9 1-9 1-12
2005 2004 2005 2004 2004
Mobile 183,3 179,1 542,6 532,9 712,8
Fixed Network 166,0 160,8 497,9 491,6 653,6
Other Companies 5,4 23,9 36,7 74,9 108,4
Unallocated 2,4
Intra-segment sales elimination -29,2 -30,6 -82,9 -94,2 -121,2
Corporation total 325,5 333,2 994,3 1005,2 1356,0
EBITDA BY BUSINESS SEGMENTS
EUR million
7-9 7-9 1-9 1-9 1-12
2005 2004 2005 2004 2004
Mobile 45,6 60,0 168,3 170,3 227,0
Fixed Network 40,2 49,7 122,8 152,5 200,7
Other Companies 0,8 3,6 50,6 12,8 20,3
Unallocated -1,9 -1,8 9,9 -2,8 6,8
Corporation total 84,7 111,5 351,6 332,8 454,8
EBIT BY BUSINESS SEGMENTS
EUR million
7-9 7-9 1-9 1-9 1-12
2005 2004 2005 2004 2004
Mobile 24,0 35,9 102,8 103,5 138,1
Fixed Network 11,6 22,5 41,4 70,3 91,1
Other Companies 0,5 1,6 42,1 6,6 10,2
Unallocated -3,3 -2,6 8,9 -8,1 2,2
Corporation total 32,8 57,4 195,2 172,3 241,6
CONSOLIDATED BALANCE SHEET
EUR million
30.9. 30.9. 31.12.
2005 2004 2004
Non-current assets
Intangible assets 81,0 55,0 75,8
Consolidated goodwill 471,1 456,9 466,2
Tangible assets 693,6 736,3 724,2
Investments in associated companies 0,4 11,6 11,7
Other investments 46,5 7,5 10,4
Deferred tax receivable 35,0 86,0 42,5
Other receivables 10,8 46,6 46,5
1338,4 1399,9 1377,3
Current assets
Inventories 17,6 15,4 15,1
Trade and other receivables 359,1 305,4 308,5
Cash and cash equivalents 156,3 217,6 162,8
533,0 538,4 486,4
Total assets 1871,4 1938,3 1863,7
Equity attributable to equity holders
of the parent 1016,2 778,1 883,5
Minority interest 12,5 59,9 31,0
Total equity 1028,7 838,0 914,5
Non-current liabilities
Deferred tax liabilities 31,4 37,5 29,8
Provisions 6,1 31,9 21,4
Interest-bearing debt 403,3 602,1 593,4
Other non-current liabilities 13,1 6,0 10,3
453,9 677,5 654,9
Current liabilities
Provisions 4,6 3,0 3,3
Interest-bearing debt 115,7 128,3 31,8
Current liabilities 268,5 291,5 259,2
388,8 422,8 294,3
Total equity and liabilities 1871,4 1938,3 1863,7
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 31.12.2003 69,0 516,7 -24,7 3,4 110,0 73,3 747,7
Other changes -0,6 1,1 -18,0 -17,5
Net profit
for the period 103,2 4,6 107,8
Total equity
at 30.9.2004 69,0 516,7 -24,7 2,8 214,3 59,9 838,0
Total equity
at 31.12.2004 71,0 530,4 -3,1 34,5 250,7 31,0 914,5
Available for
sale investments 37,0 37,0
Treasury
shares 0,2 0,2
Dividend -56,7 -3,6 -60,3
Other changes 3,2 -15,7 -12,5
Net profit for
the period 149,0 0,8 149,8
Total equity
at 30.9.2005 71,0 530,4 -2,9 71,5 346,2 12,5 1028,7
RECONCILIATION OF NET PROFIT
FOR COMPARISON PERIODS 2004
EUR million
7-9 1-9 1-12
2004 2004 2004
Profit for the period before minority
interest according to FAS 25,7 75,6 113,9
Effects of adopting IFRS:
Reversal of goodwill amortisation 11,2 33,7 44,6
Employee benefits 1,2 3,6 10,7
Finance leases 0,4 -5,3 -9,6
Financial instruments 1,1 0,5 0,5
Income tax -0,7 -0,3 -0,8
IFRS adjustments, total 13,2 32,2 45,4
Profit for the period according to IFRS 38,9 107,8 159,3
Attributable to:
Equity holders of the parent 37,9 103,2 151,7
Minority interest 1,0 4,6 7,6
38,9 107,8 159,3
RECONCILIATION OF EQUITY
FOR COMPARISON PERIODS 2004
EUR million
1.1. 30.9. 31.12.
2004 2004 2004
Total equity according to FAS 699,1 759,9 851,0
Effects of adopting IFRS:
Reversal of goodwill amortisation 33,7 44,6
Employee benefits -24,0 -20,4 -13,5
Finance leases 4,7 -0,5 -4,9
Reversal of revaluations -11,1
Financial instruments 0,9 0,7 1,1
Other adjustments 1,7 1,7 1,6
Income tax 3,2 3,0 3,6
IFRS adjustments, total -24,6 18,2 32,5
Equity holders of the parent 674,5 778,1 883,5
Minority interest according to FAS 77,4 64,1 33,6
IFRS adjustments -4,1 -4,2 -2,6
Minority interest 73,3 59,9 31,0
Total equity according to IFRS 747,8 838,0 914,5
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-9 1-9 1-12
2005 2004 2004
Cash flow from operating activities
Profit before tax 179,3 147,7 212,5
Adjustments to profit before tax 89,9 165,6 199,7
Change in working capital -37,4 -12,9 4,9
Cash flow from operating activities 231,8 300,4 417,1
Received dividends and interests and interest paid -22,7 -41,2 -45,8
Taxes paid -4,2 -10,8 -16,0
Net cash flow from operating activities 204,9 248,4 355,3
Cash flow in investments
Capital expenditure -124,0 -117,1 -171,4
Investments in shares and other investments -17,2 -8,7 -10,4
Proceeds from asset disposal 99,7 45,1 51,4
Net cash used in investment -41,5 -80,7 -130,4
Cash flow after investments 163,4 167,7 224,9
Cash flow in financing
Sales of treasury shares 6,4
Change in interest-bearing receivables 0,7 25,0 24,3
Repayment of long-term debt -87,5 -1,0 -110,7
Change in short-term debt -10,4 -15,2 -15,3
Repayment of financing leases -12,4 -16,5 -21,0
Dividends paid -60,3 -9,6 -13,0
Cash flow in financing -169,9 -17,3 -129,3
Change in cash and cash equivalents -6,5 150,4 95,6
Cash and cash equivalents at beginning of period 162,8 67,2 67,2
Cash and cash equivalents at end of period 156,3 217,6 162,8
LIABILITIES
EUR million
30.9. 30.9. 31.12.
2005 2004 2004
Mortgages, pledges and guarantees
Mortgages
For own and group companies 1,9 38,9 27,6
Pledges given
Pledges given as surety 1,0 1,0 0,2
Guarantees given
For others 2,6 0,6
Mortgages, pledges and guarantees total 5,5 40,5 27,8
Derivative contracts
Forward contracts and swap agreements
Nominal value of underlying instrument 16,8 13,5
Leasing contracts and
other commitments
Leasing commitments 14,3 20,7 18,3
Repurchase commitments 0,8 1,7 1,2
Real estate leases 57,7 66,4 77,2
Lease liabilities total 72,8 88,8 96,7
Other commitments
Lease-leaseback agreement (QTE facility)
Termination risk 23,1 24,9 22,8
Total value of the arrangement 168,7 163,6 149,8
Other commitments 0,1 5,0 9,1
KEY FIGURES
EUR million
7-9 7-9 1-9 1-9 1-12
2005 2004 2005 2004 2004
Shareholders' equity/share, EUR 7,17 5,67 6,23
Net debt 362,7 512,6 462,2
Gearing 35,3 % 61,2 % 50,6 %
Equity ratio 55,3 % 43,5 % 49,3 %
Gross investments in fixed
assets 45,2 45,4 133,1 122,6 181,8
of which finance lease
investments 0,4 4,2 9,2 5,5 10,4
Gross investments as %
of revenue 13,9 % 13,6 % 13,4 % 12,2 % 13,4 %
Investments in shares 5,4 0,1 40,1 8,5 61,1
Average number of personnel 5109 5674 5590
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
-------------------------------------------------------------
Average number of outstanding shares
ACCOUNTING PRINCIPLES
This Interim Report has been prepared in accordance with IAS 34 Interim
Financial Reporting. Accounting principles are described by detail in
Elisas' comparative IFRS information for 2004 which was published in 8
April 2005. Press release is availabe on Elisa's website at elisa.com.
