ELISA'S INTERIM REPORT JANUARY-JUNE 2009>
ELISA'S INTERIM REPORT JANUARY-JUNE 2009
(Thomson Reuters ONE) - Second quarter 2009Revenue was EUR 355 million (372)EBITDA excluding non-recurring items was EUR 116 million (109), EBITEUR 64 million (57)Profit before tax amounted to EUR 56 million (38)Earnings per share was EUR 0.27 (0.20)Cash flow after investments was strong, EUR 89 million (59)The full year outlook is reiteratedRevenue per subscription (ARPU) in the mobile business was at theprevious quarter's level EUR 24.0 (24.1 in the first quarter)Churn was 14.7 per cent (14.0 in the first quarter)The number of Elisa's mobile subscriptions increased by 127 000during the quarter, due in particular to the new 3G and 2G customers,as well as mobile broadbandThe number of fixed broadband subscriptions decreased by 13,600 onthe previous quarterNet debt / EBITDA was 1.6 (1.7 at the end of 2008) and gearing 89%(93 at the end of 2008)January-June 2009Revenue was EUR 706 million (739)EBITDA was EUR 231 million (213), EBIT EUR 126 million (110)EBITDA excluding non-recurring items was EUR 231 million (220), EBITEUR 126 million (117)Cash flow after investments was EUR 135 million (125)Key indicators:EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008Revenue 355 372 706 739EBITDA 116 105 231 213EBITDA excludingnon-recurring items 116 109 231 220EBIT 64 53 126 110Profit before tax 56 38 109 90Earnings per share, EUR 0.27 0.20 0.53 0.45Capital expenditures 36 41 70 78Financial position and cash flow:EUR million 30.6.2009 30.6.2008 31.12.2008Net debt 773 898 812Net debt / EBITDA 1) 1.6 1.9 1.7Gearing ratio, % 89.2 109.3 92.8Equity ratio, % 44.6 40.4 43.3+-------------------------------------------------------------+| EUR million | 4-6/2009 | 4-6/2008 | 1-6/2009 | 1-6/2008 ||-----------------+----------+----------+----------+----------|| Cash flow after | | | | || investments | 89 | 59 | 135 | 125 |+-------------------------------------------------------------+1) (interest-bearing debt - financial assets) / (4 previous quarters'EBITDA exclusive of non-recurring items)Additional information regarding the Key Performance Indicators isavailable on www.elisa.com/investors, in the section: Financial info,Financial Statements & Interim Reports: Elisa Quarterly Data.CEO Veli-Matti Mattila:"Elisa's result good despite economic downturnElisa's profitability continued to be strong. Continuous improvementof productivity and service quality have created prerequisites for agood result despite the general economic downturn. In the secondquarter, cash flow also continued to be strong. Revenue fell slightlyfrom the previous year, mainly as a result of lower equipment salesvolume as well as decreased interconnection fees and roaming revenue.The competitive situation remained challenging. In the consumerbusiness, we continued to develop an attractive service and productoffering as well as to improve productivity. We launched the ElisaViihde service - a modern, versatile digital IPTV service. Elisa wasthe first in Finland to launch a mobile broadband prepaidsubscription, which has been well received. Elisa has also managed tostrengthen its position in the corporate customer business.We continued to build our 3G network, which has the best coverage inFinland. The network currently covers an area of almost five millioninhabitants. Through our cooperation partners we can also offerexcellent global mobile coverage to our customers. Together with astrong growth in subscriptions, our mobile network consolidates ourposition as a 3G market leader.We continue determinedly to implement our strategy by developing theproductivity of our operations and by offering our customers moreservices relevant to them. Our competitiveness in cost and investmentefficiency, as well as good cash flow allows us to continueimplementing this strategy. However, the general economic downturnwill continue to affect our business to some extent. We believe thatwith firm improvement of productivity and expanding service offering,we can meet these challenges and that our business will continue todevelop favourably in the years to come."ELISAVesa SahivirtaDirector, IR and Financial Communicationstel. +358 50 520 5555Additional information:Mr Veli-Matti Mattila, CEO, tel. +358 10 262 2635Mr Jari Kinnunen, CFO, tel. +358 10 262 9510Mr Vesa Sahivirta, Director, IR and Financial Communications,tel. +358 50 520 5555Distribution:NASDAQ OMX HelsinkiPrincipal mediawww.elisa.comINTERIM REPORT JANUARY-JUNE 2009The interim report has been prepared in accordance with the IAS 34standard, "Interim reports". The information presented in thisinterim report is unaudited.Market situationThe general economic downturn has so far had only a marginal impacton the telecom operator business. The impact has been felt mainly inequipment sales, roaming revenues and corporate customer business.Elisa's Estonian business has also suffered to some extent. It isstill uncertain how much the possible deterioration of the corporatebusiness environment will impact the telecom sector.The competitive environment has been keen but stable in Finland. Thenumber of mobile subscriptions and the use of data services haveevolved favourably in Finland with 3G subscriptions comprising asignificant proportion of new subscriptions. The use of services madeavailable through 3G subscriptions has also increased. Another factorcontributing to the growth has been the use of multiple terminaldevices for different purposes and mobile broadband services. Churnin mobile subscriptions has been at a normal level, and competitionhas been mainly in services and campaigning.The number and usage of traditional fixed network subscriptionsdecreased at the same pace as in the previous year. The fixedbroadband market has matured, while the strong subscription growth inmobile broadband continued.Revenue, earnings and financial positionRevenue and earnings:EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008Revenue 355 372 706 739EBITDA 116 105 231 213EBITDA-% 32.8 28.2 32.8 28.8EBITDA excl. non-recurring items 116 109 231 220EBITDA-% excl.non-recurring items 32.8 29.3 32.8 29.7EBIT 64 53 126 110EBIT excl. non-recurring items 64 57 126 117EBIT-% excl. non-recurring items 18.0 15.4 17.8 15.9Second quarter 2009Revenue decreased by 4 per cent mainly due to lower equipment salesvolumes, lower interconnection fees both in Finland and Estonia and adecrease in traditional fixed business.EBITDA improved by 11 per cent and EBITDA excluding non-recurringitems by 7 per cent on the previous year. The improvement was mainlydue to improved efficiency measures. The total OPEX decreased by EUR28million. In 2008, extra implementation costs of the billing and CRMsystem, as well as revenue correction affected EBITDA negatively.Financial income and expenses totalled EUR -8 million (-15). Thedecrease in financial expenses was mainly due to mark-to-marketvaluation of the interest rate swap (negative effect in 2008),decrease in net debt and lower interest rates. Income taxes in theincome statement amounted to EUR -14 million (-6). Elisa's earningsafter taxes were EUR 42 million (32). The Group's earnings per share(EPS) amounted to EUR 0.27 (0.20).January-June 2009Elisa's revenue decreased by 4 per cent on last year mainly given thesame reasons as in the second quarter.EBITDA improved by 9 per cent and EBITDA excluding non-recurringitems by 5 per cent on the previous year. The improvement was mainlydue to improved efficiency measures. The total OPEX decreased by EUR51 million. In 2008, extra implementation costs of the billing andCRM system, as well as revenue correction affected EBITDA negatively.During the first half of 2009, sales costs increased due the stronggrowth in mobile subscriptions.Financial income and expenses totalled EUR -16 million (-20). Thedecrease in financial expenses was mainly attributed tomark-to-market valuation of the interest rate swap (negative effectin 2008), a decrease in net debt and lower interest rates. Incometaxes in the income statement amounted to EUR -26 million (-18).Elisa's earnings after taxes were EUR 84 million (72). The Group'searnings per share (EPS) amounted to EUR 0.53 (0.45).Financial position:EUR million 30.6.2009 30.6.2008 31.12.2008Net debt 773 898 812Net debt / EBITDA 1) 1.6 1.9 1.7Gearing ratio, % 89.2 109.3 92.8Equity ratio, % 44.6 40.4 43.3+-------------------------------------------------------------+| EUR million | 4-6/2009 | 4-6/2008 | 1-6/2009 | 1-6/2008 ||-----------------+----------+----------+----------+----------|| Cash flow after | | | | || investments | 89 | 59 | 135 | 125 |+-------------------------------------------------------------+1) (interest-bearing debt - financial assets) / (4 previous quarters'EBITDA exclusive of non-recurring items)Second quarter 2009Elisa's financial position and liquidity remained good. Elisa's netdebt decreased from EUR 898 million to EUR 773 million. April - Junecash flow after investments increased by 51 per cent to EUR 89million mainly due to the improved result, the decrease in capitalexpenditure and investment in shares.January-June 2009Cash flow after investments increased by 8 per cent to EUR 135million (125) on the previous year mainly due to the improved resultand the decrease in capital expenditure.Changes in corporate structureJanuary-June 2009In February, Elisa acquired the entire share capital of Xenetic Oy.Xenetic is a hosting service company, the business of which consistsof data centres, monitoring, data communications and data securityservices and equipment, and application leasing among other things.In February Elisa also acquired the business operations of TrackwayOy, which provides e.g. solutions for asset tracking. There were nomajor changes in the corporate structure in the second quarter 2009.Consumer Customer businessEUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008Revenue 209 218 410 439EBITDA 68 56 132 123EBITDA-% 32.5 25.8 32.1 28.0EBIT 38 27 71 64CAPEX 19 22 37 43Second quarter 2009The Consumer Customer business revenue was EUR 209 million (218) andEBITDA EUR 68 million (56). The decrease in revenue was mainly aresult of lower equipment sales volumes, lower interconnection feesboth in Finland and Estonia and a decrease in the traditional fixedbusiness. EBITDA was positively affected by productivity improvementmeasures. Total OPEX decreased by EUR 22 million. The decrease in theEstonian business due to the general economic downturn had a negativeeffect on EBITDA.January-June 2009The Consumer Customer business revenue was EUR 410 million (439) andEBITDA EUR 132 million (123). The decrease in revenue was mainlyattributable to the to same reasons as in the second quarter. EBITDAwas positively affected by productivity improvement measures andinterconnection costs. Total OPEX decreased by EUR 38 million. Thedecrease in the Estonian business due to the general economicdownturn had a negative effect on EBITDA.Corporate Customer businessEUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008Revenue 146 153 296 299EBITDA 48 48 100 90EBITDA-% 33,2 31,6 33,7 30,1EBIT 26 26 54 47CAPEX 17 19 33 35Second quarter 2009Corporate Customers business revenue was EUR 146 million (153) andEBITDA EUR 48 million (48). The decrease in revenue was mainly due tolower interconnection fees, a decrease in mobile revenue and adecrease in the traditional fixed business. Growth in ICT servicesincreased revenue. EBITDA was positively affected by productivityimprovement measures and negatively by decreased revenue. Total OPEXdecreased by EUR 7 million.January-June 2009Corporate Customers business revenue was EUR 296 million (299) andEBITDA EUR 100 million (90). The decrease in revenue was mainly dueto lower interconnection fees, decrease in equipment sales volumesand decrease in the traditional fixed business. Growth in ICTservices increased revenue. Increase in EBITDA was mainly due toproductivity improvement. Total OPEX decreased by EUR 13 million.PersonnelIn January-June the average number of personnel at Elisa was 3,143(2,970). Personnel by segment at the end of the period: 30.6.2009 30.6.2008 31.12.2008Consumer Customers 1,596 1,545 1,522Corporate Customers 1,725 1,309 1,495Total 3,321 2,854 3,017The number of personnel increased by about 300 from the beginning ofthe year. Personnel growth mainly occurred in call centers as aresult of an increase in the customer service business. The callcenter headcount varies flexibly according to customer demand andbusiness activity.InvestmentsEUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008Capital expenditures, of which 36 41 70 78- Consumer Customers 19 22 37 43- Corporate Customers 17 19 33 35Shares 1 11 6 13Total 37 52 76 91The main capital expenditures arose from the capacity and coverageincrease of the 3G network.Financing arrangements and ratingsValid financing arrangements: Maximum amount In use on 30.6.2009EUR millionCommitted credit limits 300 5Commercial paper programme ¹) 250 119EMTN programme ²) 1,000 6001) The programme is not committed.2) European Medium Term Note programme, not committed.Long-term credit ratings:Credit rating agency Rating OutlookMoody's Investor Services Baa2 StableStandard & Poor's BBB StableThe Group's cash and undrawn committed credit lines totalled EUR 324million at 30 June 2009 (EUR 258 million at the end of 2008). Thereare no major refinancing needs expected before the year 2011.ShareTrading of shares 4-6/2009 4-6/2008 1-6/2009 1-6/2008Shares traded, millions 57.2 94.4 106.4 177.2Volume, EUR million 602.3 1,372 1156.6 2,984% of shares 34 57 64 107Shares and market values 30.6.2009 30.6.2008 31.12.2008Total number of shares 166,307,586 166,307,586 166,307,586Treasury shares 10,688,629 7,688,629 10,688,629Outstanding shares 155,618,957 158,618,957 155,618,957Closing price, EUR 11.73 13.33 12.30Market capitalisation,EUR million 1,825 2,114 1,914Treasury shares, % 6.4 4.6 6.4In March, Elisa distributed a dividend of 0.60 euros per share,totalling EUR 93.4 million, in accordance with the decision of theAnnual General Meeting.In June, the Government of Finland transferred its Elisa shares toits fully-owned company Solidium Oy. Following this transfer, theGovernment of Finland has no direct ownership in Elisa. The number ofshares that transferred to Solidium Oy was 16,006,000 representing9.62 per cent of the share capital and votes.In June, Solidium Oy announced that it has exceeded 10 per centownership in Elisa. Solidium Oy's ownership increased to 16,631,000shares, or 10.00 per cent of the share capital and votes.The Board of Directors' authorisationsOn 18 March 2009, the Annual General Meeting accepted the proposal toauthorize the Board of Directors to decide on the distribution offunds from the unrestricted equity to a maximum of EUR 150,000,000.The authorization is effective until the beginning of the followingAnnual General Meeting.The Annual General Meeting decided on the authorization to repurchaseor accept as pledge the company's own shares. The repurchase may bedirected. The amount of shares under this authorization is 15,000,000shares at maximum. The authorization is effective until June 30,2010.The Annual General Meeting approved the proposal of the Board ofDirectors on the issuance of shares as well as the issuance ofspecial rights entitling to shares. The issue may be directed. Theauthorization is effective until June 30, 2013. A maximum aggregateof 50 million of the company's shares can be issued under theauthorization.Regulatory issuesOn April 2009, Elisa was handed a decision made by the FinnishCommunications Regulatory Authority, that Elisa was allocated morefrequencies in both the 1,800Mhz and 2,100Mhz wavebands. In the1,800Mhz waveband, the radio license is valid until November 2017and in the 2,100Mhz waveband, the radio licence is valid to March2019. The 1,800Mhz frequencies can be used for the LTE (Long TermEvolution technology).Significant legal issuesOn 28 May 2009, The Court of Appeal of Helsinki rendered its verdictin the proceedings concerning the stock exchange disclosures of theJippii Group in 2001. Jippii is Saunalahti Group's predecessor, whichElisa acquired in 2005. The Court has ordered Elisa to pay acorporate fine of EUR 200,000 and a forfeiture of EUR 85,000concerning the events of 2001.The Finnish Competition Authority has withdrawn its intent to make areport concerning the pricing of Elisa's broadband and removed thematter from the agenda.Substantial risks and uncertainties associated with Elisa'soperationsRisk management is part of Elisa's internal control system. It aimsto ensure that risks affecting the company's business are identified,influenced and monitored. The company classifies risks intostrategic, operational, insurable and financial risks.Strategic and operational risks:The telecommunications industry is under intense competition inElisa's main market areas, which may have an impact on Elisa'sbusiness. The telecommunications industry is subject to heavyregulation. Elisa and its businesses are monitored and regulated byseveral public authorities. This regulation also affects the pricelevel of some products and services offered by Elisa.The rapid developments in telecommunications technology may have asignificant impact on Elisa's business.Elisa's main market is Finland, where the number of mobile phones perinhabitant is among the highest in the world, which means that growthin subscriptions is limited. Furthermore, the volume of phone trafficin Elisa's fixed network has decreased in the past few years. Thesefactors may limit the opportunities for growth.The deterioration of the economic environment may impact the demandfor Elisa's services and products, and therefore growth prospects.However, a good demand for communication services is expected tocontinue also during a recession.Accident risks:The company's core operations are covered by insurance against damageand interruptions caused by accidents. Accident risks also includelitigations and claims.Financial risks:In order to manage interest rate risk, the Group's loans andinvestments are diversified in fixed- and variable-rate instruments.Interest rate derivatives are used to manage interest rate risk.As most of Elisa Group's cash flow is denominated in euros, theexchange rate risk is minor. Elisa's Estonian business, which isapproximately 7 per cent of the consolidated revenue is denominatedin Estonian crowns.The objective of liquidity risk management is to ensure the Group'sfinancing in all circumstances. The Group's cash and undrawncommitted credit lines totalled EUR 324 million at 30 June 2009 (EUR258 million at the end of 2008).Liquid assets are invested within confirmed limits to investmenttargets with a good credit rating. Credit risk concentrations inaccounts receivable are minor as the customer base is wide.In connection to the counterparty risk hedging Elisa provided amaximum USD 60 million guarantee for a credit derivative portfolio(CDO). The risk for the guarantee being called increased due to thecredit crisis in 2008, after which there have not been any materialchanges. The rating of the portfolio is at B1 level. The guarantee isvalid until 15 December 2012. The maximum liability USD 60 million,if realised, would mean cash payments of USD 0.5 million in 2010, USD33.0 million in 2011 and USD 26.5 million in 2012.Given the recent financial market turmoil, the banking sector hassuffered and the banks' ability to finance companies havedeteriorated, with some capital market activities not operatingfully. However, Elisa has cash reserves, committed credit facilitiesand a sustainable cash flow to cover its foreseeable financing needs.A detailed description of the financial risk management can be foundin the 2008 Annual Report on page 15.Events after the financial periodThere have not been any significant events following the reportingperiod.Outlook for 2009The current economic environment and financial market turmoil createsuncertainty for the 2009 outlook. Competition in the Finnishtelecommunications market remains challenging.The general economic downturn has so far had a slight impact on theElisa's Estonian business and the Corporate Customer segment. Themain risks still relate to the development of the Estonian economyand the corporate customer business.Full year revenue is estimated to be at the same or slightly lowerlevel than last year. The use of mobile communications and mobilebroadband products is continuing to rise. The equipment sales volumesand service sales in some customer segments may decrease. EBITDAexcluding non-recurring items is also expected to be at the same orslightly lower level than last year. Elisa will determinedly continueto stimulate demand for its services and continue to driveproductivity improvements of its operations. Likewise, capitalexpenditure will be actively controlled to a maximum 12 per cent ofrevenue, and it may be reduced clearly if the general economydeteriorates further.The contributory factors for long-term growth and profitabilityimprovement include the 3G market growth and efficiency measures,which are continuing as expected. Elisa's financial position andliquidity are good. There are no major refinancing needs expectedbefore the year 2011.BOARD OF DIRECTORSElisa Corporation1.1. - 30.6.2009UnauditedCONSOLIDATED INCOMESTATEMENT 4-6 4-6 1-6 1-6 1-12EUR million Note 2009 2008 2009 2008 2008Revenue 1 354,9 371,5 705,9 738,5 1485,0Other operating income 1,1 1,1 2,0 2,0 6,5Materials and services -143,6 -169,2 -289,3 -327,7 -652,4Employee expenses 7 -47,6 -41,7 -94,5 -87,0 -162,5Other operating expenses -48,4 -57,0 -92,8 -112,9 -205,0EBITDA 1 116,4 104,7 231,3 212,9 471,6Depreciation andamortisation 3 -52,5 -51,5 -105,7 -102,5 -207,1EBIT 1 63,9 53,2 125,6 110,4 264,5Financial income 2,7 1,9 6,1 8,7 17,1Financial expense -10,8 -17,3 -22,5 -28,9 -54,0Share of associatedcompanies' profit 0,0 0,0 0,0 0,0 0,0Profit before tax 55,8 37,8 109,2 90,2 227,6Income taxes -13,5 -6,0 -25,7 -18,2 -50,6Profit for the period 42,3 31,8 83,5 72,0 177,0Attributable to: Owners of the parent 42,1 31,7 83,1 71,7 176,3 Non-controlling interests 0,2 0,1 0,4 0,3 0,7 42,3 31,8 83,5 72,0 177,0Earnings per share (EUR)Basic and diluted 0,27 0,20 0,53 0,45 1,12Average number ofoutstanding shares(1000 shares)Basic and diluted 155 619 158 492 155 619 158 375 157 450CONSOLIDATED STATEMENT OFCOMPREHENSIVE INCOMEProfit for the period 42,3 31,8 83,5 72,0 177,0Other comprehensiveincome, net of tax:Available-for-saleinvestments 1,0 -2,3 -0,1 -1,8 -10,4Total comprehensiveincome 43,3 29,5 83,4 70,2 166,6Total comprehensiveincome attributable to: Owners of the parent 43,1 29,4 83,0 69,9 165,9 Non-controlling interests 0,2 0,1 0,4 0,3 0,7 43,3 29,5 83,4 70,2 166,6Elisa Corporation1.1. - 30.6.2009UnauditedCONSOLIDATED STATEMENT OF FINANCIAL POSITION 30.6. 31.12.EUR million Note 2009 2008Non-current assetsProperty, plant and equipment 3 610,2 630,5Goodwill 3 781,6 778,6Other intangible assets 3 166,8 177,5Investments in associated companies 0,1 0,1Available-for-sale investments 29,2 29,0Receivables 12,5 12,4Deferred tax assets 27,7 28,3 1628,1 1656,4Current assetsInventories 4 22,3 21,7Trade and other receivables 272,9 319,4Cash and cash equivalents 28,8 33,0 324,0 374,1Total assets 1952,1 2030,5Equity attributable to owners of the parent 5 864,8 873,4Non-controlling interests 1,2 1,6Total equity 866,0 875,0Non-current liabilitiesDeferred tax liabilities 26,3 30,9Provisions 5,1 5,6Interest-bearing debt 6 622,5 672,3Other non-current liabilities 14,1 14,0 668,0 722,8Current liabilitiesTrade and other payables 232,3 255,5Tax liabilities 5,5 3,4Provisions 1,4 1,5Interest-bearing debt 6 178,9 172,3 418,1 432,7Total equity and liabilities 1952,1 2030,5Elisa Corporation1.1. - 30.6.2009UnauditedCONDENSED CONSOLIDATEDSTATEMENT OF CASH FLOWS 1-6 1-6 1-12EUR million 2009 2008 2008Cash flow from operating activitiesProfit before tax 109,2 90,2 227,6Adjustments Depreciation and amortisation 105,7 102,5 205,8 Other adjustments 15,5 20,3 32,1 121,2 122,8 237,9Change in working capital Change in trade and other receivables 51,0 110,0 132,5 Change in inventories -0,5 3,6 6,7 Change in trade and other payables -16,3 -61,2 -56,2 34,2 52,4 83,0Financial items, net -17,0 -19,8 -38,8Taxes paid -34,5 -33,6 -59,5Net cash flow from operating activities 213,1 212,0 450,2Cash flow from investing activitiesCapital expenditure -69,6 -77,4 -179,2Purchase of shares -9,3 -10,0 -11,6Proceeds from asset disposal 0,8 0,4 0,8Net cash used in investing activities -78,1 -87,0 -190,0Cash flow before financing activities 135,0 125,0 260,2Cash flow from financing activitiesPurchase of treasury shares -43,3Proceeds from long-term borrowings 80,0 80,0Repayment of long-term borrowings -36,0 -30,0 -30,0Change in short-term borrowings -6,9 109,9 38,6Repayment of finance lease liabilities -2,4 -2,0 -4,0Dividends paid and capital repayment -93,9 -284,9 -285,4Net cash used in financing activities -139,2 -127,0 -244,1Change in cash and cash equivalents -4,2 -2,0 16,1Cash and cash equivalents at beginning ofperiod 33,0 16,9 16,9Cash and cash equivalents at end of period 28,8 14,9 33,0ElisaCorporation1.1. -30.6.2009UnauditedSTATEMENT OF CHANGES IN EQUITY Reserve for invested non- Share Treasury Other restricted Retained Minority TotalEUR million capital shares reserves equity earnings interest equityBalance atJanuary 1,2008 83,0 -165,8 403,9 535,7 176,6 2,0 1035,4Capitalrepayment -284,9 -284,9Dividends -0,6 -0,6Share-basedcompensation 7,0 -5,7 1,3Totalcomprehensiveincome -1,8 71,7 0,3 70,2Balance atJune 30,2008 83,0 -158,8 402,1 250,8 242,6 1,7 821,4EUR millionBalance atJanuary 1,2009 83,0 -202,0 393,5 250,8 348,1 1,6 875,0Dividends -93,4 -0,8 -94,2Share-basedcompensation 1,8 1,8Totalcomprehensiveincome -0,1 83,1 0,4 83,4Balance atJune 30,2009 83,0 -202,0 393,4 250,8 339,6 1,2 866,0Elisa Corporation1.1. - 30.6.2009UnauditedNOTESBASIS OF PREPARATIONThe Interim consolidated financial statements arein compliance with IAS 34 "Interim Financial Reporting".The Interim consolidated financial statements have beenprepared in accordance with International FinancialReporting Standards (IFRS) effective at the time ofpreparation and adopted for use by the European Union.This Interim consolidated financial statements should be readin conjunction with the 2008 consolidated financial statements.Except for accounting principle changes listed below,the accounting principles applied in this Interim reportare the same as in the Consolidated financial statementsat December 31, 2008.Changes in accountingprinciplesThe Group adopted the following standards, amendments tostandards and interpretations as from 1 January 2009 onward:- IFRS 8 Operating Segments standard which requires segmentinformation to be presented on the basis of internal reportingprovided to management. Elisa's internal organizational andmanagement structure is based on a customer-oriented operatingmodel. The new operating segments to be presented are ConsumerCustomers and Corporate Customers. Accounting principles andcomparable figures for 2008 have been published on 17 April, 2009.- IAS 1 Presentation of Financial Statements. The amendmentsconcerning the income statement and statement of changes inequity have affected the presentation of Interim consolidatedfinancial statements.Following newly adopted standards and interpretations have nothad any effect on Interim consolidated financial statements.- Revised IAS 23 Borrowing Costs- Revised IFRS 2 Share-based Payment- IFRIC 13 Customer Loyalty Programmes- IFRIC 14 The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction1. SEGMENT INFORMATION4-6/2009 Consumer Corporate Unallocated GroupEUR million Customers Customers Items TotalRevenue 208,7 146,2 354,9EBITDA 67,9 48,5 116,4Depreciation and amortisation -30,1 -22,4 -52,5EBIT 37,8 26,1 63,9Financial income 2,7 2,7Financial expense -10,8 -10,8Share of associatedcompanies' profit 0,0 0,0Profit before tax 55,8Investments 18,9 17,4 36,34-6/2008 Consumer Corporate Unallocated GroupEUR million Customers Customers Items TotalRevenue 218,3 153,2 371,5EBITDA 56,3 48,4 104,7Depreciation and amortisation -29,6 -21,9 -51,5EBIT 26,7 26,5 53,2Financial income 1,9 1,9Financial expense -17,3 -17,3Share of associatedcompanies' profit 0,0 0,0Profit before tax 37,8Investments 22,2 18,5 40,7Elisa Corporation1.1. - 30.6.2009Unaudited1-6/2009 Consumer Corporate Unallocated GroupEUR million Customers Customers Items TotalRevenue 410,2 295,7 705,9EBITDA 131,7 99,6 231,3Depreciation and amortisation -60,5 -45,2 -105,7EBIT 71,2 54,4 125,6Financial income 6,1 6,1Financial expense -22,5 -22,5Share of associatedcompanies' profit 0,0 0,0Profit before tax 109,2Investments 37,2 33,0 70,21-6/2008 Consumer Corporate Unallocated GroupEUR million Customers Customers Items TotalRevenue 439,2 299,3 738,5EBITDA 122,8 90,1 212,9Depreciation and amortisation -59,0 -43,5 -102,5EBIT 63,8 46,6 110,4Financial income 8,7 8,7Financial expense -28,9 -28,9Share of associatedcompanies' profit 0,0 0,0Profit before tax 90,2Investments 42,8 35,5 78,31-12/2008 Consumer Corporate Unallocated GroupEUR million Customers Customers Items TotalRevenue 881,5 603,5 1485,0EBITDA 267,3 204,3 471,6Depreciation and amortisation -118,7 -88,4 -207,1EBIT 148,6 115,9 264,5Financial income 17,1 17,1Financial expense -54,0 -54,0Share of associatedcompanies' profit 0,0 0,0Profit before tax 227,6Total assets 1143,3 780,8 106,4 2030,5Investments 101,8 82,1 183,9Elisa Corporation1.1. - 30.6.2009Unaudited2. ACQUISITIONSElisa Oyj acquired all shares of Xenetic Oy onFebruary 13, 2009. Xenetic was founded in 2000and it is a leading Finnish hosting service company,the business of which consists of computer rooms,monitoring, control, data communications, datasecurity services and equipment, and applicationleasing. Xenetic Oy was consolidated with the Groupsince March 2009. If the acquisition had been madeas of the beginning of the financial period 2009, it wouldnot have had any major impact in Group's revenueor earnings for the period.In a business deal signed on 6 February 2009,Elisa Oyj has acquired the asset managementand logistics system business of Trackway Oy.The total acquisition cost was EUR 5.1 million,of which EUR 6.2 million effected on cash flow(including cash limit repayment). The businesscombinations resulted in goodwill ofEUR 2.0 million.Additional purchase price relating to previousyear's acquisitions resulted in goodwill ofEUR 1.0 million.3. PROPERTY, PLANT ANDEQUIPMENT AND INTANGIBLE ASSETS Property Other plant and intangibleEUR million equipment Goodwill assetsCost, 1 January 2009 2320,3 778,6 379,3Additions 57,6 12,6Acquisitions of subsidiaries 2,2 3,0 2,5Disposals -0,5Reclassifications 0,5 -0,530 June 2009 2380,1 781,6 393,9Accumulated depreciation/amortisation, 1 January 2009 1689,8 201,8Depreciation for the period 80,5 25,3Disposals and reclassifications -0,430 June 2009 1769,9 227,1Net carrying amounts:1 January 2009 630,5 778,6 177,530 June 2009 610,2 781,6 166,8Commitments to purchase property, plantand equipment and intangible assets amounts toEUR 33,9 million as at 30 June 2009.4. INVENTORIESWrite-downs of inventories amounting toEUR 0,7 million were recognised at 30June, 2009 (EUR 1,6 million,31 December, 2008)5. EQUITYDividendsOn 18 March, 2009 Elisa's Annual General Meetingdecided of a dividend of 0,60 euros per share.The total dividend amounts to EUR 93,4 million andpayment started on 30 March, 2009.Elisa Corporation1.1. - 30.6.2008Unaudited6. ISSUANCES ANDREPAYMENTS OF DEBTNo bonds have been issuedduring the first half of 2009.Repayments of Bonds Nominal Nominal Book interest Effective MaturityEUR million value value rate interest dateEMTN programme 2001/EUR 1,000 million 6-month euribor +III/2002 20,0 20,0 1,02% 6,439 % 8.4.2009 6-month euribor +V/2002 6,0 6,0 1,00% 6,419 % 8.4.2009 6-month euribor +VI/2002 10,0 10,0 1,00% 6,419 % 8.4.2009Total of repayments 36,0 36,0The unused amount of EUR 1,000 millionEMTN program is EUR 400 million as at30 June 2009.7. RELATED PARTY TRANSACTIONSElisa Group's related parties includesubsidiaries, associates and key management.Key management consists of Elisa's Board ofDirectors, the CEO and the Executive Board.Changes in subsidiary relationshipsduring the period are as follows:Xenetic Oy acquired 100 %Related party transactionswith associated companies 1-6/2009 Sales 0,0 Purchases 0,3Management remuneration will be announcedin Annual financial statements.Elisa Corporation1.1. - 30.6.2009Unaudited8. OPERATING LEASE COMMITMENTS 30.6. 31.12.EUR million 2009 2008Due within 1 year 20,9 22,2Due after 1 year but within 5 years 35,9 36,8Due after 5 years 15,6 15,2Total 72,4 74,29. CONTINGENT LIABILITIES 30.6. 31.12.EUR million 2009 2008Mortgages For own and group companies 0,7 0,4Pledges given Pledges given as surety 0,8Guarantees given For others (* 43,4 44,3Mortgages, pledges and guarantees total 44,1 45,5Other commitments Repurchase commitments 0,0 0,1*) EUR 42.5 million is related to the guarantee givenon a CDO portfolio.10. DERIVATIVE INSTRUMENTS 30.6. 31.12.EUR million 2009 2008Interest rate swaps Nominal value 150,0 150,0 Fair value recognised in the balance sheet 1,6 1,0Credit default swaps (* Nominal value 44,8 47,4*) CDS is related to hedging of the guarantor bankin the QTE-arrangement. In 2008 Elisa wrote downthe fair value of the CDS agreement.11. EVENTS AFTERTHE BALANCE SHEET DATENo significant events have taken placeafter the balance sheet date.Elisa Corporation1.1. - 30.6.2009UnauditedKEY FIGURES 1-6 1-6 1-12EUR million 2009 2008 2008Shareholders' equity per share, EUR 5,56 5,17 5,61Interest bearing net debt 772,6 898,1 811,6Gearing 89,2% 109,3% 92,8%Equity ratio 44,6% 40,4% 43,3%Return on investment (ROI) *) 17,0% 16,3% 15,6%Gross investments in fixed assets 70,2 78,3 183,9of which finance lease investments 0,6 0,9 4,7Gross investments as % of revenue 10,0% 10,6% 12,4%Investments in shares 6,2 12,6 14,8Average number of employees 3143 2970 2946*) rolling 12 months profit precedingthe reporting dateFormulae for financial indicatorsGearing %Interest-bearing debt -cash and cash equivalents------------------------------------ x 100Total equityEquity ratio %Total equity-------------------------------x 100Balance sheet total -advances receivedReturn on investment % (ROI)Profit before taxes +interest and otherfinancial expenses------------------------------------------x 100Total equity +interest bearing liabilities (average)Net debtInterest-bearing debt -cash and cash equivalentsShareholders' equity per shareEquity attributable to equity holdersof the parent------------------------------------------------Number of shares outstandingat end of periodEarnings/shareProfit for the period attributable toequity holders of parent---------------------------------------------------Average number of outstanding shareshttp://hugin.info/130630/R/1329438/313863.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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Datum: 17.07.2009 - 07:30 Uhr
Sprache: Deutsch
News-ID 3675
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