ELISA?S PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES IMPROVED TO EUR 36 MILLION
ELISA CORPORATION STOCK EXCHANGE RELEASE 28 OCTOBER 2004 AT 8.00am
ELISAS PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES IMPROVED TO
EUR 36 MILLION
· Profit before extraordinary items and taxes increased to
EUR 36 million (17). Revenue amounted to EUR 333 million (385).
· The number of Elisas subscriptions in mobile
communications increased by 37 600 and the churn rate decreased
from 29.4 per cent in the previous quarter to 21.6 per cent.
· The financial position was strengthened: equity ratio
increased to 45 per cent (40) and net debt was reduced to
EUR 461 million (722)
Elisas key figures for July-September were:
Income statement Q3/2004 Q3/2003 Pro forma
EUR million Q3/2003*
Revenue 333 385 347
EBITDA 105 107 106
EBIT 45 26 38
Profit before
extraordinary items and
taxes 36 17 30
Earnings per share, EUR 0.18 0.01 0.10
Capex 41 45 38
* 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
Key figures describing the financial position and cash flow:
Financial position 30.9.2004 30.9.2003 31.12.2003
Net debt 461 722 654
Equity ratio, % 45.5 40.4 40.4
Cash flow statement 1-9/2004 1-9/2003 1-12/2003
Cash flow after
investments 151 36 105
President and CEO Veli-Matti Mattila:
Elisa successful in the face of fierce market competition.
The market situation particularly for mobile communications
remained tight. However, Elisa was able to increase the number of
its subscriptions substantially and the churn rate decreased. We
were also successful in the soaring broadband market. The
availability of Elisas broadband will expand to the whole of
Finland by the end of this year. Currently, our sales include over
300 municipalities and our aim is to have Elisa Broadband in every
municipality in Finland by the end of the year.
Profitability improved from the previous year. Compared to the
previous quarter profitability was slightly better than
anticipated. This was mainly due to lower market activities.
Elisa will initiate 3G mobile communication services in November.
We believe that in the first phase 3G services will be of
particular interest to corporate customers.
We estimate the market situation to remain challenging. We will
continue to strengthen our market position in both the mobile and
broadband markets. We will also determinedly continue to enhance
our operational efficiency to improve profitability.
Additional 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, Vice President, IR, tel. +358 10 262 3036
Distribution:
Helsinki Stock Exchange
Major media
Interim Report for July-September 2004
Market situation
Fierce competition continued in the market. Prices to fall for the
average call minutes rate of the mobile phone business continued
and the usage of subscriptions 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.
The consumer awareness of Elisas umbrella brand has increased
substantially. The number of both Elisas own and other service
operators in Elisas network continued to develop favourably.
Robust growth of broadband subscriptions in the fixed network
market continued and the number of traditional subscriptions
decreased.
Revenue
EUR million Q3/2004 Q3/2003 Change %
Mobile communications 179 194 -8%
Fixed network 161 166 -3%
Germany-based business - 34 -
Other business 24 20 +20%
Sales between segments -31 -29 +7%
Total 333 385 -13%
Elisa's revenue for July-September decreased by 13 per cent
compared to the corresponding period last year. The reduced
revenue was affected by: divesting the German operations, the
volume reduction of the traditional fixed network products,
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 4 per cent.
Comparable revenue for the mobile communication business decreased
by 4 per cent over the previous year. The fall in prices slightly
exceeded the increased usage. Revenue was boosted by the expanded
operations of Elisas Estonian subsidiary.
Revenue for the fixed network business decreased by 3 per cent
compared to the corresponding period last year. The change in
revenue was mainly due to the declining volume change in
traditional subscription products and equipment sales. The
increased number of broadband subscriptions improved the revenue.
Performance
EUR million Q3/2004 Q3/2003 Change %
Mobile communications
EBITDA 57 58 -2%
EBITDA,% 32% 30%
EBIT 25 25 0%
Fixed network
EBITDA 47 45 +4%
EBITDA,% 29% 27%
EBIT 21 14 +50%
Germany-based business
EBITDA - 1 -
EBIT - -12 -
Other business and
corporate functions
EBITDA 1 4
EBIT -2 -1
Total
EBITDA 105 107 -2%
EBITDA,% 32% 28%
EBIT 45 26 +73%
Elisas EBITDA remained at the same level as with the corresponding
period last year and the profitability improved. Profitability was
positively affected by the measures to streamline the business and
the divestment of the Germany-based business. In comparison with the
second quarter, improvement in EBITDA was due to lower marketing
expenses and seasonal fluctuations.
The group's other financing income and expenses totalled EUR -8
million (-10). Reduced financing expenses were mainly due to the
decreased net debt.
Revenue taxes in the income statement amounted to EUR -11 million
(-14). The reduction of the tax rate from 29 per cent to 26 per
cent at the beginning of 2005 has been taken into account in the
change of deferred tax asset/liability. Owing to the change, EUR 2
million have been booked as tax expense deductions.
The group's July-September result after taxes and minority
interests were EUR 25 million (2). The group's earnings per share
(EPS) amounted to EUR 0.18 (0.01). At the end of September, the
group shareholders' equity per share stood at EUR 5.54 (5.09 at
the end of 2003).
Mobile communications
Q3/2004 Q3/2003 2003
Number of subscriptions* 1 368 515 1 374 847 1 374 146
Revenue/subscription**(ARPU), 37.5 42.5 41.6
Churn**, % 21.6 24.2 18.6
Usage, million minutes* 631 598 2 310
Usage, min./subscription/mth** 159 151 146
SMS, million messages* 135 111 453
SMS, msg/subscription/mth** 34 28 29
Value-added services/revenue 14% 12% 12%
* Elisas network operator in Finland
** Elisas service operator
The number of subscriptions of Elisas network operator in Finland
increased by approximately 37 600 over the previous quarter, of
which the share of Elisas own service operator amounted to
approximately 34 000 subscriptions.
The usage by subscribers continued to grow in the third quarter.
The number of call minutes increased by approximately 6 per cent
and the number of SMS messages sent grew by approximately 22 per
cent over the comparable period in the previous year.
Revenue per subscription (ARPU) decreased by approximately 12 per
cent over the comparable period. This was partly due to a change
in the revenue booking procedure. Owing to the decrease in
interconnection fees and consumer prices, the comparable ARPU sank
by approximately 7 per cent. The revenue booking procedure was
changed in early 2004, so that remunerations payable to the
providers of value-added services and interconnection costs to be
invoiced are directly booked as a deduction of revenue.
The revenue of Elisa's subsidiary operating in Estonia was EUR
20.7 million (16.3), EBITDA EUR 6.6 million (5.0) and EBIT EUR 4.3
million (2.5). At the end of September, there were 215 300 (163
160) subscriptions.
Elisa and Saunalahti agreed on initiating mobile network
cooperation. The Saunalahti Prepaid subscription, launched at the
beginning of the fourth quarter this year, operates in Elisas
network.
Elisa and Bookit Ltd implemented a handy mobile phone-enabled
check-in service for Finnair. The service enables passengers to
check-in in advance with an SMS message.
Kolumbus introduced flat rate subscriptions, which allow the
customers to choose the amount of call minutes and SMS messages
according to their usage.
Fixed network business
Number of subscriptions 30.9.2004 30.9.2003 31.12.2003
Broadband subscriptions 185 136 107 875 127 388
ISDN channels 170 529 211 510 200 455
Cable TV subscriptions 193 750 179 858 183 469
Analogue and other
subscriptions 650 079 683 159 675 272
Subscriptions, total 1 199 494 1 182 402 1 186 584
Brisk demand for broadband subscriptions continued. During the
autumn, the speeds of the slower connection categories were
doubled and the prices of the more high-speed connection
categories were lowered. The number of subscriptions increased by
72 per cent over the previous year. The number of traditional
subscriptions continued steadily decreasing as voice shifted to
the mobile network and data to broadband subscriptions.
Elisa continued the measures to expand the geographical
availability of broadband in Finland during 2004. The objective is
to offer the Elisa Broadband to Internet users as a competitive
alternative around the whole of Finland. The sales had a very
positive start.
Elisa expanded its contact centre services by opening a new call
centre in Kemijärvi. In the preliminary phase, all calls to the
switchboards of the employment offices in Finland will be directed
to the Kemijärvi call centre.
Elisa Certificate Service was awarded with an information security
certificate. The certified information security management system
of Elisa Certification Service entails the respective service's
development, production and customer service.
Personnel
In July-September, the Elisa group employed an average of
5 500 people (5 674 in January-September).
30.9.2004 30.9.2003 31.12.2003
Mobile communications 1 485 1 729 1 678
Fixed network 3 005 3 765 3 572
Germany-based business - 472 426
Other business 865 952 905
Corporate functions 78 114 102
Total 5 433 7 032 6 683
Investments
EUR million Q3/2004 Q3/2003 Pro forma
Q3/2003*
Investments
- in fixed assets 41 45 38
- shares 0 22 3
Total 41 67 41
Aforementioned investments
include GSM leasing
liability buy-backs 0 3 3
*Exclusive of the Germany-based business
Capital expenditures in the mobile business were EUR 18 million
(22) and EUR 22 million (12) in the fixed network business.
Financial position
The group's financial position and liquidity strengthened and
remained stable. This was mainly affected by the development of a
positive result and the divestment of the parent companys former
main office. The groups January-September cash flow after
investments amounted to EUR 151 million (36).
On 30 September 2004, Elisa and Sponda Plc signed an agreement
whereby Elisa sold the real estate, which had hosted the former
main office to Sponda. The selling price, a total of EUR 25.5
million, was paid on 30 September 2004. Approximately EUR 13
million of the transaction is booked as capital gain, which will
be realised during the last quarter of 2004.
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-dated benchmark bond was
also issued. On aggregate, 66.4 per cent of the old notes were
exchanged for notes maturing on 22 September 2011 for
EUR 260 010 000.
Financial key indicators
EUR million 30.9.2004 30.9.2003 31.12.2003
Net debt 461 722 654
Gearing, % 56.0 87.9 87.5
Equity ratio, % 45.5 40.4 40.4
1-9/2004 1-9/2003 2003
Cash flow after investments 151 36 105
Ratings per long-term loans
Credit rating agency Rating Outlook
Moodys Investor Services Baa2 Stable
Standard & Poors BBB Stable
Share
At the end of September, the company's total number of shares was
138 011 757. The market capitalisation on 30 September 2004 stood
at EUR 1 462 million.
In July-September, a total of 32.6 million A shares of the company
were traded on the Helsinki Stock Exchange for an aggregate of EUR
319.8 million. The exchange was 23.7 per cent of the number of
shares in the market.
The number of Elisa Corporation's 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 September, the market capitalisation of the warrants
amounted to EUR 0.2 million.
Treasury shares
The total number of Elisa Corporation's A Shares owned by the
subsidiaries was 766 870 (781 563 at the end of 2003). The nominal
value of the shares totalled EUR 383 435, and their proportion of
the share capital and voting rights was 0.56 per cent. Moreover,
the Elisa Group Pension Fund owned 263 563 A shares (722 363 at
the end of 2003).
Major legal issues
The following changes have taken place in the legal processes
after the publication of Elisa's annual report for 2003 and
interim report for April-June 2004:
On 23 August 2004, the Helsinki District Court gave a ruling on
the redemption of Elisa Matkapuhelinpalvelut Oy's (formerly known
as Oy Radiolinja Ab) shares. The Helsinki District Court decided
to dismiss the action by Multiclearing, which demanded the
redemption price of 255 shares to be raised. An appeal on the
decision has been filed to the court of appeal, so the ruling is
not yet legally valid. Moreover, actions regarding the redemption
price of 70 shares of Radiolinja are still pending in the Helsinki
District Court.
With regard to the merger of Yomi Plc and Elisa Corporation,
shareholders who objected the merger decision are entitled to
demand the redemption of their shares. Fifteen shareholders, who
at the record date of the shareholders meeting owned 565 814
shares, have submitted the redemption issue to an arbitration
panel. However, demands for redemption have been made for
approximately 650 000 shares. Yomi Plc has offered a redemption
price EUR 5.90 per share.
The Finnish Communications Regulatory Authority has issued several
rulings on significant market power regarding fixed network
business. The rulings concern the transit market, broadband gross
market and marketing of local fixed connections. The
aforementioned rulings include the responsibility for non-
discriminatory terms and prices.
Events after the financial period
On 12 October 2004, the Finnish Trade Register issued an approval
for Yomi Plc to merge into Elisa Corporation. The merger will take
place on or about 31 December 2004.
Elisa Corporation and Suomen Asumisoikeus Oy have signed a long-
term agreement to supply Elisa Kotiportti and Elisa Kotiportti
Premium broadband services for dwellings of Suomen Asumisoikeus Oy
in 34 localities. The agreement applies to over 13 500 apartments.
Elisa repaid a EUR 100 million note which matured on 7 October
2004 from its cash funds.
Elisa is the first mobile operator in the world to start offering
wireless antivirus services to its smartphone customers. The
service is based on the F-Secure Mobile Anti-Virus(TM) service
solution. It provides real-time, on-device protection and
automatic over-the-air antivirus updates through a patented SMS
update mechanism and HTTPS connections.
Outlook
The telecommunications market in Finland is envisaged to continue
growing at a slow pace and the situation regarding competition to
remain challenging. No substantial changes in Elisa's market
position are expected.
Owing to both the revised billing of interconnection traffic and
falling prices, the comparable revenue for 2004 is estimated to
decrease slightly from the previous year's level.
EBITDA for the last quarter of the year, exclusive of the capital
gain on the former main office building, is estimated to remain at
the same level as the second quarter. The periodical expenses for
the latter part of the year will have an impact on the EBITDA
estimate. The full-year operative EBIT and profit before taxes are
estimated to improve substantially from the previous year.
Information in this interim report is not audited.
ELISA CORPORATION
BOARD OF DIRECTORS
ELISA CORPORATION
INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2004
(eur million)
(Figures in this interim report are not audited)
CONSOLIDATED INCOME STATEMENT
Jul- Jul- Jan- Jan- Jan-
Sep Sep Sep Sep Dec
2004 2003 2004 2003 2003
Revenue 333 385 1 005 1 147 1538
Other operating income 1 8 11 21 34
Operating expenses -229 -286 -698 -879 -1 187
Depreciation and value
adjustments:
On fixed assets -49 -67 -147 -198 -273
On Corporation's
goodwill -11 -14 -32 -42 -145
EBIT 45 26 139 49 -34
Financial income and
expenses:
Share of associated
companies' profit 0 1 -1 0 -0
Other financial income
and expenses -8 -10 -23 -29 -40
Profit before extraordinary
items 36 17 115 20 -74
Extraordinary items
Profit after extraordinary
items 36 17 115 20 -74
Income taxes -11 -14 -39 13 60
Minority interest -1 -2 -5 -2 -3
Net profit 25 2 71 30 -17
CONSOLIDATED BALANCE SHEET 30 Sep 30 Sep 31 Dec
2004 2003 2003
Fixed assets
Intangible assets 55 70 64
Consolidated goodwill 428 560 460
Tangible assets 665 870 856
Share in associated companies 16 21 20
Other investments 11 12 12
1 175 1 533 1 412
Current assets
Inventories 15 17 16
Deferred tax receivable 48 54 82
Receivables 365 385 353
Marketable securities 129 7 6
Cash in hand and in banks 89 50 61
646 513 518
Total assets 1 821 2 046 1 930
Shareholders' equity
Share capital 69 69 69
Share premium account 517 517 517
Contingency fund 3 3 3
Retained earnings 100 127 127
Net profit 71 30 -17
760 746 699
Minority interests 64 76 77
Provisions for liabilities and charges 21 44 52
Liabilities
Long-term creditors 574 710 617
Short-term creditors 402 470 485
976 1 180 1 102
Total shareholders' equity and
liabilities 1 821 2 046 1 930
Income taxes refer to taxes incurred during the period.
Items presented in the tables for each row have been rounded.
CONSOLIDATED CASH FLOW STATEMENT 1)
(eur million
Jan- Jan- Jan-
Sep Sep Dec
2004 2003 2003
Cash flow from operating activities
Profit before extraordinary items 115 20 -74
Adjustments:
Depreciation and value adjustments 180 239 418
Other financial income and expenses 23 30 40
Provisions for liabilities and
charges -19 -18 -5
Sales profits from the disposal of
fixed assets -1 -1 -3
Sales profits from business
operations and shares -5 0 -1
Other adjustments 1 -1 1
Cash inflow before working capital 294 269 376
Change in working capital -13 -23 -16
Cash inflow before taxes and
financials 281 246 360
Received dividends and interests and
interest paid -39 -36 -40
Taxes paid -11 -36 -15
Free funds from operations 231 174 305
Cash flow in investments
Investments in fixed assets -116 -131 -194
Disposal of fixed assets 32 1 5
Investments in shares and
other investments -8 -24 -28
Disposal of shares and other investments 11 16 16
Disposal of business operations 1 0 1
Cash flow in investments -80 -138 -200
Cash flow after investments 151 36 105
Cash flow in financing
Change in interest-bearing receivables 25 8 -17
Change in long-term loans 0 3 -97
Change in short-term loans -16 -55 12
Dividends paid -10 -1 -2
Cash flow in financing -1 -45 -104
Change in financial assets 150 -9 1
Financial assets at the beginning of 67 66 66
the financial period
Financial assets at the end of the
financial period 217 57 67
1) Consolidated cash flow statement
has been regrouped from the beginning
of 2004. Financial assets on period
Jan-Sep 2003 have been adjusted to
2003 reporting standard.
LIABILITIES 30 Sep 30 Sep 31 Dec
(eur million) 2004 2003 2003
Mortages, pledges and guarantees
Mortgages
For own and group companies 39 75 77
Pledges given
Pledges given as surety 1 9 24
Guarantees given
For others 1 11 11
Mortages, pledges and guarantees total 41 95 112
Derivative contracts
Forward contracts and swap agreements
Market value of underlying security 17 15 14
Market value 0 1 2
Leasing contracts and
other commitments
Leasing commitments 27 37 35
Repurchase commitments 2 4 3
Real estate leases 123 126 136
Lease liabilities total 152 167 174
Leasing commitments consists mainly
from leases of IT and office equipment
and cars.Real estate leases consists
both office and technical space. Leasing
contracts and other commitments contains
real estate leases as new information.
Leasing and rental agreements of
telecom networks
Fixed network 10 21 16
German business 138 133
Mobile network *) 31 63 56
Rental agreement liabilities, total 41 222 205
*) Added to this, a provision for the
future redemptions of GSM network
financial agreements 9 43 27
Lease-leaseback agreement commitment
(QTE facility) 164 174 161
Other commitments 5 10 6
KEY FIGURES
(eur million)
Jul- Jul- Jan- Jan- Jan-
Sep Sep Sep Sep Dec
2004 2003 2004 2003 2003
Earnings/
share (EPS), EUR 0,18 0,01 0,52 0,22 -0,12
Shareholders'
equity/share,
EUR 5,54 5,44 5,09
Gross
investments
in fixed assets 41 45 116 131 194
Gross investments
as % of revenue 12,3 11,7 11,5 11,4 12,6
Purchase of
shares 0 22 8 24 28
Non-interest-
bearing debt 298 401 355
Average number
of personnel 5 674 7 285 7 172
ADJUSTED GROUP KEY FIGURES
(exclusive of non-recurring
items)
Jul- Jul- Jan- Jan- Jan-
Sep Sep Sep Sep Dec
2004 2003 2004 2003 2003
Revenue 333 385 1005 1147 1538
EBITDA 105 107 319 289 407
EBITDA, % 31,5 27,8 31,8 25,2 26,5
EBIT 45 26 139 49 83
EBIT, % 13,4 6,8 13,8 4,3 5,4
Profit before
extraordinary
items 36 17 115 20 43
Adjusted key
figures have been
calculated without
the following non-
recurring items:
Restructuring costs -22
Write-downs in Germany -94
Non-recurring items, total -116
Impact on EBITDA -22
Impact on EBIT -116
Impact on profit before extraordinary items -116
KEY FIGURES BY SEGMENTS JULY-SEPTEMBER/2004 1)
(eur million)
Revenue EBITDA EBIT
Jul-Sep Jul-Sep Jul-Sep
2004 2003 2004 2003 2004 2003
Mobile 179 194 57 58 35 35
Amortisation
on goodwill -10 -10
Total 179 194 57 58 25 25
Fixed Network 161 166 47 45 21 15
Amortisation
on goodwill 0 -1
Total 161 166 47 45 21 14
Germany
Carrier-
business 34 1 -9
Amortisation
on goodwill -3
Total 34 1 -12
Other Companies
Comptel 13 12 3 4 3 3
Other Companies
2) 11 8 0 -1 -2 -3
Amortisation
on goodwill
Total 24 20 3 3 1 0
Unallocated
expenses 3) -2 1 -3 -1
Intra-segment
sales
elimination -31 -29
Corporation
total 333 385 105 107 45 26
KEY FIGURES BY SEGMENTS 4)
Segments Revenue EBITDA EBIT
Jul-Sep Jul-Sep Jul-Sep
2004 2003 2004 2003 2004 2003
Mobile 179 194 57 58 25 25
Fixed Network 161 166 47 45 21 14
Germany 34 1 -12
Other
Companies 24 20 3 3 1 0
Unallocated
expenses -2 1 -3 -1
Intra-segment
sales -31 -29
Corporation
total 333 385 105 108 45 26
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 and the parent company of Yomi
Group.
3) Includes unallocated expenses of corporate headquarters and
administration.
4) Reporting period figures don't include any non-recurring items.
KEY FIGURES BY SEGMENTS JANUARY-SEPTEMBER/2004 1)
(eur million)
Revenue EBITDA EBIT
Jan-Sep Jan-Sep Jan-Sep
2004 2003 2004 2003 2004 2003
Mobile 533 556 167 147 106 73
Amortisation
on goodwill -29 -29
Total 533 556 167 147 77 44
Fixed Network 491 515 144 137 66 52
Amortisation
on goodwill -2 -3
Total 491 515 144 137 64 49
Germany
Carrier-
business 101 2 -23
Amortisation
on goodwill -8
Total 101 2 -31
Other Companies
Comptel 42 41 12 7 10 5
Other
Companies 2) 34 31 -1 -3 -5 -9
Amortisation
on goodwill
Total 76 72 11 4 5 -4
Unallocated
expenses 3) 1 -3 -1 -8 -8
Intra-segment
sales
elimination -95 -98
Corporation
total 1 005 1 147 319 289 139 49
KEY FIGURES BY SEGMENTS 4)
Segments Revenue EBITDA EBIT
Jan-Sep Jan-Sep Jan-Sep
2004 2003 2004 2003 2004 2003
Mobile 533 556 167 147 77 44
Fixed Network 491 515 144 137 64 49
Germany 101 2 -31
Other
Companies 76 72 11 4 5 -4
Unallocated
expenses 1 -3 -1 -8 -8
Intra-segment
sales -95 -98
Corporation
total 1 005 1 147 319 289 139 49
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 and the parent company of Yomi
Group.
3) Includes unallocated expenses of corporate headquarters and
administration.
4) Reporting period figures don't include any non-recurring items.
FINANCIAL SITUATION
(eur million)
30 Sep 30 Jun 31 Mar 31 Dec 30 Sep
2004 2004 2004 2003 2003
Long-term
debt
Bonds and
notes 485 1) 472 472 472 572
Loans from
the Pension
funds 80 80 80 80 80
Loans from
financial
institutions 3 4 3 57 57
Total 568 555 554 609 709
Short-term
debt
Bonds and
notes 100 100 100 100
Loans from
financial
institutions 1 1 2 13 7
Committed
credit line
2) 0 0 0 0 0
Commercial
papers 3) 0 0 0 0 37
Others 10 4) 10 24 25 27
Total 111 111 126 138 71
Interest-
bearing debt,
total 679 666 680 747 780
Security
deposits 0 0 25 25 8
Securities 129 114 24 6 7
Cash and
bank 89 39 44 61 42
Interest-
bearing
receivables 218 153 93 92 57
Net debt 5) 461 513 587 654 723
1) The Nominal Value of the Notes issued with The Exchange Offer
in September 2004 is EUR 13 million higher than the value of
the Notes that were exchanged.
2) 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.
3) 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.
4) Redemption liability for minority shareholders in Elisa
Matkapuhelinpalvelut (EUR 3m) and deposits in the Financial
Services Office (EUR 7m).
5) Net debt is interest-bearing debt less cash and interest-
bearing receivables.
Key Financial Indicators
30 Sep 30 Jun 31 Mar 31 Dec 30 Sep
2004 2004 2004 2003 2003
Gearing 56 % 64 % 76 % 87 % 88 %
Equity
ratio 45 % 46 % 44 % 40 % 40 %
Formulae for financial indicators
Gearing %
Interest-bearing debt - cash and bank - securities
---------------------------------------------x 100
Shareholders' equity + minority interests
Equity ratio %
Shareholders' equity + minority interes
--------------------------------- x 100
Balance sheet total - advances received
