743700TU2S3DXWGU7H32 2022-01-01 2022-12-31 743700TU2S3DXWGU7H32 2021-01-01 2021-12-31 743700TU2S3DXWGU7H32 2022-12-31 743700TU2S3DXWGU7H32 2021-12-31 743700TU2S3DXWGU7H32 2020-12-31 743700TU2S3DXWGU7H32 2020-12-31 ifrs-full:IssuedCapitalMember 743700TU2S3DXWGU7H32 2020-12-31 ifrs-full:TreasurySharesMember 743700TU2S3DXWGU7H32 2020-12-31 eli:ReserveOfInvestedUnrestrictedEquityMember 743700TU2S3DXWGU7H32 2020-12-31 ifrs-full:OtherReservesMember iso4217:EUR iso4217:EUR xbrli:shares xbrli:shares 743700TU2S3DXWGU7H32 2020-12-31 ifrs-full:RetainedEarningsMember 743700TU2S3DXWGU7H32 2020-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700TU2S3DXWGU7H32 2020-12-31 ifrs-full:NoncontrollingInterestsMember 743700TU2S3DXWGU7H32 2021-01-01 2021-12-31 ifrs-full:RetainedEarningsMember 743700TU2S3DXWGU7H32 2021-01-01 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700TU2S3DXWGU7H32 2021-01-01 2021-12-31 ifrs-full:NoncontrollingInterestsMember 743700TU2S3DXWGU7H32 2021-01-01 2021-12-31 ifrs-full:OtherReservesMember 743700TU2S3DXWGU7H32 2021-01-01 2021-12-31 ifrs-full:TreasurySharesMember 743700TU2S3DXWGU7H32 2021-12-31 ifrs-full:IssuedCapitalMember 743700TU2S3DXWGU7H32 2021-12-31 ifrs-full:TreasurySharesMember 743700TU2S3DXWGU7H32 2021-12-31 eli:ReserveOfInvestedUnrestrictedEquityMember 743700TU2S3DXWGU7H32 2021-12-31 ifrs-full:OtherReservesMember 743700TU2S3DXWGU7H32 2021-12-31 ifrs-full:RetainedEarningsMember 743700TU2S3DXWGU7H32 2021-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700TU2S3DXWGU7H32 2021-12-31 ifrs-full:NoncontrollingInterestsMember 743700TU2S3DXWGU7H32 2022-01-01 2022-12-31 ifrs-full:RetainedEarningsMember 743700TU2S3DXWGU7H32 2022-01-01 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700TU2S3DXWGU7H32 2022-01-01 2022-12-31 ifrs-full:NoncontrollingInterestsMember 743700TU2S3DXWGU7H32 2022-01-01 2022-12-31 ifrs-full:OtherReservesMember 743700TU2S3DXWGU7H32 2022-01-01 2022-12-31 ifrs-full:TreasurySharesMember 743700TU2S3DXWGU7H32 2022-12-31 ifrs-full:IssuedCapitalMember 743700TU2S3DXWGU7H32 2022-12-31 ifrs-full:TreasurySharesMember 743700TU2S3DXWGU7H32 2022-12-31 eli:ReserveOfInvestedUnrestrictedEquityMember 743700TU2S3DXWGU7H32 2022-12-31 ifrs-full:OtherReservesMember 743700TU2S3DXWGU7H32 2022-12-31 ifrs-full:RetainedEarningsMember 743700TU2S3DXWGU7H32 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 743700TU2S3DXWGU7H32 2022-12-31 ifrs-full:NoncontrollingInterestsMember


FINANCIAL
STATEMENTS
annual reviewsustainabilitygovernanceremuneration
FINANCIAL STATEMENTS 2022
II
Contents
THE REPORT OF THE BOARD OF DIRECTORS 1
FINANCIAL STATEMENTS 9
 

 
 
 
 
Notes 16
1. General accounting principles 16
 
 
 
2. Operational result 19
 
 
 
 
 
 
3. Business acquisitions and disposals 28
4. Personnel 35
 
 
 
5. Tangible and Intangible assets 45
 
 
 
 
6. Inventories, trade and other receivables,
trade and other liabilities 57
 
 
 
7. Capital structure 62
 
 
 
 
8. Other notes 79
 
 
 
 
 
9. Key indicators 90

 
 
 
PARENT COMPANY FINANCIAL STATEMENTS 96
Parent company Financial Statements 96
 
 
 

company 100
 
Notes to the income statement 101
 
 
 
 
 
 
 
 
 
Notes to the balance sheet 104
 
 
 
 
 
 
 
 
 
 
SHARES AND SHAREHOLDERS 115
BOARD’S PROPOSAL FOR THE PROFITS DISTRIBUTION 119
SIGNATURES 119
AUDITOR’S REPORT 120
AUDITOR’S REASONABLE ASSURANCE REPORT
ON ESEF FINANCIAL STATEMENTS 125
Contents
FINANCIAL STATEMENTS 2022
1
Report of the board of directors 2022
THE REPORT OF THE BOARD OF DIRECTORS
Market situation


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
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EUR million 2022 2021 2020
 2,130  
 733  
 34.4%  
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735  
 34.5%  
 470  
 22.1%  
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472  
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 30.4%  
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FINANCIAL STATEMENTS 2022
2

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
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
EUR million 2022 2021 2020
 1,276  

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1.7  
 101.9%  
 40.6%  
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300  
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




Changes in corporate structure













FINANCIAL STATEMENTS 2022
3
Consumer Customers business
EUR million 2022 2021
(1
2020
 1,301  
 496  
 38.1%  


497  
 38.2%  
 322  
 24.7%  


323  
 24.9%  
 191  









Corporate Customers business
EUR million 2022 2021
(1
2020
 829  
 238  
 28.7%  


238  
 28.7%  
 148  
 17.9%  


148  
 17.9%  
 99  










FINANCIAL STATEMENTS 2022
4
Investments
EUR million
2022
2021 2020


 290  
 191  
 99  
 25  
 314  
 9 
 26  


 255  
 12  








2022 2021 2020
 2,939  
 2,684  
Total 5,623  



Key ESG indicators
4Q22
4Q21

 –5.7% 
 86.2% 
 29.6% 



337 
 12 



Financing arrangements and ratings
EUR million
Maximum
amount
In use on
31 Dec 2022
  
  
  
  
Long term credit ratings Rating Outlook

  Stable
  Stable
FINANCIAL STATEMENTS 2022
5
Share


 2022 2021 2020
 71.2  


208.4  
 279.6  
 14,575.8  
 167.1,%  

Shares and market values 2022 2021 2020
 167,335,073  
Treasury shares 7,075,378  
 160,259,695  
 49.46  
 8,276  
 4.23,%  
   
 Total Treasury Outstanding
   


 
   







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



FINANCIAL STATEMENTS 2022
6
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

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
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




FINANCIAL STATEMENTS 2022
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









FINANCIAL STATEMENTS 2022
8











Corporate Governance Statement
and Remuneration Report



Events after the reporting period


























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
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
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
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

FINANCIAL STATEMENTS 2022
9

Consolidated income statement |  |
EUR million | Note | 2022 | 2021
Revenue | 2.1, 2.3 | 2,129.5 | 1,997.9
Other operating income | 2.4 | 6.9 | 9.0
Materials and services | 2.5 | –820.8 | –763.6
Employee expenses | 4.1 | –394.8 | –373.8
Other operating expenses | 2.5 | –187.5 | –172.2
EBITDA | 2.1 | 733.3 | 697.4
Depreciation, amortisation and impairment | 2.1, 5.1 | –263.4 | –266.6
EBIT | 2.1 | 469.8 | 430.8
Financial income | 7.4.1 | 5.6 | 4.6
Financial expenses | 7.4.1 | –18.7 | –16.5
Share of associated companies’ profit |  | –0.7 | –0.5
Profit before tax |  | 456.0 | 418.4
Income taxes | 8.1.1 | –83.2 | –74.9
Profit for the period |  | 372.8 | 343.5
Attributable to Equity holders of the parent |  | 374.1 | 343.6
Non-controlling interests |  | –1.3 | –0.2
|  | 372.8 | 343.5
Earnings per share (EUR) |  |  |
Basic | 2.6 | 2.33 | 2.15
Diluted | 2.6 | 2.33 | 2.15
Average number of outstanding shares (1,000 shares) |  |  |
Basic | 2.6 | 160,253 | 160,174
Diluted | 2.6 | 160,410 | 160,174

Contents
THE REPORT OF THE BOARD OF DIRECTORS
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS 2022
10

Consolidated statement of comprehensive income |
EUR million | Note | 2022 | 2021
Profit for the period |  | 372.8 | 343.5
Other comprehensive income, net of tax |  |  |
Items which may be reclassified subsequently to profit or loss |  |  |
Cash flow hedge |  | –0.3 | 0.9
Translation differences |  | –4.7 | –1.2
Items which are not reclassified subsequently to profit or loss |  |  |
Remeasurements of the net defined benefit liability | 4.3 | 0.4 | –2.8
Other comprehensive income |  | –4.7 | –3.0
Total comprehensive income |  | 368.0 | 340.4
Total comprehensive income attributable to Equity holders of the parent |  | 369.3 | 340.5
Non-controlling interests |  | –1.3 | –0.1

FINANCIAL STATEMENTS 2022
11

Consolidated statement of financial position |  |
EUR million | Note | 31 Dec. 2022 | 31 Dec. 2021
ASSETS |  |  |
Non-current assets |  |  |
Property, plant and equipment | 5.2 | 766.7 | 752.7
Right-of-use assets | 5.3 | 90.4 | 91.0
Goodwill | 5.4.1 | 1,157.3 | 1,139.4
Intangible assets | 5.4 | 210.5 | 198.1
Investments in associated companies | 8.3.2 | 9.9 | 10.6
Other financial assets | 7.4.3 | 16.2 | 16.4
Trade and other receivables | 6.2.2, 7.4.4 | 116.8 | 103.2
Deferred tax assets | 8.1.2 | 13.1 | 13.1
|  | 2,380.9 | 2,324.5
Current assets |  |  |
Inventories | 6.1 | 95.5 | 82.8
Trade and other receivables | 6.2.1 | 537.1 | 506.3
Tax receivables |  | 1.8 | 0.7
Cash and cash equivalents |  | 85.4 | 114.1
|  | 719.9 | 703.9
TOTAL ASSETS | 2.1 | 3,100.8 | 3,028.4

Consolidated Financial Statements
FINANCIAL STATEMENTS 2022
12

Consolidated statement of financial position |  |
EUR million | Note | 31 Dec. 2022 | 31 Dec. 2021
EQUITY AND LIABILITIES |  |  |
EQUITY |  |  |
Share capital |  | 83.0 | 83.0
Treasury shares |  | –124.5 | –126.1
Reserve for invested non-restricted equity |  | 90.9 | 90.9
Other reserves |  | 373.9 | 373.9
Retained earnings |  | 823.2 | 776.1
Equity attributable to equity holders of the parent | 4.2, 7.3 | 1,246.5 | 1,197.8
Non-controlling interests |  | 5.4 | 6.3
TOTAL EQUITY |  | 1,251.9 | 1,204.1
LIABILITIES |  |  |
Non-current liabilities |  |  |
Deferred tax liabilities | 8.1.2 | 25.7 | 25.3
Interest-bearing financial liabilities | 7.4.2, 7.4.3 | 995.0 | 1,141.4
Lease liabilities, interest-bearing | 7.4.2, 7.4.3 | 70.8 | 73.4
Trade payables and other liabilities | 6.3, 7.4.3, 7.4.4 | 30.3 | 41.0
Pension obligations | 4.3 | 12.9 | 14.4
Provisions | 8.2 | 2.9 | 2.8
|  | 1,137.7 | 1,298.3
Current liabilities |  |  |
Interest-bearing financial liabilities | 7.4.2, 7.4.3 | 275.0 | 100.2
Lease liabilities, interest-bearing | 7.4.2, 7.4.3 | 20.4 | 18.1
Trade and other payables | 6.3, 7.4.3 | 412.9 | 401.6
Tax liabilities |  | 2.1 | 2.9
Provisions | 8.2 | 0.8 | 3.1
|  | 711.2 | 526.0
TOTAL LIABILITIES |  | 1,848.9 | 1,824.3
TOTAL EQUITY AND LIABILITIES |  | 3,100.8 | 3,028.4

FINANCIAL STATEMENTS 2022
13

Consolidated cash flow statement |  |
EUR million | Liite | 2022 | 202
Cash flow from operating activities |  |  |
Profit before tax |  | 456.0 | 418.4
Adjustments |  |  |
Depreciation, amortisation and impairment | 5.1 | 263.4 | 266.6
Financial income (-) and expenses (+) | 7.4.1 | 13.1 | 11.9
Gains (-) and losses (+) on the disposal of fixed assets |  | –0.1 | –1.8
Increase (+) / decrease (-) in provisions on the income statement |  | –2.2 | 2.6
Other adjustments |  | –16.0 | –15.6
|  | 258.2 | 263.7
Change in working capital |  |  |
Increase (-) / decrease (+) in trade and other receivables |  | –16.2 | –31.7
Increase (-) / decrease (+) in inventories |  | –13.3 | –17.6
Increase (+) / decrease (-) in trade and other payables |  | 2.0 | 52.6
|  | –27.5 | 3.3
Dividends received |  | 0.4 | 0.6
Interest received |  | 2.3 | 2.8
Interest paid |  | –12.6 | –17.4
Taxes paid |  | –85.0 | –75.7
Net cash flow from operating activities |  | 591.8 | 595.7

Consolidated income statement and statement of comprehensive
income
FINANCIAL STATEMENTS 2022
14

Consolidated cash flow statement |  |
EUR million | Liite | 2022 | 2021
Cash flow from investing activities |  |  |
Equity investments and business acquisitions | 3 | –20.5 | –4.5
Contingent consideration of subsidiaries |  | –0.1 | –1.1
Investments in associates |  | 0.0 | –9.7
Other investments |  | –0.3 | –0.4
Capital expenditure |  | –270.9 | –258.8
Loans granted | 3 |  | –0.5
Repayment of loan receivables |  | 0.1 |
Proceeds from disposal of subsidiaries and businesses |  | –0.2 |
Proceeds from disposal of other investments |  | 0.0 | 0.1
Proceeds from disposal of tangible and intangible assets |  | 0.1 | 0.8
Net cash flow used in investing activities |  | –291.9 | –274.1
Cash flow before financing activities |  | 299.9 | 321.6
Cash flow from financing activities |  |  |
Proceeds from long-term borrowings |  |  | 100.4
Repayment of long-term borrowings |  | –100.3 | –174.1
Increase (+) / decrease (-) in short-term borrowings |  | 124.8 | –19.6
Repayment of lease liabilities |  | –24.9 | –23.1
Dividends paid |  | –328.1 | –310.9
Net cash used in financing activities |  | –328.5 | –427.4
Change in cash and cash equivalents |  | –28.6 | –105.8
Translation differences |  | –0.1 | –0.2
Cash and cash equivalents at the beginning of the period |  | 114.1 | 220.1
Cash and cash equivalents at the end of the period |  | 85.4 | 114.1

FINANCIAL STATEMENTS 2022
15

Consolidated statement of changes in equity |  |  |  |  |  |  |  |
|  | Equity attributable to equity holders of the parent |  |  |  |  |  |
|  |  | Reserve for |  |  |  |  |
|  |  | invested |  |  |  | Non- |
| Share | Treasury | non-restricted | Other | Retained | controlling | Total
EUR million | capital | shares | equity | reserves | earnings | Total | interests | equity
Balance at 1 January 2021 | 83.0 | –128.4 | 90.9 | 375.7 | 761.5 | 1,182.7 | 1.5 | 1,184.2
Profit for the period |  |  |  |  | 343.6 | 343.6 | –0.2 | 343.5
Other comprehensive income |  |  |  |  |  |  |  |
Translation differences |  |  |  |  | –1.2 | –1.2 | 0.1 | –1.2
Cash flow hedge |  |  |  | 0.9 |  | 0.9 |  | 0.9
Remeasurements of the net defined benefit liability |  |  |  | –2.8 |  | –2.8 |  | –2.8
Total other comprehensive income |  |  |  | –1.9 | –1.2 | –3.1 | 0.1 | –3.0
Total comprehensive income |  |  |  | –1.9 | 342.4 | 340.6 | –0.1 | 340.4
Dividend distribution |  |  |  |  | –312.4 | –312.4 | –0.1 | –312.5
Share-based compensation |  | 2.3 |  |  |  | 2.3 |  | 2.3
Acquisition of subsidiary with non-controlling interests |  |  |  |  |  |  | 5.1 | 5.1
Other changes |  |  |  |  | –15.5 | –15.5 |  | –15.5
Balance at 31 December 2021 | 83.0 | –126.1 | 90.9 | 373.9 | 776.1 | 1,197.8 | 6.3 | 1,204.1
Profit for the period |  |  |  |  | 374.1 | 374.1 | –1.3 | 372.8
Other comprehensive income |  |  |  |  |  |  |  |
Translation differences |  |  |  |  | –4.8 | –4.8 | 0.0 | –4.7
Cash flow hedge |  |  |  | –0.3 |  | –0.3 |  | –0.3
Remeasurements of the net defined benefit liability |  |  |  | 0.4 |  | 0.4 |  | 0.4
Total other comprehensive income |  |  |  | 0.0 | –4.8 | –4.7 | 0.0 | –4.7
Total comprehensive income |  |  |  | 0.0 | 369.3 | 369.3 | –1.3 | 368.0
Dividend distribution |  |  |  |  | –328.5 | –328.5 | –0.1 | –328.7
Share-based compensation |  | 1.6 |  |  |  | 1.6 |  | 1.6
Acquisition of subsidiary with non-controlling interests |  |  |  |  |  |  | 0.5 | 0.5
Other changes |  |  |  |  | 6.4 | 6.4 |  | 6.4
Balance at 31 December 2022 | 83.0 | –124.5 | 90.9 | 373.9 | 823.2 | 1,246.5 | 5.4 | 1,251.9


FINANCIAL STATEMENTS 2022
16
Notes to the consolidated financial statements
Contents
THE REPORT OF THE BOARD OF
DIRECTORS
FINANCIAL STATE-
MENTS
Consolidated Financial Statements
1 GENERAL ACCOUNTING PRINCIPLES
1.1 Basic information about the Group
Information about the parent company:
Elisa Corporation
Domicile: Helsinki, Finland
Registered address: Ratavartijankatu 5, 00520 Helsinki
Business ID: 0116510–6
Elisa Corporation (“Elisa” or “the Group”) engages in
telecommunications activities and provides ICT and online
services in Finland and in selected international market
areas.
The shares of the parent company, Elisa Corporation, have
been listed on the Nasdaq Helsinki since 1997.
On 26 January 2023, Elisa Corporation’s Board of Directors
accepted this financial statement for publication. A copy of
financial statement is available from Elisa’s head office at
Ratavartijankatu 5, Helsinki, or on the company’s website at
www.elisa.com.
1.2 Basis of preparation of
financial statements
Elisa’s consolidated financial statements are prepared
in accordance with International Financial Reporting
Standards (IFRS), including adherence to IAS and IFRS
standards and SIC and IFRIC interpretations valid as at
31 December 2022. In the Finnish Accounting Act and the
provisions issued pursuant to it, the Inter-national Financial
Reporting Standards refer to standards and interpretations
that have been approved for application in the EU according
to the procedures provided for in EU regulation (EC) No.
1606/2002 (“IFRS”). The notes to the consolidated financial
statements are also compliant with Finnish accounting and
corporate legislation.
The consolidated financial statements have been
prepared under the historical cost convention with the
exception of financial assets and liabilities, share-based
payments, pension liabilities and derivatives recognised
at fair value through profit or loss or statement of
comprehensive income. The financial statements are
presented in EUR million and the figures are rounded to
one decimal place.
1.2.1 Accounting principles,
structure and presentation of the
consolidated financial statements
The accounting policies and descriptions of management’s
judgment-based conclusions are mainly found in the notes
to the financial statements, which are listed in the table
below. Only some general accounting policies are described
in this section.

Summary of notes, related to accounting principles for
the consolidated financial statements of Elisa Group
Accounting principle Note
Operating segments 2.1
Revenue from contracts with customers 2.3
Other operating income 2.4
Research and development costs 2.5
Earnings per share 2.6
Business acquisitions and disposals 3
Share-based incentives 4.2
Pension obligations 4.3
Property, plant and equipment 5.2
Right-of-use assets 5.3
Intangible assets 5.4
Goodwill 5.4.1
Inventories, trade and other receivables,
trade and other liabilities 6
Financial assets and liabilities 7.4
Derivative instruments 7.4.4
Income taxes 8.1.1
Deferred tax assets and liabilities 8.1.2
Provisions 8.2
Consolidation principles, subsidiaries 8.3.1
Consolidation principles, joint arrangements 8.3.2
Off-balance sheet leases 8.4
The symbols below indicate the figures mentioned in the
notes that match the balances in the income statement,
statement of financial position and the cash flow statement.
I/S
= Income Statement
B/S = Balance Sheet
C/F = Cash Flow Statement
FINANCIAL STATEMENTS 2022
17
Consolidated income statement and statement of com-
prehensive income
Consolidation principles
The consolidated financial statements include the parent
company, Elisa Corporation, subsidiaries, associates and
joint arrangements as described in detail in Notes 8.3.1 and
8.3.2.
Foreign currency items
Functional currency
The consolidated financial statements are presented in
euros, which is the functional and presentation currency of
the parent company.
Transactions in foreign currencies
Foreign currencies transactions are translated into
functional currency using the exchange rates prevailing on
the dates of the transactions. Monetary items have been
translated into the functional currency at the exchange
rates prevailing at the end of the reporting period.
Non-monetary items denominated in foreign currencies
are translated at the exchange rate at the date of the
transaction, excluding items measured at fair value that are
translated at the exchange rates prevailing on the valuation
date. Gain and losses arising from the currency translations
are recognised through profit or loss. Foreign exchange gain
and losses resulting from operating activities are included
in the respective items above operating profit. Foreign
exchange gain and losses from the liabilities denominated
in a foreign currency are included in financial income and
expenses, with the exception for exchange rate differences
on foreign currency items that constitute a part of the net
investment made in a foreign unit. These exchange rate
differences are recognised in other comprehensive income
and accumulated exchange rate differences are included in
the translation difference presented in shareholders’ equity.
Translation of foreign Group
companies’ financial statements
The income statements of foreign subsidiaries that use a
functional currency other than the Group’s presentation
currency have been converted into euro at the average
exchange rate prevailing during the year, and statements
of financial position at the exchange rate prevailing at
the end of the reporting period. The different exchange
rates applicable to the conversion of profit or loss on
the income statement and balance sheet result in a
translation difference recognised in shareholders’ equity
on the balance sheet, and any change in this difference is
recognised in other comprehensive income. Translation
differences arising from the elimination of the acquisition
cost of foreign subsidiaries, as well as translation
differences arising from equity items accumulated after the
acquisition, are recognised in other comprehensive income.
When a subsidiary is divested in full or in part, accumulated
translation differences are recognised in the income
statement as part of the sales gain or loss.
Goodwill arising from the acquisition of foreign entities
and the fair value adjustments made to the book values
of the assets and liabilities of such foreign entities upon
acquisition is treated as assets and liabilities belonging to
the foreign entities. These are converted into euro at the
exchange rate prevailing at the end of the reporting period.
1.2.2 Accounting principles that require
management’s judgement and key
sources of estimation uncertainty
Preparation of the financial statements requires the Group’s
management to make certain estimates and consideration.
In addition, judgement in applying the accounting policies
is required. This applies particularly to cases in which
valid IFRS standards provide for alternative methods of
recognition, measurement or presentation.
The estimates made in connection with the preparation
of financial statements are based on the management’s
best view at the end of the financial period, and the
outcome may differ from the estimates and assumptions.
Estimates are based on historical experience and
assumptions concerning the future that are believed
to be reasonable at the end of the financial period. The
Group regularly assesses the realisation of estimates and
assumptions, as well as changes in the underlying factors.
Any changes in estimates and assumptions are recorded for
the financial year during which the estimate or assumption
was adjusted, and for all subsequent periods.
Significant areas of estimation and uncertainty in
applying accounting policies that have the most significant
impact on amounts recognised in the financial statements
are related to business combinations (3), impairment
of intangible assets (5.4.1), share-based payments (4.2),
recognition of net defined pension liability (4.3) and
recognition of deferred tax assets (8.1.2).
The potential climate change-related risks and
opportunities to which the Group is exposed are disclosed
in the Group’s Sustainability 2022 report on pages 35 and
75. Management has exercised judgement in concluding
that there is no other material financial impact from
climate-related risks and opportunities that needs to
be recognised in the consolidated financial statements.
As the future impact of climate change will depend on
environmental, regulatory and other factors outside of the
Group’s control that are not currently known, management
will continue to monitor these estimates.
1.3 Applied new and revised standards
The consolidated financial statements have been prepared
in accordance with the same accounting policies used in
2021, with the exception for the following new standards,
interpretations and revisions to existing standards that
the Group has applied since 1 January 2022. Revisions did
not have a material impact on the consolidated financial
statements.
FINANCIAL STATEMENTS 2022
18
• Amendments to IAS 16 Property, Plant and Equipment.
Under the amendments, proceeds from selling items
before the related item of PPE is available for use should
be recognized in profit or loss, together with the costs of
producing those items.
• Amendments to IAS 37 Provisions, Contingent Liabilities
and Contingent Assets. When an onerous contract is
accounted for basing on the costs of fulfilling the contract,
the amendments clarify that these costs comprise both
the incremental costs and an allocation of other direct
costs.
• Annual Improvements to IFRS Standards 2018–2020
On 1 January 2023, the Group will adopt the following
new standard, providing this is approved by the EU by
the planned date of adoption. Revisions are not expected
to have a material impact on the consolidated financial
statements.
• IFRS 17 Insurance Contracts. The new standard for
insurance contracts will help investors and other parties
understand better insurers’ risk exposure, profitability
and financial position. This standard replaces IFRS 4
standard.
• Amendments to IAS 1 Presentation of Financial
Statements. The amendments are to promote
consistency in application and clarify the requirements
on determining if a liability is current or non-current.
The amendments clarify the application of materiality
to disclosure of accounting policies to help companies
provide useful accounting policy disclosures.
• Amendments to IAS 8 Accounting policies, Changes in
Accounting Estimates and Errors. The amendments clarify
how companies should distinguish changes in accounting
policies from changes in accounting estimates, with a
primary focus on the definition of and clarifications on
accounting estimates.
• Amendments to IAS 12 Income Taxes. The amendments
narrow the initial recognition exemption (IRE) and clarify
that the exemption does not apply to transactions such
as leases and decommissioning obligations which give
rise to equal and offsetting temporary differences.
On 1 January 2024, the Group will adopt the following
new standard, providing this is approved by the EU by
the planned date of adoption. Revisions are not expected
to have a material impact on the consolidated financial
statements.
• Amendments to IFRS 16 Leases. The amendments
introduce a new accounting model for variable payments
and will require seller-lessees to reassess and potentially
restate sale-and-leaseback transactions entered into
since 2019.
• Amendments to IAS 1 Presentation of Financial
Statements. The amendments specify that covenants to
be complied with after the reporting date do not affect
the classification of debt as current or non-current at
the reporting date. The amendments require to disclose
information about these covenants in the notes to the
financial statements.
FINANCIAL STATEMENTS 2022
19
2.1 Operating segments and geographical areas
The Group has two reporting segments: Consumer Customers and Corporate Customers. The organisational and management structure of Elisa Group is based on a customer-oriented operating
model. The reportable segments are based on the internal reporting provided to management.
The Consumer Customers segment provides consumers with telecommunications and communications services, such as fixed and mobile subscriptions with supplementary digital services, cable-
tv subscriptions, Elisa Viihde entertainment service and Elisa Kirja e-reading service.
The Corporate Customers segment provides corporate and public administration organisations with services such as IT and communication solutions for the digital environment as well as fixed
and mobile subscriptions. The Corporate Customers segment provides worlwide services such as video conferencing services, solutions for automation of network management and operation for
mobile operators, and IoT solutions for industry.
Operating segments:
2022
EUR million
Consumer
Customers
Corporate
Customers Unallocated
Group
Total
Revenue 1,300.9 828.6 2,129.5
EBITDA 495.7 237.6 733.3
Depreciation, amortisation and impairment –174.0 –89.5 –263.4
EBIT 321.7 148.1 469.8
Financial income 5.6 5.6
Financial expenses –18.7 –18.7
Share of associated companies' profit –0.7 –0.7
Profit before tax 456.0
Investments 190.6 99.1 289.7
Assets 1,891.9 1,082.4 126.5 3,100.8
2021
EUR million
Consumer
Customers
Corporate
Customers Unallocated
Group
Total
Revenue
(1
1,242.5 755.4 1,997.9
EBITDA
(1
476.0 221.4 697.4
Depreciation, amortisation and impairment
(1
–174.0 –92.5 –266.6
EBIT
(1
302.0 128.8 430.8
Financial income 4.6 4.6
Financial expenses –16.5 –16.5
Share of associated companies' profit –0.5 –0.5
Profit before tax 418.4
Investments 168.7 96.3 265.1
Assets 1,822.3 1,051.2 154.9 3,028.4
1)
Allocation rules of the revenue and expenses allocated to the segments have been specified in 2022 and the comparable figures have been
updated to reflect the advanced allocations. In the comparison period 1–12/2021, Consumer Customers revenue was EUR 1,241.3 million;
EBITDA was EUR 475.1 million; depreciation, amortisation and impairment totalled EUR –160.7 million; and EBIT was EUR 314.4 million. In the
comparison period 1–12/2021, Corporate Customers revenue was EUR 756.6 million; EBITDA was EUR 222.3 million; depreciation, amortisation
and impairment totalled EUR –105.8 million; and EBIT was EUR 116.5 million.
Consolidated statement
of financial position
Consolidated cash flow statement
Revenue 2022
Consumer Customers 1,300.9
Corporate Customers 828.6
EBITDA 2022
Consumer Customers 495.7
Corporate Customers 237.6
2 Operational result
FINANCIAL STATEMENTS 2022
20
Geographical areas
2022
EUR million Finland
Rest of
Europe
Other
countries
Group
total
Revenue 1,782.2 295.7 51.7 2,129.5
Assets 2,578.7 489.3 32.8 3,100.8
2021
EUR million Finland
Rest of
Europe
Other
countries
Group
total
Revenue 1,702.5 251.2 44.2 1,997.9
Assets 2,551.3 446.5 30.6 3,028.4
Accounting Principles – Operating Segments:
The segments are controlled by segment-specific performance reporting that includes external revenue, EBITDA, EBIT and capital investments. Financial items, share of associated companies’
profit and income taxes are not allocated to operating segments. The costs of production and support functions are allocated to operating segments on the matching principle. Operations in
Estonia are divided into the Consumer Customers and Corporate Customers operating segments on the basis of customer accounts.
Segment assets consist of intangible and tangible assets, right-of-use assets, inventories, trade and other non-interest bearing receivables. Deferred tax assets, investments in associated
companies, other investments, interest-bearing receivables, financial items and income tax receivables are not included in segment assets. Liabilities are not allocated to operating segments.
The accounting principles of the segments are the same as those used in the preparation of the financial statements.
The reported geographical areas are Finland, Rest of Europe and Other Countries. Revenues are presented on the basis of customer location. The assets are presented on the basis of their
location.
FINANCIAL STATEMENTS 2022
21
2.2 Items affecting comparability
Elisa uses comparable key figures in its financial reporting to describe the financial development of its business and increase comparability between different periods.
Exceptional transactions outside the ordinary course of business are treated as items affecting comparability. Such items, as identified by the Group, are for example capital gains and losses from
divestments of the assets and businesses, acquisition costs of assets and businesses, impairments, restructuring expenses and costs of legislative changes, damages or litigations.
Income statement
EUR million 2022 2021
Restructuring costs –2.0 –8.4
Items affecting comparability in EBITDA, EBIT and profit before tax –2.0 –8.4
Income taxes on items affecting comparability 0.4 1.6
Items affecting comparability in profit for the period –1.6 –6.7
Consolidated statement of changes in equity
FINANCIAL STATEMENTS 2022
22
EUR million 2022 2021
Comparable EBITDA
I/S
EBITDA 733.3 697.4
Items affecting comparability in EBITDA 2.0 8.4
735.3 705.7
Comparable EBIT
I/S
EBIT 469.8 430.8
Items affecting comparability in EBIT 2.0 8.4
471.8 439.2
Comparable profit before tax
I/S
Profit before tax 456.0 418.4
Items affecting comparability in profit before tax 2.0 8.4
458.0 426.8
Comparable profit for the period
I/S
Profit for the period 372.8 343.5
Items affecting comparability in profit for the period 1.6 6.7
374.4 350.2
Comparable profit for the period attributable to equity holders of the parent
Comparable profit for the period 374.4 350.2
Non-controlling interests –1.3 –0.2
375.7 350.4
Comparable earnings per share, EUR
Comparable profit for the period attributable to equity holders of the parent 375.7 350.4
Average number of outstanding shares, diluted (1,000 shares) 160,253 160,174
2.34 2.19
FINANCIAL STATEMENTS 2022
23
Cash flow
EUR million 2022 2021
Investment in shares and business combinations 20.9 16.2
Items affecting comparability in cash flow before financing 20.9 16.2
The main item affecting comparability in 2022 was the acquisition of Frinx for EUR 12.5 million and Cardinality for EUR 8.2 million.
The main item affecting comparability in 2021 was the acquisition of sedApta for EUR 9.7 million and TenForce NV for EUR 3.4 million.
Comparable cash flow after investments
C/F Cash flow before financing 299.9 321.6
Items affecting comparability in cash flow before financing 20.9 16.2
320.9 337.8
FINANCIAL STATEMENTS 2022
24
20222021202020192018
Development of revenue, EUR million
1,832
1,844
1,895
1,998
2,130
0
500
1,000
1,500
2,000
2,500
2.3 Revenue from contracts with customers
Division of Group’s revenue
EUR million 2022 2021
Rendering of services 1,726.8 1,642.0
Sale of equipment 402.7 356.0
I/S
2,129.5 1,997.9
EUR million 2022 2021
Mobile telecommunications 1,252.5 1,179.7
Fixed-network broadband and others 877.0 818.3
I/S
2,129.5 1,997.9
Notes
FINANCIAL STATEMENTS 2022
25
Accounting Principles – Revenue from contracts with customers:
The revenue of consumer customers mainly consists of fixed and mobile subscriptions with supplementary digital services, cable-tv subscriptions, Elisa Viihde entertainment service and Elisa
Kirja e-reading service. Consumer customer contracts are typically standard contracts that are treated as separate performance obligations.
Customer contract may include several performance obligations, and Elisa may agree on the delivery or rendering of several products, services or access rights (service bundle). In that case,
prices specified in the contract are used as transaction price, which is allocated to performance obligations on a relative stand-alone selling price basis.
The revenue of corporate customers mainly consists of fixed and mobile subscriptions with supplementary digital services, IT and communication solutions for the digital environment, video
conferencing services, solutions for automation of network management and operation for mobile operators and IoT solutions for industry. Contracts with corporate customers typically meet
the criteria laid down for a contract negotiated as a single package, in which case the revenue will be allocated to the goods and services based on the prices agreed with each customer.
A performance obligation may be fulfilled and revenue recognised over time or at certain points of time. The key criterion for the revenue recognition is the transfer of control. For performance
obligations that are satisfied at a certain point of time, such as equipment, the customer is deemed to gain control at the entry to contract and revenue is recognised when the equipment is
transferred to the customer. Service contracts mainly comprise performance obligations that are satisfied over time. The performance is carried out, and revenue is recognised over time as the
services are provided.
Fixed-term service contracts are recognised over the contract period and the opening fees and related expenses, as well as discounts granted, are allocated to the entire contract period.
Incremental costs of obtaining a fixed-term contract such as sales and represent commissions are capitalised and accrued as an expense during the contract period when these commissions
relate directly to a contract that can be specifically identified. Service contracts valid until further notice are recognised over time. The opening fees and related expenses are recognised at the
time when the service is connected.
The Group provides consumer customers with the various payment methods granting possibility to purchase equipment on 12–36 months credits. Revenue for equipment is recognised at the
time of the sale regardless of whether the customer pays for the device fully at the time of sale or by monthly payments. Based on management’s judgement, the contracts do not include a
significant financing component.
Revenue from prepaid mobile phone cards is recognised over the period of realised use of the cards. Service fees invoiced from a customer on behalf of a third-party content service provider
are not recognised as revenue.
As a rule, the customer has 4 weeks to cancel the service contract made at a distance sale and return the purchased equipment. In principle, there is no right of cancellation for equipment
bought from an Elisa shop. Based on historical experience the number of refunds is expected to be low due to which the Group has not recognised a refund liability for the amounts expected to
be refunded and revenue has not been adjusted by the estimated number of refunds.
Customers participating in loyalty programmes are entitled to certain discounts on services and products provided by the Group. Discounts earned by the customers are recognised as
reduction of revenue. The Group does not currently have any valid loyalty programmes.
FINANCIAL STATEMENTS 2022
26
1. General accounting principles
2.4 Other operating income
EUR million 2022 2021
Gain on disposals of property, plant and equipment 0.2 1.9
Government grants 0.4 0.3
Other items
(1
6.3 6.9
I/S
6.9 9.0
1)
Other items include rental income from the real estate and other income not associated with ordinary operating activities.
Accounting Principles – Other operating income:
Other operating income includes non-operating income, such as capital gain on the disposal of tangible and intangible assets, subsidiaries and businesses, and rental income from real estate.
Government grants associated with development projects are recognised as other operating income when the related costs are recognised as expenses. Government grants associated with
capitalised development costs are recorded as a reduction of capital expenditure.
FINANCIAL STATEMENTS 2022
27
2.5 Operating expenses
Materials and services
EUR million
2022 2021
Purchases of materials, supplies and goods 556.4 522.3
Change in inventories –8.8 –10.6
External services 272.9 251.2
Foreign exchange gains and losses 0.2 0.6
I/S
820.8 763.6
Gains and losses arising from foreign currency translations are recognised in accordance with their nature either in materials and services or financial income and expenses.
Employee expenses
More detailed analysis of employee expenses is included in Note 4.
Auditor fees
EUR million
2022 2021
Auditing 0.4 0.4
Tax advisory services 0.0 0.0
Other services 0.0 0.1
0.4 0.4
In 2022, non-audit fees charged by KPMG Oy Ab were EUR 0.0 (0.1) million.
Research and development costs
EUR million
2022 2021
Research and development costs recognised as expenses 13.4 9.5
Capitalised development costs 8.0 6.6
21.4 16.1
The focus areas for the research and development activities in 2022 were of the development of a customer relationship management system, production and quality management software for
the manufacturing industry, as well as the development of network software solutions for telecom operators.
Accounting Principles – Research and development:
Research costs are recorded as expenses in the income statement. Development costs are capitalised from the date the product is technically feasible, it can be utilised commercially and the
asset is expected to generate future economic benefit and the Group has both intention and the resources to complete the development and use or sell the asset. Capitalised development
costs include those material, labour and testing costs and any capitalised borrowing costs that are directly attributable to bringing the asset to its working condition for its intended use.
Otherwise, development costs are recorded as an expense. Development costs initially recognised as expenses cannot be capitalised subsequently.
1.1 Basic information about the Group
FINANCIAL STATEMENTS 2022
28
2.6 Earnings per share
Earnings per share, basic 2022 2021
I/S
Net profit for the period attributable to equity holders of the parent (EUR million) 374.1 343.6
Weighted average number of shares outstanding (1,000 shares) 160,253 160,174
Earnings/share, basic (EUR/share) 2.33 2.15
Diluted earnings per share
2022
2021
I/S
Net profit for the period attributable to equity holders of the parent (EUR million)
374.1
343.6
Weighted average number of shares outstanding (1,000 shares)
160,253
160,174
Impact of share-based incentive plans
157
Weighted average number of shares outstanding adjusted by dilutive effect (1,000 shares)
160,410
160,174
Diluted earnings per share (EUR/share)
2.33
2.15
Accounting principles – Earnings per share:
Basic earnings per share are calculated by dividing the net profit for the period attributable to the parent company’s equity holders by the weighted average number of shares outstanding
during the period.
Diluted earnings per share are calculated on the same basis as earnings per basic share, except for the dilutive effect of converting all dilutive potential shares into basic shares.
1.2 Basis of presentation of financial statements
FINANCIAL STATEMENTS 2022
29
3. Business acquisitions and disposals
Acquired businesses in 2022
Acquisition of Frinx s.r.o.
On 31 March 2022, Elisa Polystar acquired Frinx s.r.o., a telecom network automation software supplier based in Slovakia. Frinx’s products and software complement Elisa Polystar’s
zero touch automation and analytics offering that helps communication service providers automate the management process of telecom networks in a multi-vendor environment.
The acquisition price was EUR 14.4 million including the contingent consideration of EUR 1.1 million. EUR 0.5 million of the total acquisition price was allocated to software, which will be
amortised over four years.The acquisition resulted in EUR 12.9 million of goodwill relating to Group’s growth in digital services internationally and strengthening Elisa IndustIQ business.
The calculation of the purchase price allocation is preliminary, as the valuation of the acquired net assets has not been fully completed.
The acquired company has been consolidated from 1 April 2022 onwards. External revenue after the acquisition was EUR 2.3 million, and the impact on Group’s profit for the period
was EUR 0.5 million. Had the acquisition been made as of the beginning of the year 2022, the impact on Group revenue would have been EUR 2.7 million and the effect on profit for the
period EUR 0.3 million.
Consideration transferred
EUR million Preliminary
Cash paid 13.4
Contingent consideration 1.1
Total acquisition price 14.4
Analysis of net assets acquired
EUR million
Tangible assets 0.0
Intangible assets 0.5
Trade and other receivables 0.8
Cash and cash equivalents 1.0
Deferred tax liabilities –0.1
Trade payables and other liabilities –0.4
Tax liabilities –0.3
1.5
Effects of acquisition on cash flow
EUR million
Acquisition price paid in cash –13.4
Cash and cash equivalents of the acquired entity 1.0
–12.3
Goodwill arising from business combination
EUR million
Consideration transferred 14.4
Identifiable net assets of the acquired entity 1.5
Goodwill 12.9
EUR 0.2 million of acquisition-related costs, such as professional fees, is recorded in other operating expenses.
1.3 Applied new and revised standards
FINANCIAL STATEMENTS 2022
30
Acquisition of Cardinality group
On 4 August 2022, Elisa acquired a UK-based Cardinality Ltd. Cardinality is a supplier of cloud-native data management (DataOps), service assurance and customer experience analytics for
communications service providers (CSPs) globally.
The acquisition price was EUR 10.0 million including the contingent consideration of EUR 0.4 million. EUR 1.5 million of the total acquisition price was allocated to software, which will be
amortised over four years. The acquisition resulted in EUR 8.7 million of goodwill relating to the Group’s growth in digital services internationally and acceleration of its telecom software business
development under Elisa Polystar. The calculation of the purchase price allocation is preliminary, as the valuation of the acquired net assets has not been fully completed.
The acquired companies have been consolidated from 1 August 2022 onwards. External revenue after the acquisition was EUR 1.5 million, and the impact on Group’s profit for the period was EUR
–0.7 million. Had the acquisition been made as of the beginning of the year 2022, the impact on Group revenue would have been EUR 3.4 million and the effect on profit for the period EUR –2.1
million.
Consideration transferred
EUR million Preliminary
Cash paid 9.6
Contingent consideration 0.4
Total acquisition price 10.0
Analysis of net assets acquired
EUR million
Tangible assets 0.0
Intangible assets 1.5
Trade and other receivables 0.5
Tax receivables 0.5
Cash and cash equivalents 1.4
Deferred tax liabilities –0.3
Interest-bearing liabilities –0.3
Trade payables and other liabilities –2.1
1.2
Effects of acquisition on cash flow
EUR million
Acquisition price paid in cash –9.6
Cash and cash equivalents of the acquired entities 1.4
–8.2
Goodwill arising from business combination
EUR million
Consideration transferred 10.0
Identifiable net assets of the acquired entities 1.2
Goodwill 8.7
EUR 0.4 million of acquisition-related costs, such as professional fees, is recorded in other operating expenses.
FINANCIAL STATEMENTS 2022
31
Acquired businesses in 2021
Acquisition of TenForce NV
On 31 August 2021, Elisa acquired a majority stake of 50.1 per cent in Belgian TenForce NV. TenForce is a provider of environmental, health, safety and quality performance (EHSQ) and
operational risk management software. TenForce primarily serves large global industrial customers with a SaaS model. The acquisition is consistent with Elisa’s strategy to grow digital businesses
internationally and to accelerate the Elisa IndustrIQ business. TenForce provides Elisa with cross-selling opportunities across its customer base and brings a complementary offering and skills,
especially with its deep understanding of process industries and their critical features.
The price paid for the acquisition carried out as directed share issue was EUR 15.1 million, of which EUR 10 million was carried out as a directed share issue. EUR 0.8 million of the total acquisition
price was allocated to the customer base, which will be amortised over four years, and EUR 0.6 was allocated to software, which will also be amortised over four years. The acquisition resulted in
EUR 9.1 million of goodwill relating to Group’s growth in digital services internationally and strengthening Elisa IndustIQ business.
The acquisition generated a non-controlling interest amounting to EUR 4.9 million, which is included in the Non-controlling interest balance sheet item. The non-controlling interest is measured at
a proportionate share of the acquiree’s identifiable net assets.
The acquisition contract includes an option for Elisa to redeem and for non-controlling interests conditional right to sell the remaining 49.9 per cent of the shares in 2026. The liability for the
redemption of the remaining shares has been recognised in the financial statements. The initial recognition of the liability and any changes in it will be treated as equity transactions.
The acquired company has been consolidated from 1 September 2021 onwards. External revenue after the acquisition was EUR 1.9 million, and the impact on Group’s profit for the period was
EUR –0.4 million. Had the acquisition been made as of the beginning of the year 2021, the impact on Group revenue would have been EUR 5.5 million and the effect on profit for the period EUR
–0.6 million.
FINANCIAL STATEMENTS 2022
32
Consideration transferred
EUR million
Carrying
amount
Cash paid 15.1
Total acquisition 15.1
Analysis of net assets acquired
EUR million
Tangible assets 0.1
Right-of-use assets 1.0
Customer base 0.8
Intangible assets 1.6
Trade and other receivables 1.0
Cash and cash equivalents 11.7
Deferred tax liabilities –0.3
Interest-bearing liabilities –0.3
Lease liabilities –1.0
Trade payables and other liabilities –3.6
Tax liabilities –0.1
10.9
Effects of acquisition on cash flow
EUR million
Acquisition price paid in cash –15.1
Cash and cash equivalents of the acquired entity 11.7
–3.4
Goodwill arising from business combination
EUR million
Consideration transferred 15.1
Identifiable net assets of the acquired entity 10.9
Non-controlling interest's proportionate share of identifiable net assets acquired –4.9
Goodwill 9.1
EUR 0.2 million of acquisition-related costs, such as professional fees, were recorded in other operating expenses in 2021.
Acquisition of Process Data Control Corp
In November 2021, TenForce NV’s subsidiary TenForce USA LLC, acquired Process Data Control Corp. The acquisition price was EUR 1.5 million. The acquisition resulted in
EUR 1.5 million of goodwill. EUR 0.1 million of acquisition-related costs, such as professional fees, were recorded in other operating expenses in 2022.
FINANCIAL STATEMENTS 2022
33
Disposals of businesses in 2022
Withdrawal from business in Russia
Elisa sold OOO LNR in Russia on 7 July 2022.The divestment of Polystar Ryssland LLC is in progress. The costs of the withdrawal from the Russian operations, EUR 1.1 million, are presented in other
operating expenses.
Disposals of businesses in 2021
There were no significant disposals during the reporting period.
FINANCIAL STATEMENTS 2022
34
Accounting principles – Business acquisitions and disposals:
Subsidiaries are consolidated from the date the Group obtains control, and divested companies until the loss of control.
Acquisitions are measured at amortised costs. Identifiable assets acquired and assumed liabilities are measured at their fair value on the acquisition date.
Possible investments in non-controlling interests are measured either at a proportionate share of the acquiree’s identifiable net assets or at fair value. The method to be used is selected on a
case-by-case basis. Subsequent changes in non-controlling interests are treated as equity transactions.
In business combinations carried out in stages, previously held equity share in the acquiree is measured at fair value and the resulting gain or loss is recognised through profit or loss.
The acquisition price consists of the fair value of cash and contingent consideration transferred. The amount of the acquisition price that exceeds the fair value of the acquired net assets is
recognised as goodwill. Additional information regarding valuation and impairment testing of goodwill is available under note 5.4.1.
The changes in contingent consideration are expensed through profit and loss. Acquisition-related costs, such as consulting fees and transfer tax, are accounted for as expenses for the periods,
when the costs were incurred and the services received. The costs are presented as Other operating expenses in the income statement.
In connection with loss of control, any investment retained in a former subsidiary is measured at fair value through profit or loss at the date of transaction. Changes in ownership interest that
do not result in a loss of control are accounted for as equity transactions.
Accounting policies that require management’s judgements – Acquisitions:
The identifiable assets and liabilities acquired in a business combination are measured at fair value at the acquisition date. When determining the fair value of the acquired net assets,
consideration and estimates may be required. Estimates and judgement are based on the management’s best view of the situation at the time of the acquisition.
FINANCIAL STATEMENTS 2022
35
4.1 Employee expenses
EUR million
2022 2021
Salaries and wages
314.4
304.7
Share-based payments
14.0
8.0
Pension expenses - defined contribution plans
44.2
40.4
Pension expenses - defined benefit plans
0.3
0.2
Other employee costs
21.8
20.5
I/S
394.8
373.8
Number of personnel at the end of the reporting period
2022 2021
Consumer Customers
2,939
2,845
Corporate Customers
2,684
2,526
5,623
5,371
20222021202020192018
Corporate Customers
Consumer Customers
Number of personnel at the year end
0
1,000
2,000
3,000
4,000
5,000
6,000
2,033
2,148
2,257
2,754
2,736
2,914
2,526
2,845
2,684 2,939
2. Operational result 2.1 Operating segments and
geographical areas
4 Personnel
FINANCIAL STATEMENTS 2022
36
Employee bonus and incentive schemes
All employees are included in the scope of performance, incentive, commission or provision-based bonus schemes. The Group also has a personnel fund. The costs of the performance-based
bonus scheme and personnel fund are recognised on an accrual basis and the costs are based on the best available estimate of realised amounts.
Performance-based bonus scheme
Rewards are based on financial and operational metrics of Elisa Corporation and its units. Targets are set, and the maximum amount of reward is confirmed semi-annually. Some of the Group’s
key personnel also participated in the share-based compensation plan in 2022.
Personnel fund
The objective of the personnel fund is to secure the commitment of the personnel to Elisa’s long-term objectives and to reinforce their interest in the company’s financial success and its metrics.
The evaluation metrics for the performance-based bonus schemes are earnings per share (EPS) and achievement of defined strategic goals. The Board of Directors decides on the performance-
based bonus schemes and sets the earning criteria for the profit share reward annually.
The members of the personnel fund are the employees of Elisa Group, with the exception for those employees who are part of the share incentive plan. In 2022, EUR 2.2 (2.7) million was
recognised in the Group’s personnel fund.
Management remuneration
EUR million
2022 2021
Managing Directors
8.0
8.1
Members and deputy members of Boards of Directors
0.8
0.7
Employment benefits for key management
Key management consists of Elisa’s Board of Directors, the CEO and the Executive Board.
The remuneration of the Board members and CEO is presented under Parent company’s Note 4.
Benefits recognised on the income statement
EUR million
2022 2021
Remunerations and other short-term employee benefits
5.1
4.6
Post-employment benefits
0.3
0.3
Share-based compensation
(1
5.1
2.8
10,5
7.7
1)
In 2022, the share-based compensation expenses were EUR 14.0 (8.0) million, of which EUR 1.3 (0.7) million is allocated to the CEO and EUR 3.7 (2.1) million to the Executive Board. The terms and conditions
of share-based incentive plans are described under Note 4.2.
FINANCIAL STATEMENTS 2022
37
Benefits paid
EUR million
2022 2021
Board of Directors
0.8
0.7
CEO
1.1
0.9
Executive Board
3.2
2.9
Share-based compensations
(1
2.7
3.3
7.8
7.9
1)
The reward paid to the CEO under the share-based compensation plans was EUR 0.7 (0.9) million and to the Executive Board members EUR 2.0 (2.5) million.
The period of notice for the CEO is six months, if the service contract is terminated by Elisa, and three months, if the contract is terminated by the CEO. Should the service contract be terminated
by Elisa, the CEO is entitled to receive a severance payment equalling the total salary of 24 months less the salary for the period of notice.
The period of notice for other members of the Executive Board is six months, if the service contract is terminated by Elisa. Should the contract be terminated by Elisa, the member of the Executive
Board is entitled to receive a severance payment that equals the total salary of 15 months less the salary for the period of notice.
Managing Directors’ pension commitments
In 2020, the Board of Directors agreed with the CEO of Elisa Corporation Veli-Matti Mattila that he will continue as CEO until further notice. Under previous executive agreement, the Group CEO
would have retired at the age of 60. The defined benefit pension plan includes vested rights. The company is liable for the pension until the age of 63 and the related accumulated liability of EUR
2.1 million is included in pension obligations on the balance sheet. The pension is accrued annually by 5.1 per cent of the annual earnings under Employees Pensions Act (TyEL), and annually
by EUR 120,000 during the period 2017–2020. In the management’s cash-based supplementary pension insurance, the pension is accrued from 20.7 per cent of the annual earnings under the
Employees Pensions Act (TyEL) starting from the age of 62. The pension arrangement of the CEO is a cash-based plan, and it covers an increase in the statutory retirement age.
The executive agreements of the Group Management Board members appointed before year 2013 expire mainly at the age of 62, when they have the right to retire. Pension provisions are cash-
based, and they are covered by management supplementary pension insurance, which includes vested rights.
Share-based compensation granted to the management
The reward paid in 2022 to the CEO under the 2017 plan’s 2019–2021 performance period equals the value of 6,426 shares and for the rest of the Executive Board 17,642 shares.
The reward paid in 2021 to the CEO under the 2017 plan’s 2018–2020 performance period equals the value of 8,258 shares and for the rest of the Executive Board 25,752 shares.
The maximum reward granted to the CEO under the 2017 plan’s 2020–2022 performance period equals the value of 32,000 shares and for the rest of the Executive Board 97,500 shares.
The reward will be paid after the publication of the 2022 financial statements.
The maximum reward granted to the CEO under the 2021 plan’s 2021–2023 performance period equals the value of 32,000 shares and for the rest of the Executive Board 94,500 shares.
The reward will be paid after the publication of the 2023 financial statements.
The maximum reward granted to the CEO under the 2021 plan’s 2022–2024 performance period equals the value of 32,000 shares and for the rest of the Executive Board 89,500 shares.
The reward will be paid after the publication of the 2024 financial statements.
The maximum reward granted to the CEO under the 2021 plan’s 2023–2025 performance period equals the value of 38,430 shares and for the rest of the Executive Board 109,000 shares.
The reward will be paid after the publication of the 2025 financial statements.
Elisa shares held by key members of the management 
The members of Elisa’s Board of Directors, the CEO, the members of the Executive Board and their related parties held a total of 314,185 shares and votes, corresponding to 0.19 per cent of all
shares and votes.
FINANCIAL STATEMENTS 2022
38
4.2.1 Share-based incentive plan 2021
On 4 March 2021, the Board of Directors of Elisa Corporation has appoved a share-based incentive plan for the Group key employees for years 2021–2025.
The Performance Share Plan includes three three-year performance periods, calendar years 2021–2023, 2022–2024 and 2023–2025. The Board of Directors decided the performance criteria for
the plan and required performance levels for each criterion at the beginning of a perfomance period. After the end of the performance period, the reward is paid as a combination of company
shares and cash after the completion of financial statements. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. As a rule, no reward
will be paid, if a participant’s employment or service ends before the reward payment.
The performance criteria for the performance period 2023–2025 are based on Group’s Earnings per Share (EPS), on the International Digital services growth, on Employee Engagement and
annual progress in specific key business growth targets. The rewards to be paid on the basis of the performance period 2023–2025 correspond to the value of a maximum total of 398,500 Elisa
Corporation shares.
The performance criteria for the performance period 2022–2024 are based on Group’s Earnings per Share (EPS), on the International Digital services growth, on Employee Engagement and
annual progress in specific key business growth targets. The rewards to be paid on the basis of the performance period 2022–2024 correspond to the value of a maximum total of 360,500 Elisa
Corporation shares.
The performance criteria for the performance period 2021–2023 are based on Group’s Earnings per Share (EPS), on the International Digital services growth and on annual progress in specific key
business growth targets. The rewards to be paid on the basis of the performance period 2022–2024 correspond to the value of a maximum total of 410,700 Elisa Corporation shares.
The CEO of the Company and a member of the Corporate Executive Board must hold a minimum of 50 per cent of the net shares given on the basis of the plan, until the CEO’s shareholding in the
Company in total corresponds to the value of his annual salary and, respectively, the member’s shareholding in the Company in total corresponds to the value of half of his or her annual salary.
Amount of share incentives and terms and assumptions in the fair value calculation
Performance period
2023–2025
Performance period
2022–2024
Performance period
2021–2023
Maximum number of shares granted, pcs 395,800 360,500 410,700
Grant date 31.12.2022 31.12.2021 31.12.2020
Share price at the grant date, EUR 49.46 54.12 49.70
Performance period starts 1.1.2023 1.1.2022 1.1.2021
Performance period ends 31.12.2025 31.12.2024 31.12.2023
Estimated realisation of earning criteria at the beginning of performance period, % 41 44 46
Estimated realisation of earning criteria at the closing date, % 41 78 73
Number of participants in the plan at the closing date 196 180 157
2.2 Items affecting comparability
4.2 Share-based incentives
The Group has share-based incentive plans in place. The aim of the plans is to align the objectives of the shareholders and the key employees to increase the value of the Company in the long-
term, to retain the key employees at the Company, and to offer them a competitive reward plan that is based on earning and accumulating the Company´s shares. The potential rewards are based
on the accomplishment of the goals set.
FINANCIAL STATEMENTS 2022
39
4.2.2 Share-based incentive plan 2017
On 15 December 2017, Elisa’s Board of Directors decided on the share-based incentive plan for key personnel for 2018–2022.
The performance-based incentive plan has three performance periods: the calendar years 2018–2020, 2019–2021 and 2020–2022. The Board of Directors decides the performance criteria for
the plan and required performance levels for each criterion at the beginning of a performance period. After the end of the performance period, the reward is paid as a combination of company
shares and cash after the completion of financial statements. The cash portion intends to cover the tax obligations resulting from the share-based payment. As a rule, no reward will be paid, if a
participant’s employment or service ends before the reward payment.
The earnings criteria for the performance period 2020–2022 are based on earnings per share (EPS), on development of new businesses and other key objectives. The total maximum amount to
be paid for the performance period 2020–2022 equals the value of 407,600 Elisa shares.
The earnings criteria for the performance period 2019–2021 were based on earnings per share (EPS), on development of new businesses and other key objectives. The total maximum amount to
be paid for the performance period 2019–2021 equals the value of 536,000 Elisa shares.
The earnings criteria for the performance period 2018–2020 were based on earnings per share (EPS), on development of new businesses and other key objectives. The total maximum amount to
be paid for the performance period 2018–2020 equals the value of 550,000 Elisa shares.
The CEO of the Company and a member of the Corporate Executive Board must hold a minimum of 50 per cent of the net shares given on the basis of the plan, until the CEO’s shareholding in the
Company in total corresponds to the value of his annual salary and, respectively, the member’s shareholding in the Company in total corresponds to the value of half of his or her annual salary.
Amount of share incentives and terms and assumptions in the fair value calculation
Performance period
2020–2022
Performance period
2019–2021
Performance period
2018–2020
Maximum number of rewards granted, pcs 407,600 536,000 550,000
Grant date 31.12.2019 31.12.2018 31.12.2017
Share price at the grant date, EUR 49.25 36.08 32.72
Performance period starts 1.1.2020 1.1.2019 1.1.2018
Performance period ends 31.12.2022 31.12.2021 31.12.2020
Estimated realisation of earning criteria at the beginning of performance period, % 61 74 85
Estimated realisation of earning criteria at the closing date, % 71
Realisation of earning criteria, % 31 39
Distributed number, pcs 72,394 95,241
Volume weighted average share price at distribution date, EUR 52.52 49.39
Distributed number out of the maximum number of share rewards granted, % 14 17
Number of participants in the plan at the closing date 164 175 164
FINANCIAL STATEMENTS 2022
40
4.2.3 Committed share-based incentive plan 2019
On 31 January 2019, Elisa’s Board of Directors decided on a new committed share-based incentive plan for 2019–2025.
The rewards granted under the plan have a restriction period of 1–3 years. The potential reward is based on the validity of the key person’s contract of employment. The maximum number of
rewards paid under the plan equals the value of 500,000 Elisa shares.
Amount of share incentives and terms and assumptions in the fair value calculation
Restriction period
2022–2023
Restriction period
2022–2023
Restriction period
2019–2020
Maximum number of rewards granted, pcs 8,000 3,000 22,500
Grant date 1.8.2022 1.8.2022 10.6.2019
Share price at the grant date, EUR 54.16 54.16 41.50
Restriction period started 1.8.2022 1.8.2022 10.6.2019
Restriction period ends 31.12.2023 31.8.2023 10.6.2021
Estimated realisation of earnings criteria at the beginning of performance period, % 100 100 100
Earning criteria, realised % 100
Shares transferred, pcs 9,152
Average exchange rate on the day of transfer, EUR 51.00
Amount distributed as shares of the maximum amount of share rewards granted, % 41
Number of participants in the plan at the closing date 4 5 8
Expenses of share-based incentive plans
In 2022, EUR 14.0 (8.0) million of expenses were recognised for the share incentive plans.
FINANCIAL STATEMENTS 2022
41
Accounting principles – Share-based payments:
In the share-based payment scheme, the total reward amount is the gross earning of shares granted less the applicable withholding tax, with the remaining net amount being paid to the
reward recipient in shares. Compensation costs for the share-based incentive plans are entirely treated as equity-settled arrangements. Share-based incentive costs are recognised based on
the number of gross shares issued, even though the employee ultimately receives only net shares. The Group settles a cash payment of a portion, required to meet withholding tax obligations,
to the Tax Administration. The withholding tax paid to the Tax Administration is recognised directly in equity.
Share-based incentive plans are measured at the fair value at the grant date. If the assumption regarding the realised number of shares changes, an adjustment will be recorded through profit
and loss. The share-based incentive plans do not include any other non-market based terms and conditions. Transfer restrictions related to the share-based incentive plans are out of the scope
of the fair value measurement and expense recognition.
Accounting policies that require management’s judgements – Share-based payments:
The expense recognition for the share-based incentive plans is based on an estimate of the fulfilment of the share incentive plan criteria and the development of Elisa Group’s share price. The
fulfilment of the share incentive plan criteria and the development of the share price might deviate from the estimates.
FINANCIAL STATEMENTS 2022
42
4.3 Pension obligations
The Group’s pension obligations are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Group pays fixed contributions to pension
insurance companies. If the pension insurance company does not hold sufficient assets to pay all employees the benefits in question, the Group will have no legal or constructive obligation to pay
further contributions. The contributions for defined contribution pension plans are recognised as expenses during the financial year, in which the payment obligation has arisen. All other plans
not meeting the above criteria are classified as defined benefit plans.
The pension schemes for the Group’s personnel in Finland are covered by the Employees Pensions Act (TyEL) and are arranged through pension insurance companies. The Finnish Employees
Pensions Act (TyEL) is a defined contribution plan. Supplementary pensions are arranged through life insurance companies. Some supplementary pension plans and pension plans under the
responsibility of some group companies have been classified as defined benefit plans. The defined benefit plans are mainly funded by yearly contributions to the insurance companies, based on
actuarial valuation. Local tax and other legislation are applied to the pension plans’ arrangements. Only Elisa Corporation has defined benefit plans. The pension plans in foreign subsidiaries are
defined contribution plans.
Post-employment benefits of key management are described in Note 4.1.
The net defined benefit related to pension liability
EUR million 2022 2021
Present value of unfunded obligations –3.1 –3.6
Present value of funded obligations –47.5 –59.0
Fair value of plan assets 37.7 48.2
B/S Net pension liability (-) / receivable (+) in the statement of financial position –12.9 –14.4
Pension expenses recognised in the statement of comprehensive income
EUR million 2022 2021
Expense recognised in profit or loss
Service cost 0.2 0.1
Net interest 0.1 0.1
0.3 0.2
Remeasurements –0.5 3.5
Tax effect of the remeasurements 0.1 –0.7
I/S
–0.4 2.8
2.3 Revenue
FINANCIAL STATEMENTS 2022
43
Reconciliation of the net defined benefit obligations in the statement of financial position
EUR million 2022 2021
Net defined benefit obligation at the beginning of the period 14.4 11.0
Pension expenses recognised in profit or loss 0.3 0.2
Remeasurements –0.5 3.5
Contributions paid by the employer –1.3 –0.3
Net defined benefit obligation at the end of period 12.9 14.4
Changes in the present value of the defined benefit obligations
EUR million 2022 2021
Obligation at the beginning of the period –62.6 –63.9
Current service cost –0.2 –0.1
Interest expenses –0.4 –0.3
Remeasurements
Actuarial gain (+) or loss (-) arising from changes in economic assumptions 8.0 –3.5
Gain (+) or loss (-) arising from experience adjustments 0.1 0.8
Benefits paid 4.5 4.5
Obligation at the end of period –50.6 –62.6
Changes in the fair value of plan assets
EUR million 2022 2021
Fair value of plan assets at the beginning of the period 48.2 52.9
Interest income 0.3 0.3
Remeasurements, gain (+) or loss (-) –7.7 –0.7
Benefits paid –4.5 –4.5
Contributions paid by the employer 1.3 0.3
Fair value of plan assets at the end of period 37.7 48.2
The principal actuarial assumptions used 2022 2021
Discount rate, % 3.3 0.7
Future pension increase, % 2.8 1.9
Inflation, % 2.6 1.8
Sensitivity analysis of net defined benefit obligation
Effect on the net defined benefit
obligation, EUR million
Change in actuarial assumptions 2022 2021
Discount rate + 0.5% –0.9 –1.2
Future pension increase +0.5% 0.9 3.9
Expected mortality +1 year 0.7 0.8
FINANCIAL STATEMENTS 2022
44
When calculating a change in one assumption of the sensitivity analysis, the other assumptions are assumed to remain unchanged. In practice, this is not likely to happen, and some changes in
the assumptions may correlate with each other. The figures in the sensitivity analysis have been calculated using the same method which is applied when calculating defined benefit obligations.
Defined benefit obligations expose the Group to various risks. Decreases in the gain of corporate bonds, higher inflation and higher expected retirement age may predispose the Group to the
growth of defined benefit obligations. On the other hand, since the fair value of assets is calculated using the same discount rate which is used when calculating the obligation, the change in the
discount rate will only affect the net defined benefit obligation. Similarly, a rise in life expectancy will increase the assets and affect the net defined benefit obligation.
Weighted average duration of the obligation is 13.6 (12.8) years.
The Group expects to contribute EUR 0.7 (0.4) million to defined benefit pension plans in 2023.
The assets of the defined benefit obligations are 100 per cent acceptable insurances.
Accounting principles – Pension obligations:
The Group’s defined benefit obligation has been calculated separately from each plan using the projected unit credit method. Pension expenses calculated by authorised actuaries are
recognised in profit or loss over the employees’ working lives. The rate used to discount the present value of the defined benefit obligation is determined by reference to market yields of
high-quality corporate bonds. If such information is not available, the market yields on government bonds are used. The maturity of corporate bonds and government bonds are substantially
consistent with the maturity of pension obligations. The present value of defined benefit obligation is reduced by the fair value of the plan assets at the end of the reporting period. The net
defined benefit pension liability is recognised in the statement of financial position.
Current service cost and net interest of the net defined benefit liability are recorded in employee expenses on the income statement. The remeasurements of the net defined benefit liability, for
example actuarial gains and losses and the return on plan assets, are recognised in other comprehensive income during the financial period in which they incur.
Accounting policies that require management’s judgements – Pension obligations:
The book value of defined pension obligations is based on actuarial valuations. Assumptions and estimates used in the valuations include, among others, the discount rate used on the
valuation of the pension obligation and plan assets as well as the development of inflation and salary levels.
FINANCIAL STATEMENTS 2022
45
5.1 Depreciation, amortisation and impairment
EUR million 2022 20 21
Tangible assets
Land and water areas
Right-of-use assets 1.1 1 .0
Buildings and constructions
Owned buildings and constructions 11.9 12 .4
Right-of-use assets 20.3 17 .6
Telecom devices, machinery and equipment
Owned telecom devices, machinery and equipment 168.8 173 .2
Right-of-use assets 3.0 3 .1
Other tangible assets 0.1 0 .1
205.2 20 7.5
Intangible assets
Customer base 4.3 6 .6
Other intangible assets 53.9 52 .5
58.2 5 9.1
I/S
263.4 26 6.6
EUR 0.0 (0.0) million of impairment losses have been recoded for the assets.
Contents THE REPORT OF THE BOARD OF DI-
RECTORS
5 Tangible and intangible assets
FINANCIAL STATEMENTS 2022
46
5.2 Property, plant and equipment
2022
EUR million
Land and
water areas
Buildings
and structures
Telecom devices,
machinery and
equipment
Other
tangible assets
Tangible assets
under construction Total
Acquisition cost at 1 Jan. 12.3 316.0 3,949.0 36.5 33.9 4,347.7
Business acquisitions 0.0 0.1 0.0 0.1
Additions 0.1 18.1 152.4 0.1 29.6 200.3
Business disposals –1.2 –1.2
Disposals –80.7 0.0 –80.8
Reclassifications –0.6 0.6 26.2 0.0 –30.8 –4.6
Translation differences 0.0 0.0 0.0 0.0 0.0 0.1
Acquisition cost at 31 Dec. 11.7 334.8 4,045.9 36.6 32.7 4,461.7
Accumulated depreciation and impairment at 1 Jan. 0.0 195.9 3,363.3 35.8 3,595.0
Depreciation and impairment –0.1 11.9 168.8 0.1 180.7
Accumulated depreciation on business acquisitions 0.1 0.1
Accumulated depreciation on disposals and
reclassifications –1.2 –78.9 0.0 –80.1
Accumulated depreciation on business disposals –0.7 –0.7
Translation differences 0.0 0.0 0.0 0.0
Accumulated depreciation and impairment at 31 Dec. –0.1 206.7 3,452.6 35.9 3,695.0
B/S Book value at 1 Jan. 12.3 120.0 585.7 0.8 33.9 752.7
B/S Book value at 31 Dec. 11.8 128.1 593.3 0.8 32.7 766.7
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS 2022
47
2021
EUR million
Land and
water areas
Buildings
and structures
Telecom devices,
machinery and
equipment
Other
tangible assets
Tangible assets
under construction Total
Acquisition cost at 1 Jan. 11.1 298.9 3,781.9 35.7 28.5 4,156.1
Business acquisitions 1.1 –0.4 1.2 0.7 0.2 2.8
Additions 0.1 12.7 162.6 0.1 26.5 201.8
Disposals 0.0 –0.5 –15.0 0.0 –15.4
Reclassifications 0.0 5.3 18.3 –21.3 2.3
Translation differences 0.0 0.0 0.1 0.0 0.0 0.1
Acquisition cost at 31 Dec. 12.3 316.0 3,949.0 36.5 33.9 4,347.7
Accumulated depreciation and impairment at 1 Jan. 0.0 183.7 3,202.2 35.1 3,421.0
Depreciation and impairment 12.4 173.2 0.1 185.7
Accumulated depreciation on business acquisitions 0.1 1.0 0.6 1.7
Accumulated depreciation on disposals and
reclassifications –0.3 –13.1 –13.5
Translation differences 0.0 0.0 0.0 0.1
Accumulated depreciation and impairment at 31 Dec. 0.0 195.9 3,363.3 35.8 3,595.0
B/S Book value at 1 Jan. 11.1 115.2 579.7 0.7 28.5 735.1
B/S Book value at 31 Dec. 12.3 120.0 585.7 0.8 33.9 752.7
On 31 December 2022, the investment commitments for tangible and intangible assets were EUR 70.1 (55.7) million.
FINANCIAL STATEMENTS 2022
48
Accounting principles – Property, plant and equipment:
Property, plant and equipment are recognised in the statement of financial position at the original cost. Property, plant and equipment are valuated at acquisition cost less accumulated
depreciation and impairments. Depreciation is recorded on a straight-line basis over the useful lives of tangible assets. The residual value and the useful life of an asset is reviewed at year-end
and adjusted, if necessary.
Subsequent costs, such as renewals and major renovation projects, are capitalised when it is probable that future economic benefit will flow to the Group. Ordinary repair, service and
maintenance costs are recognised as expenses during the financial period in which they incur.
Government grants, such as grants received in connection with the acquisition of fixed assets, are recorded as a deduction from the carrying amount of the fixed assets. Government grants are
recognised in profit and loss in the form of lower depreciation over the useful life of the fixed asset.
Expected useful life of property, plant and equipment:
Buildings and structures 25–40 years
Machinery and equipment in buildings 10–25 years
Telecommunications network (line, backbone, area, subscription, cable TV) 8–15 years
Exchanges and concentrators (fixed and mobile core) 6–10 years
Equipment for the network and exchanges 3–8 years
Telecommunication terminals 2–4 years
Other machinery and equipment 3–5 years
Land and water areas are not depreciated.
FINANCIAL STATEMENTS 2022
49
5.3 Right-of-use assets
2022
EUR million
Land and
water
areas
Buildings
and structures
Telecom devices,
machinery and
equipment Total
Acquisition cost at 1 Jan. 15.5 129.1 130.3 274.9
Business acquisitions 0.0 0.0
Additions 1.6 20.6 3.3 25.5
Disposals –1.6 –1.6
Reclassifications –4.3 –112.6 –117.0
Translation differences –0.2 0.0 –0.2
Acquisition cost at 31 Dec. 17.2 143.6 20.9 181.7
Accumulated amortisation and impairment at 1 Jan. 2.9 56.3 124.7 183.9
Depreciation and impairment 1.1 20.3 3.0 24.4
Accumulated amortisation on disposal and reclassifications –4.3 –112.6 –117.0
Translation differences –0.1 0.0 –0.1
Accumulated depreciation and impairment at 31 Dec. 4.0 72.2 15.1 91.3
B/S Book value at 1 Jan. 12.6 72.8 5.5 91.0
B/S Book value at 31 Dec. 13.2 71.4 5.9 90.4
Consolidated Financial Statements
FINANCIAL STATEMENTS 2022
50
2021
EUR million
Land and
water
areas
Buildings
and structures
Telecom devices,
machinery and
equipment Total
Acquisition cost at 1 Jan. 14.0 114.0 131.7 259.7
Business acquisitions 0.8 0.3 1.2
Additions 1.5 14.3 2.1 18.0
Disposals –1.1 –1.1
Reclassifications –0.1 –2.8 –2.9
Translation differences 0.0 0.0 0.0
Acquisition cost at 31 Dec. 15.5 129.1 130.3 274.9
Accumulated depreciation and impairment at 1 Jan. 1.9 38.8 124.4 165.1
Depreciation and impairment 1.0 17.6 3.1 21.8
Accumulated depreciation on disposal and reclassifications –0.2 –2.8 –3.0
Translation differences 0.0 0.0
Accumulated depreciation and impairment at 31 Dec. 2.9 56.3 124.7 183.9
B/S Book value at 1 Jan. 12.1 75.2 7.3 94.6
B/S Book value at 31 Dec. 12.6 72.8 5.5 91.0
On 31 December 2022, the lease commitments for lease contracts commencing in the future in accordance with IFRS 16 were EUR 0.1 (4.8) million.
FINANCIAL STATEMENTS 2022
51
Accounting principles – Right-of-use assets:
A lease contract is a contract or a part of a contract that conveys the right to use the underlying asset for a specified period in exchange for consideration. When a new contract is made, Elisa
assesses whether the contract in question is a lease contract or contains a lease contract.
The Group’s leases mainly consist of leases for business premises, telecom and equipment premises, retail facilities and vehicles. Last mile rentals from other operators and indefeasible right to
use (IRU) contracts mainly do not fulfil the definition of a lease.
The right-of-use assets and lease liabilities recognised in the balance sheet are measured at present value of future lease payments at the time of initial recognition. The lease payments are
discounted using industry-specific interest rates considering the length of the lease contracts. The depreciation costs of the right-of-use assets and the interest portion of the lease liabilities are
expensed. The depreciation of right-of-use assets is recorded on a straight-line basis starting on the commencement of the agreement over the useful life of the right-of-use asset or over the
lease period, depending on which of these is shorter.
The right-of-use asset is adjusted in certain cases with remeasurements of the lease liability. Lease liabilities are mainly remeasured when future payments change due to index or interest
rate changes or when the Group’s assessment of using a possible extension option changes. When a lease liability is remeasured, the book value of the right-of-use asset is usually adjusted
accordingly.
Short term and low value leases are recognised in the income statement and presented as off-balance sheet commitments. Leases with the lease term of 12 months or less are short term
leases and leases for which the underlying asset is of low value are low value leases. Rental expenses for short term and low value leases are described under Note 8.4 Off-balance sheet leases
and other commitments.
The Group separates the service components included in the lease agreements of business premises, retail facilities and vehicles and recognises their share as an expense in the income
statement.
FINANCIAL STATEMENTS 2022
52
5.4 Intangible assets
2022
EUR million Goodwill
Customer
base
Other
intangible
assets
Intangible
assets under
construction Total
Acquisition cost at 1 Jan. 1,160.6 45.0 845.1 13.4 2,064.1
Business acquisitions 22.5 2.1 24.6
Additions 51.4
(1
12.5 63.9
Disposals –0.2 –0.2
Business disposals 0.0 0.0
Reclassifications 8.0 –6.9 1.1
Translation differences –4.7 –0.7 0.0 –5.4
Acquisition cost at 31 Dec. 1,178.4 44.3 906.4 19.0 2,148.1
Accumulated amortisation and impairment at 1 Jan. 21.2 34.5 670.9 726.7
Depreciation and impairment 4.3 53.9 58.2
Accumulated depreciation on business acquisitions 0.1 0.1
Accumulated amortisation on disposal and reclassifications –4.0 –4.0
Accumulated depreciation on business disposals 0.0 0.0
Translation differences –0.1 –0.5 0.0 –0.7
Accumulated depreciation and impairment at 31 Dec. 21.1 38.3 720.8 780.2
Book value at 1 Jan. 1,139.4 10.5 174.2 13.4 1,337.4
Book value at 31 Dec. 1,157.3 6.0 185.5
(2
19.0 1,367.8
Consolidated income statement and state-
ment of comprehensive income
FINANCIAL STATEMENTS 2022
53
2021
EUR million Goodwill
Customer
base
Other
intangible
assets
Intangible
assets under
construction Total
Acquisition cost at 1 Jan. 1,152.5 126.9 801.7 10.2 2,091.4
Business acquisitions 8.6 0.8 3.6 13.0
Additions 34.4 10.9 45.3
Disposals 0.0 0.0
Reclassifications –82.5 5.3 –7.7 –84.9
Translation differences –0.5 –0.2 0.1 –0.7
Acquisition cost at 31 Dec. 1,160.6 45.0 845.1 13.4 2,064.1
Accumulated depreciation and impairment at 1 Jan. 21.1 110.5 618.3 749.9
Depreciation and impairment 6.6 52.5 59.1
Accumulated depreciation on business acquisitions 2.0 2.0
Accumulated depreciation on disposals and reclassifications –82.5 –1.9 –84.4
Translation differences 0.2 –0.1 0.0 0.1
Accumulated depreciation and impairment at 31 Dec. 21.2 34.5 670.9 726.7
Book value at 1 Jan. 1,131.4 16.4 183.4 10.2 1,341.5
Book value at 31 Dec. 1,139.4 10.5 174.2
(2
13.4 1,337.4
1)
Includes Estonian 3,5 GHz spectrum licence in a carrying amount of EUR 7.2 million and 2x10 MHz spectrum licence in carryng amount of EUR 2.11 million.
2)
Includes software in carrying amount of EUR 89.6 (85.1) million.
FINANCIAL STATEMENTS 2022
54
Accounting principles – Intangible assets:
An intangible asset is recognised only if it is probable that the expected future economic benefits attributable to the asset will flow to the Group and the cost of the asset can be measured
reliably. Subsequent costs related to the intangible assets are capitalised only if the future economic benefits that will flow to the Group exceed the level of performance originally assessed. In
other cases, the costs are recognised the expense is incurred.
In connection with the business combinations, intangible assets, such as customer base and brand, are measured at fair value. Other intangible assets are measured at original acquisition cost
and amortised on a straight-line basis over their estimated useful life.
Amortisation periods for intangible assets:
AsCustomer base 3–5 years
Brand 10 years
Development expenses 3 years
IT software 5 years
Other intangible assets 3–10 years
Research costs are recorded as expenses in the income statement. Development expenses capitalised from the date the product is technically feasible, it can be utilised commercially and the
asset is expected to generate future economic benefit. Otherwise, development costs are recorded as an expense. Development costs initially recognised as expenses cannot be capitalised
subsequently.
Public grants related to research and development projects are recognised as other operating income, when research and development costs are recognised as an annual expense. If the public
grant relates to the product development cost to be capitalised, the grant received reduces the capitalised acquisition costs.
Implementation costs of SaaS arrangement are generally recognised as an expense and capitalised as an intangible asset only if the capitalisation conditions are met.
The Group assesses at each balance sheet date whether there is any indication that an asset may be impaired. If such evidence exists, the recoverable amount of the asset is assessed.
Additionally, regardless of any existence of impairment indications, the recoverable amount of intangible assets under construction is assessed annually. The Group does not have any
intangible assets with an indefinite useful life.
The recoverable amount of the asset is its fair value less cost of disposal or its value in use, if it is higher. Value in use is a discounted present value of future net cash flows expected to be
derived from an asset. An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. An impairment loss is recognised immediately in the income
statement. An impairment loss is reversed, if there are indications that a change in circumstances has taken place, and the asset’s recoverable amount has changed since the impairment loss
was recognised. However, the reversal of an impairment loss will never exceed the carrying amount of the asset had no impairment loss been recognised.
FINANCIAL STATEMENTS 2022
55
5.4.1 Goodwill
Goodwill is allocated to the Group’s cash generating units as follows:
EUR million 2022 2021
Consumer Customers 641.0 641.0
Corporate Customers 516.3 498.4
B/S 1,157.3 1,139.4
The reported operating segments based on Elisa’s organisational and management structure are Consumer Customers and Corporate Customers.
Impairment testing:
In annual impairment tests, the recoverable amount of the segments is determined based on the value in use, which is calculated on the basis of projected discounted cash flows (DCF model).
Covering a five-year period, the cash flow projections are based on plans approved by the management. The projections are mostly consistent with information from external sources and reflect
actual development. The used discount rate before taxes is 6.6 per cent (5.3 per cent in comparison period ). Cash flows after five years have been projected by estimating the change in future
cash flows as 2 per cent growth.
As a result of the performed impairment tests, there was no need for impairment of the segments’ goodwill.
Usage of the DCF model requires forecasts and assumptions concerning market growth, prices, volume development, investment needs and general interest rate. The major sensitivities in the
performance are associated with forecast revenue and profitability levels.
Sensitivity analysis
Projection parameters applied
Consumer
Customers
2022
Corporate
Customers
2022
Consumer
Customers
2021
Corporate
Customers
2021
Amount in excess of CGU carrying value, EUR million 5,446 2,452 7,973 3,871
EBITDA margin on average, %
(1
38.5 30.0 38.4 31.7
Horizon growth, % 2.0 2.0 2.0 2.0
Pre-tax discount rate, % 6.6 6.6 5.3 5.3
1)
On average during a five-year projection period.
Change in projection parameters that makes the fair value equal to book value
Consumer
Customers
2022
Corporate
Customers
2022
Consumer
Customers
2021
Corporate
Customers
2021
EBITDA margin on average, % –18.8 –13.3 –20.9 –16.0
Horizon growth, % –28.9 –22.8 –35.5 –29.0
Pre-tax discount rate, % 17.3 15.3 19.9 16.6
FINANCIAL STATEMENTS 2022
56
Accounting principles – Goodwill:
Goodwill arising from business combinations prior to 2004 is accounted for in accordance with the previous financial statements regulations and the book value is the assumed acquisition
cost in accordance with IFRS. Business combinations incurred between 1 January 2004 and 31 December 2009 have been accounted for in accordance with IFRS 3 (2004). Goodwill arising from
business combinations incurred after 1 January 2010 represents the excess of the consideration transferred over the Group’s interest in the net fair value of the identifiable net assets acquired
and the amount of non-controlling interest, and in a business combination achieved in stages, the acquisition-date fair value of the equity interest.
Goodwill is not amortised. Goodwill is tested for impairment annually, or more frequently, if there is any indication of a potential impairment. For the purpose of impairment testing, goodwill is
allocated to the cash-generating units (CGU’s) – Consumer Customers and Corporate Customers. Goodwill is carried at its cost less any accumulated impairment losses.
An impairment loss is recognised, when the carrying amount of an asset exceeds its recoverable amount. An impairment loss is recognised immediately in the income statement. If an
impairment loss is allocated to a cash-generating unit, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash-generating unit, and then to the other assets of the
unit on a pro rata basis. An impairment loss recognised for goodwill is never reversed under any circumstances.
Accounting policies that require management’s judgements – Goodwill impairment testing:
The recoverable amount of cash-generating units is determined by calculations based on value in use, the preparation of which requires estimates and assumptions. The main uncertainties are
associated with the estimated levels of revenue and profitability and the discount rate. Any changes may lead to the recognition of impairment losses.
FINANCIAL STATEMENTS 2022
57
6.1 Inventories
EUR million 2022 2021
Materials and supplies 33.2 23.7
Finished goods 62.4 59.1
B/S 95.5 82.8
An impairment on inventories of EUR 0.4 (2.1) million was recognised during the financial period.
Consolidated statement of financial position Consolidated cash flow state-
ment
Consolidated statement of
changes in equity
6 Inventories, trade and other receivables, trade and other liabilities
6.2.1 Current receivables
EUR million 2022 202 1
Trade receivables 421.9 395.7
Impaired trade receivables –4.7 –5.4
Contract assets related to revenue 2.0 4.3
Contract assets related to costs 5.7 5.7
Accrued income 79.8 79.5
Finance lease receivables 16.5 11.9
Loan receivables 0.1 0.1
Receivables from associated companies 0.1 0.1
Other receivables 15.6 14.3
B/S 537.1 506.3
Accrued income includes interest receivables as well as income and cost accruals from the operating activities.
6.2 Trade and other receivables
FINANCIAL STATEMENTS 2022
58
6.2.2 Non-current receivables
EUR million 2022 2021
Loan receivables 0.0 0.0
Trade receivables 99.4 92.0
Finance lease receivables 12.7 6.2
Accrued income 2.4 3.1
Non-current derivatives 1.2 1.6
Other non-current receivables 1.1 0.4
B/S 116.8 103.2
The effective interest rate on receivables (current and non-current) was 0.00 (0.00) per cent.
Aging of trade receivables 2022 2021
EUR million
Nominal
value Impairment
Carrying
amount
Nominal
value Impairment
Carrying
amount
Not past due 374.9 0.0 374.9 354.0 –0.3 353.8
Past due
Past due less than 30 days 32.8 –0.2 32.6 28.2 –0.2 28.0
Past due 31–60 days 5.1 –0.4 4.7 5.3 –0.4 4.9
Past due 61–90 days 3.0 –0.5 2.5 2.7 –0.3 2.4
Past due 91–180 days 2.7 –1.7 1.0 2.3 –1.5 0.8
Past due more than 181 days 3.4 –1.9 1.5 3.2 –2.7 0.5
421.9 –4.7 417.2 395.7 –5.4 390.3
The book value of trade receivables approximates their fair value. The credit risk associated with trade receivables is described in note 7.1. The maximum exposure to credit risk is the carrying
amount of the trade receivables on the closing date, EUR 417.2 million.
FINANCIAL STATEMENTS 2022
59
Gross finance lease receivables – maturity of minimum lease receivables
EUR million 2022 2021
Within one year 17.0 12.1
Later than one year, not later than five years 13.1 6.3
30.1 18.4
Future finance income –0.8 –0.3
Present value of finance lease receivables 29.3 18.1
Maturity of present value of future minimum lease receivables
EUR million 2022 2021
Within one year 16.5 11.9
Later than one year, not later than five years 12.7 6.2
29.3 18.1
Lease periods vary from one to five years, and conditions vary in terms of index clauses.
FINANCIAL STATEMENTS 2022
60
6.3 Trade and other liabilities
EUR million 2022 2021
Non-current
Trade payables
(1
1.4 8.1
Advances received 4.3 4.4
Derivative instruments 0.0 0.0
Other liabilities
(2
24.6 28.5
B/S 30.3 41.0
Current
Trade payables
(1
199.0 203.8
Advances received 10.3 9.3
Contract liabilities, from revenue 30.8 27.7
Accrued employee-related expenses 64.9 60.8
Other accruals 8.0 8.4
Liabilities to associated companies 0.0 0.0
Other liabilities
(2
99.9 91.6
B/S 412.9 401.6
443.2 442.6
1)
Non-current trade payables include liabilities of EUR 0.0 (5.3) million for 3540–3670 MHz spectrum licence and EUR 1.4 (2.8) million for 26 GHz spectrum licence. Current trade payables include liabilities of
EUR 5.3 (5.3) million for a 3540–3670 MHz spectrum licence and EUR 1.4 (1.4) million for a 26 GHz spectrum licence.
2)
Other non-current liabilities include EUR 18.1 (21.4) million and other current liabilities include EUR 6.9 (0.0) million of contingent considerations and contingent redemption obligations for non-controlling
interests related to business acquisitions.
Other accruals consist of accrued interest expenses as well as income and cost accruals from the operating activities.
Notes
FINANCIAL STATEMENTS 2022
61
Accounting principles – Inventories, trade and other receivables, trade and other liabilities:
Inventories:
Inventories are measured at their acquisition cost or at the net realisable value, if lower than the cost. In ordinary course of business net realisable value is the estimated selling price less
necessary estimated costs associated with the eventual sale. The cost is determined using a weighted average price.
Receivables:
Receivables are valued at amortised cost and recognised at the original invoiced amount. The Group records the provision for the impairment losses arising from trade receivables based on
historical default rates over the expected life and recognises the impairment loss when the trade receivables are stated as lost. The impairment loss is adjusted by the amount of factored
receivables.
Trade receivables and other receivables are classified as non-current receivables, if they mature in more than 12 months. In other cases, they are classified as current receivables.
The Group offers the consumer customers various payment methods granting possibility to purchase equipment on 12–36 months credits. At the time of the sale of the equipment, such
transactions are recorded as revenue and trade receivable. The trade receivables are classified as non-current, if their maturity exceeds 12 months.
Finance lease receivables:
The Group acts as a lessor in the lease arrangements for video conferencing and data terminal equipment, which is accounted for as finance leases. At the time of the sale of the equipment, the
proceeds is recorded as revenue and receivables at present value. Rental income received is recorded as financial income and a reduction of the receivables, reflecting a constant periodic rate
of return on the net investment.
Trade payables:
The current value of trade payables and other liabilities is a reasonable estimate of their fair value. The payment terms of the Group’s trade payables correspond to conventional corporate
payment terms.
FINANCIAL STATEMENTS 2022
62
7.1.1 Market risks
Interest rate risk
Elisa is exposed to interest rate risk mainly through its financial liabilities. In order to manage interest rate risk, the Group’s borrowings and investments are diversified in fixed and variable-rate
instruments. Derivative financial instruments may also be used in managing interest rate risk. The purpose is to minimise the negative effects caused by changes in the interest rate level.
Timing of interest rate changes for interest-bearing financial liabilities (EUR million) 31 Dec. 2022, at nominal value
Time of interest rate change
Less than
1 year
Between
1 and 5 years
Over
5 years Total
Variable-rate financing instruments
Commercial paper 125.0 125.0
Bank loans 100.0 100.0
Fixed-rate financing instruments
Bonds 600.0 300.0 900.0
Bank loans 150.0 3.2 153.2
Lease liabilities 20.4 30.5 40.4 91.2
245.4 780.5 343.6 1,369.4
On 31 December 2022, the Group’s interest-bearing financial assets consisted of commercial papers and bank deposits amounting to EUR 0.0 million and cash in the bank amounting to EUR
85.4 million.
Lease contracts contain index-linkages, which affect the amounts of lease liabilities, right-of-use assets and depreciation.
The sensitivity analysis includes the financial liabilities at the balance sheet date. The change in interest rate level is assumed to be one percentage point and the effect on income is calculated
before taxes. The interest rate position is assumed to include interest-bearing financial liabilities and receivables, as well as interest rate swaps on the balance sheet date, assuming that all the
contracts will be valid and stay unchanged for the entire year.
EUR million 2022 2021
Change in interest rate level +/- 1% –2.25/2.25 –1.8/+0.0
1. General account-
ing principles
1.1 Basic information about the
Group
7 Capital structure
7.1 Financial risk management
Elisa’s central treasury department manages the exchange rate, interest rate, liquidity and refinancing risks for the entire Group. The financing policies, covering funding and investment principles,
are annually discussed and ratified by the Audit Committee of the Board of Directors. Funding risks are monitored as a part of the regular business monitoring procedure.
FINANCIAL STATEMENTS 2022
63
Foreign exchange risk
Most of Elisa Group’s cash flows are denominated in euros, which means that the company’s exposure to exchange rate risk (economic risk and transaction risk) is low. Business related exchange
rate risks arise from Polystar Osix Ab and its subsidiaries, international interconnection traffic and, to a minor extent, other acquisitions. The most essential currencies are the US dollar (USD), the
Swedish Krona (SEK), the Canadian dollar (CAD), the British pound (GBP) and the Norwegian Krone (NOK). The impact of other currencies is insignificant.
During the financial year, exchange rate hedges have been used against changes in the value of the Swedish Krona. The Group has hedged Swedish Krona denominated expenses with foreign
currency forward contracts. The Group’s financial liabilities do not include exchange rate risk.
The translation difference exposure from the foreign subsidiaries included in consolidated equity mainly consists of Polystar subgroup. The translation difference exposure has not been hedged
during the reporting period.
Foreign currency position 2022 2021
EUR million
Trade receivables Trade payables Trade receivables Trade payables
USD 13.0 7.6 11.8 5.3
SEK 4.0 0.9 4.9 0.4
CAD 3.8 0.0 1.1 0.0
GBP 1.0 0.3 0.4 0.5
NOK 0.4 0.0 0.5 0.0
The Group level currency exposure is the basis for the sensitivity analysis of foreign exchange risk. Assuming euro to appreciate or depreciate 20 percent against all other currencies, the impact on
cash flows would be:
EUR million 2022 2021
USD +/- 1.1 +/- 1.3
SEK +/- 0.6 +/- 0.9
CAD +/- 0.7 +/- 0.2
GBP +/- 0.2 -/+ 0.0
NOK +/- 0.1 +/- 0.1
FINANCIAL STATEMENTS 2022
64
Commodity risks
Elisa is investing strongly in the use of renewable energy and has signed a wind power purchase agreement for the next 10 years for the Puutikankangas Wind -wind farm that is under
construction. The agreement covers about half of the electricity consumption of Elisa’s mobile network in Finland. Puutikankangas wind farm will be operational in 2023.
Elisa hedges electricity purchases with physical purchase contracts and derivatives. The electricity price risk is assessed for a five-year period. Hedge accounting is applied to contracts hedging future
purchases. The effective portion of derivatives that qualify for hedge accounting is recognised in the revaluation reserve of equity and the ineffective portion is recognised in the income statement
under other operating income or expenses. The change in the revaluation reserve, recognised in equity, is presented in the statement of comprehensive income under Cash flow hedge.
At the end of the year, the ineffective portion of hedge accounting was EUR 0.0 (0.0) million.
The hedging rate for purchases in the following years, % 2022 2021
0–1 years 86.6 93.1
1–2 years 60.1 30.6
2–3 years 38.9
3–4 years 37.8
4–5 years 36.7
If the market price of electricity derivatives changed by +/- 10 per cent from the balance sheet date 31 December 2022, it would contribute EUR +1.8/–0.5 (+2.0/–1.2) million to equity. The impact
has been calculated before tax.
7.1.2 Liquidity risk
The objective of liquidity risk management is to ensure the Group’s financing under all circumstances. The Group’s most important financing arrangement is an EMTN programme of EUR 1,500
million, under which the Company issued bonds for EUR 900 million. Furthermore, the Company has a EUR 350 million commercial paper programme and committed credit limit of EUR 300
million, out of which EUR 130 million credit limit will fall due on 22 September 2026 and EUR 170 million will fall due on 7 July 2024. Both credits were fully undrawn on 31 December 2022. The
loan margin is determined based on the Company’s credit rating.
Elisa issued EUR 100 million short-term financing under the credit facility, that was arranged by Landesbank Baden-Württemberg. The limit is non-committed and is valid until 31 May 2023. The
limit was fully undrawn on 31 December 2022.
On 3 February 2022, Elisa has established a Sustainability Finance Framework to support the company’s sustainability goals. Elisa can issue bonds and other financial instruments to finance or
refinance sustainable investments and projects in accordance with the Framework.
As part of ensuring its financing, Elisa has acquired international credit ratings. Moody’s Investor Services have rated Elisa’s long-term commitments as Baa2 (outlook stable). Standard & Poor
Global has rated the company’s long-term commitments as BBB+ (outlook stable) and short-term commitments as A–2.
Cash and undrawn committed limits
EUR million 2022 2021
Cash and cash equivalents 85.4 114.1
Credit limits 300.0 300.0
385.4 414.1
On 31 December 2022, cash and cash equivalents, as well as undrawn committed credit limits less commercial papers issued by Elisa, were EUR 260.4 (414.1) million.
Contract-based cash flows for financial liabilities are presented under Note 7.4.2
FINANCIAL STATEMENTS 2022
65
7.1.3 Credit risk
Financial instruments contain an element of risk of the respective parties failing to fulfil their obligations. Liquid assets are invested within confirmed limits in investment targets with good
credit ratings. Investments and the limits specified for them are reviewed annually, or more often, if necessary. Derivative contracts are only signed with Finnish and foreign banks with good
credit ratings.
The business units are liable for credit risk associated with trade receivables. The units have written credit policies that are mainly consistent with uniform principles. The credit ratings of new
customers are always reviewed from external sources when selling products or services invoiced in arrears. In case of additional sales to existing customers, creditworthiness is reviewed on
the basis of the company’s own accounts. The Group may also collect advance or guarantee payments in accordance with its credit policy.
Credit risk concentrations in trade receivables are minor, as the Group’s customer base is wide; the ten largest customers represent approximately 7 per cent of customer invoicing. EUR
4.7 (5.4) million of uncertain receivables have been deducted from consolidated trade receivables. The Group’s previous experience in the collection of trade receivables corresponds to the
recognised impairment. Furthermore, the Group regularly sells the past due trade receivables of defined customer groups. Based on these facts, the management is confident that the Group’s
trade receivables do not involve any substantial credit risk. The maximum credit risk is the value of trade receivables. On 31 December 2022 short-term trade receivables were EUR 417.2
(390.3) million and long-term trade receivables EUR 99.4 (92.0) million. The aging of short-term trade receivables is described in note 6.2.1.
FINANCIAL STATEMENTS 2022
66
7.2.2 Available sources of financing               
With regard to capital financing, the company’s objective is to maintain sufficient flexibility for the Board of Directors to issue shares. The Annual General Meeting 2021 authorised the Board
of Directors to pass a resolution concerning the share issue, right of assignment of treasury shares and/or granting of special rights referred to in the Limited Liability Companies Act. The
authorisation entitles the Board of Directors to issue the shares in a proportion other than that of the current shareholdings (directed share issue). A maximum aggregate of 15 million of the
company’s shares can be issued under the authorisation.
Shareholders’ equity 2022 2021
Treasury shares, 1,000 pcs 7,075 7,148
Share issue authorisation, 1,000 pcs 15,000 14,991
On 31 December 2022, the maximum amount of the share issue authorisation at the share closing price was EUR 741.9 (811.3) million.
With regard to capital financing, the company maintains loan programmes and credit arrangements that allow quick issuance. The arrangements are committed and non-committed, and allow
issuances for different maturities.
Debt capital 2022 2021
Commercial paper programme (non-committed)
(1
225.0 350.0
Credit facility (non-committed) 100.0
Revolving credits (committed)
(2
300.0 300.0
EMTN programme (non-committed)
(3
600.0 600.0
Total, EUR million 1,225.0 1,250.0
On the closing date, the share issue authorisation as well as committed and non-committed credit arrangements totalled EUR 1,966.9 (2,061.3) million.
1)
The commercial paper programme amounted to EUR 350 million, of which EUR 125 million was in use on 31 December 2022.
2)
Elisa has two committed revolving credit facilities of EUR 300 million in total. Both credits were undrawn on 31 December 2022.
3)
Elisa has a European Medium Term Note programme (EMTN) for a total of EUR 1,500 million, of which EUR 900 million was in use on 31 December 2022. The programme was updated on 21 July 2022, and it
is valid for one year as of the update.
1.2 Basis of presentation of financial
statements
7.2 Capital management
Elisa’s capital consists of equity and liabilities. To develop its business, Elisa may carry out expansion investments and acquisitions that may be financed through equity or liabilities, directly or
indirectly.
The target for the company’s equity ratio is over 35 per cent and comparable net debt / EBITDA 1.5 to 2.0.
The company’s distribution of profit to shareholders consists of dividends, capital repayment and acquisition of treasury shares. Effective profit distribution is 80 per cent to 100 per cent of profit
for the period. Furthermore, additional profit distribution to the shareholders may occur. When proposing or deciding on the profit distribution, the Board takes into account the company’s
financial position, future financing needs, and set financial objectives.
7.2.1 Capital structure and key indicators
EUR million 2022 2021
Interest-bearing net debt 1,275.8 1,219.1
B/S Total equity 1,251.9 1,204.1
Total capital 2,527.7 2,423.2
Gearing ratio, % 101.9 101.2
Net debt / EBITDA 1.7 1.7
Equity ratio, % 40.6 39.9
FINANCIAL STATEMENTS 2022
67
1.3 Applied new and revised stan-
dards
7.3 Equity
7.3.1 Share capital and treasury shares
EUR million
Number of
shares
(thousands)
Share
capital
Treasury
shares
1 Jan. 2021 167,335 83.0 –128.4
Disposal of treasury shares 2.3
B/S 31 Dec. 2021 167,335 83.0 –126.1
Disposal of treasury shares 1.6
B/S 31 Dec. 2022 167,335 83.0 –124.5
At the end of the reporting period, the company’s paid-in share capital registered in the Trade Register was EUR 83,033,008 (83,033,008).
According to its Articles of Association, Elisa Corporation has only one series of shares, each share entitling to one vote. All issued shares have been paid for. Shares do not have a nominal value.
Treasury shares include the acquisition cost of treasury shares held by the Group, and they are deducted from shareholder’s equity in the consolidated financial statements.
Treasury shares
Shares,
pcs
Accounting
countervalue,
EUR
Holding, %
of share s
and votes
Treasury shares held by the Group at 1 Jan. 2021 7,252,165 3,598,583 4.33
Disposal of treasury shares –104,393
Treasury shares held by the Group at 31 Dec. 2021 7,147,772 3,546,782 4.27
Disposal of treasury shares –72,394
Treasury shares held by the Group at 31 Dec. 2022 7,075,378 3,510,859 4.23
7.3.2 Dividends
The Annual General Meeting has proposed a total dividend of EUR 2.15 per share to be paid for the 2022 result. A dividend of EUR 2.05 per share was paid for the 2021 result.
FINANCIAL STATEMENTS 2022
68
7.3.3 Other reserves
EUR million
Reserve for
invested
non-
restricted
equity
Contingency
reserve
Fair
value
reserve
Other
reserves Total
1 Jan. 2021 90.9 3.4 –8.7 381.0 466.6
Cash flow hedge 0.9 0.9
Remeasurements of the net defined benefit liability –2.8 –2.8
B/S 31 Dec. 2021 90.9 3.4 –10.6 381.0 464.8
Cash flow hedge –0.3 –0.3
Remeasurements of the net defined benefit liability 0.4 0.4
B/S 31 Dec. 2022 90.9 3.4 –10.5 381.0 464.8
The reserve for invested non-restricted equity includes the proportion of share subscription prices that was not recognised as share capital in accordance with the share issue terms.
The contingency reserve includes the amount transferred from distributable equity under the Articles of Association or by General Meeting decision. The fair value reserve includes changes in the
fair value of other investments, the remeasurements of the net defined benefit liability and the effective portion of the changes in the fair values of derivatives designated as cash flow hedges.
Other reserves were formed through share issues in business acquisitions by the amount exceeding the par value of the share received by the Company.
FINANCIAL STATEMENTS 2022
69
7.4.1 Financial income and expenses
EUR million 2022 2021
Financial income
Dividend income on other financial assets 0.4 0.6
Interest and financial income on loans and other receivables 2.2 1.9
Gain on disposal from financial assets 0.1 0.1
Foreign exchange gain 2.8 2.0
Other financial income 0.0 0.1
I/S
5.6 4.6
Financial expenses
Interest expenses on financial liabilities measured at amortised cost –11.1 –10.1
Interest expenses on lease liabilities –2.6 –2.7
Other financial expenses on financial liabilities measured at amortised cost –2.0 –2.5
Other interest expenses –0.2 –0.2
Impairments –0.2
Foreign exchange loss –2.2 –0.6
Other financial expenses –0.5 –0.3
I/S
–18.7 –16.5
Accounting principles – Financial income and expenses:
Interest income and expenses are recognised using the effective interest rate method, and dividend income is recognised when the right to dividend is incurred.
Foreign exchange rate gains and losses are recognised in accordance with their nature either in materials and services or in financial income and expenses.
2. Operational result
7.4 Financial assets and liabilities
FINANCIAL STATEMENTS 2022
70
7.4.2 Financial liabilities
2022 2021
EUR million
Balance
sheet values
Fair
values
Balance
sheet values
Fair
values
Non-current
Bonds 891.8 819.9 888.1 913.1
Bank loans 103.2 103.2 253.3 253.3
Lease liabilities 70.8 70.8 73.4 73.4
B/S 1,065.9 994.0 1,214.8 1,239.8
Current
Bank loans 150.0 150.0 100.2 100.2
Lease liabilities 20.4 20.4 18.1 18.1
Commercial paper 125.0 125.0
B/S 295.4 295.4 118.4 118.4
1,361.2 1,289.3 1,333.2 1,358.2
The financial liabilities include a total of EUR 91.2 (91.6) million of secured lease liabilities. In practice, lease liabilities are secured liabilities, as the rights to the leased property will revert to the
lessor if the payments are neglected.
All financial liabilities are denominated in euros. Financial liabilities are measured at amortised cost. The fair values of financial liabilities are based on quoted market prices.
The average maturity of non-current liabilities was 2.7 (3.7) years and the effective average interest rate was 1.0 (0.7) per cent.
FINANCIAL STATEMENTS 2022
71
Contract-based cash flows on the repayment of financial liabilities and costs
2022
EUR million 2023 2024 2025 2026 2027 2028– Yhteensä
Bonds 6.8 306.8 4.1 304.1 300.8 922.5
Financial costs 6.8 6.8 4.1 4.1 0.8 22.5
Repayments 0.0 300.0 0.0 300.0 300.0 900.0
Bank loans 153.9 3.3 103.3 0.2 0.2 2.3 263.2
Financial costs 3.7 3.0 3.0 0.0 0.0 0.2 9.9
Repayments 150.3 0.3 100.2 0.2 0.2 2.1 253.2
Commercial paper 125.0 125.0
Financial costs 0.5 0.5
Repayments 124.5 124.5
Lease liabilities 23.4 17.8 14.2 9.8 5.3 66.0 136.5
Financial costs 3.1 5.8 5.0 3.8 2.0 25.6 45.2
Repayments 20.4 11.9 9.2 6.0 3.3 40.4 91.2
Derivatives –1.1 –1.1
Electricity derivatives –1.2 –1.2
Currency derivatives 0.0 0.0
Trade payables 199.0 199.0
Total 507.0 327.8 121.6 314.1 306.3 68.3 1,645.0
Financial costs 12.8 15.6 12.2 7.9 2.7 25.8 77.0
Repayments 494.2 312.2 109.4 306.2 303.5 42.5 1,568.0
FINANCIAL STATEMENTS 2022
72
2021
EUR million 2022 2023 2024 2025 2026 2027– Yhteensä
Bonds 6.8 6.8 306.8 4.1 304.1 300.8 929.3
Financial costs 6.8 6.8 6.8 4.1 4.1 0.8 29.3
Repayments 300.0 300.0 300.0 900.0
Bank loans 1.1 151.0 0.4 100.4 0.3 2.1 255.4
Financial costs 0.8 0.8 0.1 0.1 0.0 0.1 1.9
Repayments 0.3 150.3 0.3 100.3 0.3 2.0 253.5
Schuldschein loan 100.0 100.0
Financial costs
Repayments 100.0 100.0
Lease liabilities 20.6 16.5 13.3 11.3 8.7 66.3 136.6
Financial costs 2.4 5.6 4.6 4.1 3.2 25.0 45.1
Repayments 18.1 10.9 8.7 7.2 5.4 41.3 91.6
Derivatives –1.6 –1.6
Electricity derivatives –1.6 –1.6
Currency derivatives 0.0 0.0
Trade payables 203.8 203.8
Total 330.6 174.3 320.5 115.9 313.1 369.2 1,623.5
Financial costs 8.4 13.1 11.5 8.4 7.4 25.9 74.6
Repayments 322.3 161.2 309.0 107.5 305.7 343.3 1,548.9
Future financial costs of variable-rate financial liabilities have been calculated at the interest rate prevailing on the period end date.
The company has EUR 300 million in credit facilities, of which EUR 130 million matures in 2026 and EUR 170 million in 2024. Both credits were undrawn on 31 December 2022.
FINANCIAL STATEMENTS 2022
73
Bonds
In the framework of its bond programme, the parent company has issued the following bonds:
31 Dec. 2022
Fair value
EUR million
Balance
sheet value
EUR million
Nominal
value
EUR million
Nominal
interest
rate, %
Effective
interest
rate, %
Maturity
date
EMTN programme 2001 / EUR 1,000 million
I/2017 291.0 297.7 300.0 0.875 0.974 17.3.2024
I/2019 276.2 295.9 300.0 1.125 1.236 26.2.2026
I/2020 252.7 298.2 300.0 0.250 0.322 15.9.2027
819.9 891.8 900.0
The fair value of bonds is based on market quotes.
Maturity of lease liabilities’ cash flows
EUR million 2022 2021
Within one year 20.4 18.1
Later than one year, but not later than five years 30.5 32.1
Later than five years 40.4 41.3
91.2 91.6
FINANCIAL STATEMENTS 2022
74
7.4.3 Financial assets and liabilities recognised at fair value
Carrying amounts of financial assets and liabilities by category
2022
EUR million
Financial
assets/liabilities
measured at
fair value through
profit or loss
Financial
assets/liabilities
measured at fair value
through other
comprehensive income
Financial
assets/liabilities
measured at
amortised
cost
Book
values
Fair
values Note
Non-current financial assets
Other financial assets
(1
0.6 15.6 16.2 16.2
Trade and other receivables 1.2 115.6 116.8 116.8 6.2.2
Current financial assets
Trade and other receivables 537.1 537.1 537.1 6.2.1
0.6 1.2 668.3 670.1 670.1
Non-current financial liabilities
Financial liabilities 1,065.9 1,065.9 994.0 7.4.2
Trade and other liabilities
(2
4.6 0.0 21.4 26.0 26.0 6.3
Current financial liabilities
Financial liabilities 295.4 295.4 295.4 7.4.2
Trade and other liabilities
(2
0.3 402.3 402.6 402.6 6.3
4.9 0.0 1,785.0 1,789.9 1,718.0
1)
Other investments contain the Group’s listed and unlisted equity investments
2)
Excluding advances received
FINANCIAL STATEMENTS 2022
75
2021
EUR million
Financial
assets/liabilities
measured at
fair value through
profit or loss
Financial
assets/liabilities
measured at fair value
through other
comprehensive income
Financial
assets/liabilities
measured at
amortised
cost
Book
values
Fair
values Note
Non-current financial assets
Other financial assets
(1
0.8 15.6 16.4 16.4
Trade and other receivables 1.6 101.6 103.2 103.2 6.2.2
Current financial assets
Trade and other receivables 506.3 506.3 506.3 6.2.1
0.8 1.6 623.5 625.9 625.9
Non-current financial liabilities
Financial liabilities 1,214.8 1,214.8 1,239.8 7.4.2
Trade and other liabilities
(2
3.3 0.0 33.3 36.6 36.6 6.3
Current financial liabilities
Financial liabilities 118.4 118.4 118.4 7.4.2
Trade and other liabilities
(2
392.3 392.3 392.3 6.3
3.3 0.0 1,758.8 1,762.1 1,787.1
1)
Other investments contain the Group’s listed and unlisted equity investments
2)
Excluding advances received
The fair values of financial asset and liability items are presented in detail under the specified note number.
FINANCIAL STATEMENTS 2022
76
Financial assets and liabilities recognised at fair value
EUR million 2022 Level 1 Level 2 Level 3
Financial assets and liabilities measured at fair value through other comprehensive income
Electricity derivatives 1.2 1.2
Currency derivatives 0.0 0.0
Financial assets and liabilities measured at fair value through profit or loss
Listed equity investments 0.6 0.6
Contingent considerations in business combinations –4.9 –4.9
–3.1 0.6 1.1 –4.9
EUR million 2021 Level 1 Level 2 Level 3
Financial assets and liabilities measured at fair value through other comprehensive income
Electricity derivatives 1.6 1.6
Currency derivatives 0.0 0.0
Financial assets and liabilities measured at fair value through profit or loss
Listed equity investments 0.8 0.8
Contingent considerations in business combinations –3.3 –3.3
–0.9 0.8 1.6 –3.3
Items measured at fair value are categorised using a three-level value hierarchy. Level 1 includes financial instruments with quoted prices in active markets, such are listed shares owned by the
Group. Level 2 includes instruments with observable prices based on market data, such are electricity and currency derivatives. Level 3 includes instruments with prices that are not based on
observable market data, but instead, on the company’s internal information, such are Group’s contingent considerations relating to business combinations.
Level 3 reconciliation
Contingent considerations related to business acquisitions
EUR million 2022 2021
At the beginning of the period 3.3 4.4
Increase in contingent consideration 1.7
Payment of contingent consideration –0.1 –1.1
Translation differences 0.0
At the end of the period 4.9 3.3
According to the management’s estimation for the financial instruments valued at Level 3, replacing one or more of the pieces of fair value measurement data with a possible alternative
assumption would not significantly change the fair value of the items, considering the small total amount of underlying liabilities.
FINANCIAL STATEMENTS 2022
77
7.4.4 Derivative instruments
Nominal values of derivatives
2022 2021
Period of validity Period of validity
EUR million Less than 1 year 1–5 years Over 5 years Less than 1 year 1–5 years Over 5 years
Electricity derivatives 5.8 1.9
Currency derivatives 3.3 3.5
9.1 5.5
Fair values of derivatives
2022 2021
EUR million
Positive
fair value
Negative
fair value Total
Positive
fair value
Negative
fair value Total
Electricity derivatives 1.2 1.2 1.6 1.6
Currency derivatives 0.0 0.0 0.0 0.0
1.2 0.0 1.1 1.6 0.0 1.6
Determination of fair value and categorisation
The fair value of derivative instruments is determined using quoted prices in active markets.
The Group recognises the derivative instruments at the fair value hierarchy Level 2. Please see note 7.4.3.
Accounting principles – Derivative instruments:
Derivatives are recognised at fair value as financial assets or liabilities on the date of acquisition. Gains and losses arising from the fair value remeasurements are recognised in accordance with
the nature of derivative contracts. Outstanding derivatives that do not qualify for hedge accounting are measured at fair value at the end of the reporting period and the fair value changes are
immediately recognised in financial items on the income statement. The fair value of derivatives is expected to approximate the quoted market prices or, if the quoted market prices are not
available, the value is estimated using commonly used valuation methods.
The Group applies hedge accounting for electricity price risk and the Swedish krona, and treats electricity derivative contracts as cash flow hedges. The change in fair value of effective portion of
derivatives that qualify for hedge accounting is recognised in other comprehensive income and presented in the equity hedge revaluation reserve (as a part of “Other reserves”). Gains or losses
on derivative instruments accumulated in equity are expensed when any hedged item affects profit or loss. The ineffective portion of the derivatives is recognised in other operative income
and expenses on the income statement. The hedge accounting is discontinued when the hedge contract is expired, sold, terminated or completed. Any cumulative gain or loss arising from the
hedge instrument remains in equity until the expected transaction is realised.
FINANCIAL STATEMENTS 2022
78
Accounting principles – Financial assets and liabilities:
Financial assets:
Acquisition and sale of financial assets are recognised on the settlement date. The Group derecognises financial assets when its contractual rights to the cash flows from the financial asset
expire or when it has transferred substantially all the risks and rewards to an external party.
Cash and cash equivalents include cash at hand and bank deposits as well as highly liquid short-term investments with maturities up to 3 months.
Investments in shares, excluding investments in associated companies and mutual real-estate companies, are classified as other financial assets and generally measured at fair value.
Investments in unlisted companies are recognised at original acquisition cost less any impairment. Investments in listed companies are measured at fair value, based on share transactions.
Equity investments are included in non-current assets. On 31 December 2022, Group’s equity investments consisted mainly of investments in unlisted companies.
Financial liabilities:
Financial liabilities are initially recognised at fair value equalling the net proceeds received and subsequently measured at amortised cost, using the effective interest rate method. The
transaction costs are included in the original acquisition cost of financial liabilities. Financial liabilities are recognised in non-current and current liabilities, and they may be non-interest-bearing
or interest-bearing.
In cases where the terms of the financial liability measured at amortised cost are amended in such a way that the change does not result in derecognition of the liability from the balance sheet,
the Group must nevertheless recognise the profit or loss in the income statement. The profit or loss is calculated as the difference between the original contractual cash flows and the cash
equivalents, discounted at the original effective interest rate of amended agreements.
Lease liabilities:
Lease liabilities are initially measured at present value of future lease payments. The estimated lease term includes the non-cancellable period of the lease together with periods covered by
termination and extension options, if exercise of these options is reasonably certain. Company has discounted the future lease payments using the borrowing rate based on duration of the
estimated lease term. The lease liability is initially measured using the actual value of an index at the commencement date. The lease liabilities are remeasured if the changes are reflected in the
cash flow or if the Group reassesses whether it is reasonably certain to exercise a possible option.
Classification of assets and liabilities:
The Group’s financial assets and liabilities are classified as financial assets and liabilities measured at amortised cost, financial assets and liabilities measured at fair value through other
comprehensive income, and financial assets and liabilities measured at fair value through profit or loss. Financial assets and liabilities measured at amortised cost include fixed-term contracts
the cash flow of which include payments of principal and interest on the principal amount outstanding. Financial assets and liabilities measured at fair value through other comprehensive
income include financial items that are expected both to collect contractual cash flows and to sell financial assets/liabilities. Financial assets and liabilities measured at fair value through profit
or loss include items that do not meet the criteria of the other groups.
The Group categorises electricity and currency derivatives that qualify for hedge accounting as financial assets or liabilities measured at fair value through other comprehensive income.
Contingent considerations in business combinations and listed equity investments are recognised as financial assets or liabilities measured at fair value through profit or loss. Other financial
assets and liabilities are measured at amortised cost.
FINANCIAL STATEMENTS 2022
79
8.1.1 Income taxes
EUR million 2022 2021
Taxes for the period –83.0 –77.0
Taxes for previous periods –0.1 0.0
Deferred taxes –0.2 2.1
I/S
–83.2 –74.9
Income taxes recognised directly in comprehensive income:
2022 2021
EUR million
Before
taxes
Tax
effect
After
taxes
Before
taxes
Tax
effect
After
taxes
Remeasurements of the net defined benefit liability 0.5 –0.1 0.4 –3.5 0.7 –2.8
Cash flow hedge –0.4 0.1 –0.3 1.1 –0.2 0.9
0.0 0.0 0.0 –2.3 0.5 –1.9
Translation differences do not include a tax effect.
Reconciliation of the tax expense on the income statement and taxes calculated at the Group’s domestic statutory tax rate 20 (20):
EUR million 2022 2021
I/S
Profit before tax 456.0 418.4
Tax according to the domestic tax rate –91.2 –83.7
Tax effects of the following:
Tax-free income 0.2 0.3
Non-deductible expenses –0.7 –0.2
Tax effect related to the foreign subsidiaries 10.3 9.1
Usage of tax losses, for which no deferred tax was recognised 0.2
Loss for the period, for which no deferred tax asset is recognised –1.6 –0.5
Taxes for previous periods –0.1 0.0
Other items –0.4 0.1
I/S
Taxes on the income statement –83.2 –74.9
Effective tax rate, % 18.2 17.9
Accounting principles – Income taxes for the period and deferred taxes:
Taxes recognised on the income statement include current and deferred taxes. Income taxes for the financial year are calculated on the net profit for the period at the current tax rate and are
adjusted by taxes for the prior periods.
The reporting period as well as prior reporting periods may be subject to a tax audit, which may subsequently result in a change in tax decisions, additional tax payments or refunds.
Deferred taxes are calculated from all temporary differences arising between the tax bases of assets and liabilities and their carrying values in the consolidated financial statements. Please
refer to the next note 8.1.2 for details.
The global minimum tax regulation enters into force in 2024 and applies to Elisa. Elisa has started to analyse the impact of the regulation.
2.1 Operating seg-
ments and geograph-
ical areas
2.2 Items af-
fecting com-
parability
8 Other notes
8.1 Taxes
FINANCIAL STATEMENTS 2022
80
8.1.2 Deferred tax assets and liabilities
The change in deferred tax assets and liabilities during 2022
Deferred tax assets
EUR million 1 Jan. 2022
Recognised
on the income
statement
Recognised on
consolidated
statement of
comprehensive
income
Translation
differences 31 Dec. 2022
Provisions 1.2 –0.4 0.8
Confirmed losses 0.7 –0.4 0.3
Right-of-use assets 1.6 0.1 1.7
Internal margins 2.8 0.0 2.8
Share-based incentive plans 3.0 0.9 3.9
Pension obligations 3.0 –0.1 –0.1 2.8
Other temporary differences 0.9 –0.2 0.1 0.0 0.8
B/S 13.1 0.0 0.0 0.0 13.1
Deferred tax liabilities
EUR million 1 Jan. 2022
Recognised
on the income
statement
Business
combinations
Translation
differences 31 Dec. 2022
Fair value measurement of tangible and intangible assets in business combinations 3.9 –1.2 0.4 0.0 3.0
Accumulated depreciation differences 16.4 1.0 17.4
Finance lease agreements 0.6 0.7 1.3
Customer contracts 1.9 –0.1 1.8
Bonds 0.8 –0.1 0.7
Other temporary differences 1.6 –0.1 1.6
B/S 25.3 0.1 0.4 0.0 25.7
Deferred income tax assets recognised for tax losses are carried forward to the extent that the realisation of the related tax benefit through future profits is probable. On 31 December 2022, EUR
0.3 (0.7) million deferred tax asset was recognised for confirmed losses, that will expire in 2026. At the end of the reporting period, the Group had EUR 18.8 (14.0) million of unused tax losses for
which no tax assets have been recognised.
FINANCIAL STATEMENTS 2022
81
The change in deferred tax assets and liabilities during 2021
Deferred tax assets
EUR million 1 Jan. 2021
Recognised
on the income
statement
Recognised on
consolidated
statement of
comprehensive
income
Translation
differences 31 Dec. 2021
Provisions 0.7 0.5 1.2
Tax losses carried forward 1.0 –0.3 0.7
Right-of-use assets 1.5 0.0 1.6
Internal margins 2.6 0.2 2.8
Share-based incentive plans 2.5 0.4 3.0
Pension obligations 2.6 –0.3 0.7 3.0
Other temporary differences 1.0 0.1 –0.2 0.0 0.9
B/S 11.9 0.8 0.5 0.0 13.1
Deferred tax assets
EUR million 1 Jan. 2021
Recognised
on the income
statement
Business
combinations
Translation
differences 31 Dec. 2021
Fair value measurement of tangible and intangible assets in business combinations 4.9 –1.4 0.4 3.9
Accumulated depreciation differences 16.0 0.4 16.4
Finance lease contracts 0.8 –0.2 0.6
Customer contracts 1.8 0.1 1.9
Bonds 0.9 –0.1 0.8
Other temporary differences 1.7 –0.1 0.0 1.6
B/S 26.2 –1.3 0.4 0.0 25.3
Accounting principles – Deferred tax assets and liabilities:
Deferred taxes are calculated from the temporary differences arising between carrying amount and the tax base. The temporary tax liabilities are not recognised if they arise from initial
recognition of goodwill or from the initial recognition of an asset/liability other than in a business combination which, at the time of the transaction, does not affect either the accounting or the
taxable profit. No deferred tax is recognised on valuation differences of shares for which the sales profit would be tax-deductible.
Deferred tax assets are recognised only to the extent that it is probable that they can be utilised against future taxable income. Deferred tax liabilities are recognised on the balance sheet in
total, with the exception for Estonian subsidiaries where no tax liability has been recognised for the untaxed retained earnings EUR 196.9 million, as no profit distribution decision or plans for
profit distribution exist for the time being.
Deferred tax liabilities and assets are not offset.
Accounting policies that require management’s judgements – Deferred tax assets:
Particularly at the end of each financial period, the Group assesses the probability of subsidiaries generating taxable income against which unused tax losses can be utilised. The
appropriateness for recognising other deferred tax assets is also determined at the end of each financial period. Changes in the estimates may lead to the recognition of significant tax
expenses.
FINANCIAL STATEMENTS 2022
82
8.2 Provisions
EUR million
Termination
benefits Other Total
1 Jan. 2021 1.7 1.7 3.4
Increase in provisions 7.6 7.6
Utilised provisions –3.5 –3.5
Release of unused provisions –1.6 –1.6
31 Dec. 2021 4.3 1.7 5.9
Increase in provisions 2.0 2.0
Utilised provisions –3.8 –3.8
Release of unused provisions –0.5 –0.5
31 Dec. 2022 2.0 1.7 3.7
EUR million 2022 2021
B/S Long-term provisions 2.9 2.8
B/S Short-term provisions 0.8 3.1
3.7 5.9
Termination benefits
As a part of the Group’s rationalisation, Elisa has carried out statutory employee negotiations leading to personnel reductions in 2022. The restructuring provision includes provisions for
both unemployment pensions and other expenses due to redundancies. The provisions associated with redundancies will be realised during 2023–2024 and the provision associated with
unemployment pensions will be realised in 2023–2024.
Other provisions
Other provisions include environmental provisions made for telephone poles.
Accounting principles – Provisions and contingent liabilities:
A provision is recognised when the Group has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation,
and the amount of the obligation can be reliably estimated.
Contingent liabilities are potential liabilities arising from past events that may occur depending on the outcome of uncertain future events which are beyond the control of the Group. Also
a present obligation that is unlikely to require settlement of a payment obligation or the amount of which cannot be reliably measured is a contingent liability. Contingent liabilities are not
recognised in the statement of financial position. Contingent liabilities are presented in note 8.4.
2.3 Revenue
FINANCIAL STATEMENTS 2022
83
8.3 Related party details
The Group’s related parties include the parent company, subsidiaries, associates and joint ventures. The related parties also include Elisa’s Board of Directors, the CEO, the Executive Board as well
as entities controlled by them and close members of their family.
Transactions carried out with related parties:
2022
EUR million Revenue Purchases Receivables Liabilities
Associates 0.5 1.0 0.6 0.0
2021
EUR million
Associates 0.5 0.8 0.6 0.0
The employee benefits of the Group’s related parties are presented in Note 4.1
8.3.1 Group companies
The parent company of the Group is Elisa Corporation.
Subsidiaries Domicile
Group’s
ownership, %
Banana Fingers Limited Bristol, UK 100
Digiset Oy Helsinki, Finland 100
Elisa IndustrIQ Oy Helsinki, Finland 100
Elisa camLine Holding GmbH Petershausen, Germany 100
camLine GmbH Petershausen, Germany 100
camLine Dresden GmbH Dresden, Germany 100
camLine Solutions S.r.l. Iași, Romania 100
camLine USA Inc. Atlanta GA, USA 100
camLine Hungary Kft. Szombathely, Hungary 60
camLine Pte. Ltd. Singapore, Singapore 100
camLine Taiwan New Taipei City, Taiwan 100
camLine sdn. Bhd. Bayan Lepas, Malaysia 100
PT Elisa camLine Indonesia Surabaya, Indonesia 100
TenForce NV Leuven, Belgium 50
TenForce USA LLC Houston TX, USA 50
Process Data Control Corporation Arlington TX, USA 50
Elisa Deutschland GmbH Aachen, Germany 100
Elisa Finance Oü Tallinn, Estonia 100
Elisa France SAS Les Sorinieres, France 100
Elisa Hong Kong Limited Hong Kong, Hong Kong 100
Elisa Santa Monica Oy Helsinki, Finland 100
Elisa Eesti AS Tallinn, Estonia 100
Elisa Videra Oy Helsinki, Finland 100
2.4 Other operating income
FINANCIAL STATEMENTS 2022
84
Elisa Videra Inc. Los Angeles CA, USA 10 0
Elisa Videra Italy S.r.l San Genesio, Italia 100
Elisa Videra Norge As Oslo, Norway 100
Elisa Videra Singapore PTE Ltd. Singapore, Singapore 100
Elisa Videra Spain S.L Madrid, Spain 100
Elisa Videra UK Ltd. London, UK 100
Elistar AB Stockholm, Sweden 100
Cardinality Ltd Guildford, England 100
Cardinality SP. z.o.o. Lublin, Poland 100
Cardinality Inc. Delaware DE, USA 100
Frinx s.r.o. Bratislava, Slovakia 100
Frinx Corp New York NY, USA 100
Polystar Egypt LLC Cairo, Egypt 100
Polystar Instruments Canada Inc. Toronto, Kanada 100
Polystar Instruments Inc. Frisco,TX, USA 100
Polystar OSIX AB Stockholm, Sweden 100
Polystar Asia Private Ltd. Singapore, Singapore 100
Polystar Australia Pty Sydney, Australia 100
P-OSS Solutions S.L.U. Bilbao, Spain 100
Polystar Ryssland LLC Moscow, Russia 100
Enia Oy Helsinki, Finland 100
Epic TV SAS Sallanches, France 100
Fenix Solutions Oy Turku, Finland 100
Fonum Oy Helsinki, Finland 100
Karelsat Oy Joensuu, Finland 100
Kepit Systems Oy Vaasa, Finland 70
Kiinteistö Oy Raision Luolasto Espoo, Finland 100
Kiinteistö Oy Rinnetorppa Kuusamo, Finland 100
Kiinteistö Oy Tapiolan Luolasto Espoo, Finland 100
LE-Kuitu Oy Salo, Finland 100
LNS Kommunikation AB Stockholm, Sweden 100
Preminet Oy Helsinki, Finland 100
Sutaria Services Inc. Murphy TX, USA 57
Watson Nordic Oy Vaasa, Finland 100
Joint arrangements
Kiinteistö Oy Brahenkartano Turku, Finland 60
Significant changes in ownership of subsidiaries are presented in note 3. Other changes in group structure is described further.
On 25 October 2022 Elisa Eesti AS ja Santa Monica Networks AS have merged with Elisa Teleteenused AS. After the mergers the name of Elisa Teleteenused AS has changed to Elisa Eesti AS.
Subsidiaries Domicile
Group’s
ownership, %
FINANCIAL STATEMENTS 2022
85
Accounting principles – Consolidation principles, subsidiaries:
The consolidated financial statements include the parent company, Elisa Corporation, and those subsidiaries over which the Group has control. The group controls an entity when the group is
exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through its power over the entity.
Subsidiaries are consolidated from the date the Group obtains control and divested companies until the loss of control. Acquisition method is used in the accounting for the elimination of
internal ownership. All intra-group transactions, gains on the sale of inventories and fixed assets, intra-group receivables, payables and dividends are eliminated.
Profit for the period attributable to the equity holders of the parent and non-controlling interests is presented separately in the consolidated income statement. Non-controlling interests are
presented separately from the equity of the owners of the parent in the consolidated statement of financial position. Losses of subsidiaries are allocated to non-controlling interests even if they
exceed their share of ownership.
Accounting principles – Consolidation principles, joint arrangements:
Joint arrangements are arrangements over which the Group exercises joint control with one or more parties. A joint arrangement is either a joint venture or a joint operation. A joint venture is
a joint arrangement, where the Group has rights to the net assets of the arrangement. A joint operation is a joint arrangement where the Group has rights to the assets and obligations for the
liabilities relating to the arrangement.
The only joint arrangement owned by the Group, Kiinteistö Oy Brahenkartano, is a joint operation, which is consolidated using the proportional consolidation method. 60 per cent of the assets,
liabilities, income and expenses of the joint operation are consolidated to the Group’s financial statements. The company owns and manages a building and a site in Turku. Elisa is mainly
entitled to manage office and telecom facilities with the shares owned.
FINANCIAL STATEMENTS 2022
86
8.3.2 Investments in associated companies
Aggregated financial information of associates
EUR million 2022 2021
I/S
Group’s share of associated companies’ profit –0.7 –0.5
B/S Group’s investments in associated companies 9.9 10.6
EUR million 2022 2021
Balance at the beginning of the period 10.6 1.4
Additions 0.0 9.8
Reclassifications 0.0 –0.1
Share of profits for the period –0.7 –0.5
Dividends received 0.0
B/S Balance at the end of the period 9.9 10.6
During comparison period Elisa acquired 19 per sent of Italian industrial software provider specialised in innovative IT solutions for Digital Supply Chain and Smart Manufacturing, sedApta Group.
The companies are consolidated as associates on the basis of significant influence.
FINANCIAL STATEMENTS 2022
87
Associates Domicile ownership,%
FNE-Finland Oy Kontiolahti, Finland 45.9
Kiinteistö Oy Helsingin Sentnerikuja 6 Helsinki, Finland 50.0
Kiinteistö Oy Herrainmäen Luolasto Tampere, Finland 50.0
Kiinteistö Oy Lauttasaarentie 19 Helsinki, Finland 41.7
Kiinteistö Oy Pohjanplassi Lapua, Finland 39.0
Kiinteistö Oy Riihimäen Maisterinkatu 9 Riihimäki, Finland 37.0
Kiinteistö Oy Runeberginkatu 43 Helsinki, Finland 29.6
Kiinteistö Oy Stenbäckinkatu 5 Helsinki, Finland 40.0
sedApta Group Milan, Italy 19.0
Suomen Numerot NUMPAC Oy Helsinki, Finland 33.3
Tele Scope Oy Espoo, Finland 22.0
KE-Masto Oy Kajaani, Finland 49.5
Accounting principles – Consolidation principles, associated companies
Associated companies are entities over which the Group exercises significant influence. Significant influence is presumed to exist when the Group owns over 20 per cent of the voting rights
of the company or when the Group otherwise exercises significant influence, but does not exercise control. Associated companies are consolidated in accordance with equity method. If the
Group’s share of losses of an associated company exceeds its interest in the associated company, the investment is recognised on the balance sheet at zero value and the Group discontinues
recognising its share of further losses unless the Group has other obligations for the associated company. Associated companies are consolidated from the date the Group obtains significant
influence and divested associated companies are consolidated until the loss of significant influence.
FINANCIAL STATEMENTS 2022
88
8.4 Off-balance sheet leases and other commitments      
Leases
Group as a lessee
Lease payments related to off-balance sheet lease commitments:
EUR million 2022 2021
Lease payments associated with short-term leases 31.9 32.8
Lease payments associated with low-value assets 4.6 4.2
36.5 37.0
Future minimum lease payments under non-cancellable off-balance sheet leases:
EUR million 2022 2021
Within one year 13.2 12.5
Later than one year, but not later than five years 4.3 4.7
Later than five years 1.0 1.2
18.4 18.4
Lease payments are presented without value added tax.
Group as a lessor
Future minimum lease receivables under non-cancellable operating leases:
EUR million 2022 2021
Within one year 3.6 2.5
Later than one year, but not later than five years 0.7 0.9
4.3 3.3
2.5 Operating expenses
FINANCIAL STATEMENTS 2022
89
Accounting principles – Leases:
The group as a lessee
The Group recognises rental expenses for short-term leases and low-value assest in the income statements and presents such contracts as off-balance sheet liabilities.
The group as a lessor
The Group acts as a lessor in two different types of lease arrangements that are accounted for as operating leases: rental income from telecom premises and carrier services is recognised as
revenue over the lease period, and rental income from real estate is recognised as other operating income. The lease contract periods are mainly short with durations of 1–6 months.
Rental income is recognised over the lease period.
Collateral, commitments and other liabilities
EUR million
2022 2021
On behalf of own commitments
Mortgages 3.8
3.8
Guarantees 0.6
0.4
Deposits 0.6
0.4
On behalf of others
Guarantees 0.3
5.2
4.6
Other contractual obligations
Venture Capital investment obligation 0.5
0.8
Repurchase obligations
0.0
0.5 0.8
Real estate investments
VAT refund liability for real estate investments indicates the amount that may become completely non tax-deductible if the intended use of the property was to change.
On 31 December 2022, VAT refund liability for real estate investments was EUR 36.1 (33.2) million.
8.5 Events after the end of the reporting period
There were no significant events after the balance sheet date. .
2.6 Earnings per share
FINANCIAL STATEMENTS 2022
90
9.1 Key indicators describing the Group’s financial development
2022 2021 2020 2019 2018
INCOME STATEMENT
Revenue, EUR million 2,130 1,998 1,895 1,844 1,832
Change of revenue, % 6.6 5.5 2.8 0.7 2.5
EBITDA, EUR million 733 697 685 661 640
EBITDA as % of revenue 34.4 34.9 36.2 35.8 34.9
EBIT, EUR million 470 431 409 395 404
EBIT as % of revenue 22.1 21.6 21.6 21.4 22.0
Profit before tax, EUR million 456 418 398 372 381
Profit before tax as % of revenue 21.4 20.9 21.0 20.2 20.8
Return on equity (ROE), % 30.4 28.8 28.1 26.6 29.2
Return on investment (ROI), % 18.3 16.9 16.7 17.2 18.3
Research and development costs, EUR million 21 16 10 8 8
Research and development costs as % of revenue 1.0 0.8 0.5 0.4 0.5
BALANCE SHEET
Gearing ratio, % 101.9 101.2 101.9 103.0 94.8
Current ratio 1.0 1.4 1.3 1.2 1.0
Equity ratio, % 40.6 39.9 39.1 41.0 42.4
Non-interest bearing liabilities, EUR million 488 491 430 428 393
Interest bearing net debt 1,276 1,219 1,207 1,184 1,068
Balance sheet total, EUR million 3,101 3,028 3,041 2,814 2,669
INVESTMENTS
Investments in shares and business combinations, EUR million 25 28 70 83 14
CAPITAL EXPENDITURE
Gross investments, EUR million 290 265 266 256 254
Gross investments as % of revenue 13.6 13.3 14.1 13.9 13.9
PERSONNEL
Average number of employees during the period 5,523 5,391 5,097 4,882 4,814
Revenue/employee, EUR 1,000 386 371 372 378 380
The order book is not presented, as the information is not relevant due to the nature of the Group’s business.
3. Business acquisi-
tions and disposals
4. Personnel
9 Key Indicators
The key indicator tables are unaudited.
FINANCIAL STATEMENTS 2022
91
FORMULAE FOR FINANCIAL SUMMARY INDICATORS
EBITDA EBIT + depreciation, amortisation and impairment
EBIT
Profit for the period + income taxes + financial income and expenses + share of associated companies’ profit
Return on equity (ROE), %
Profit for the period
X 100
Total shareholders’ equity on average
Return on investment (ROI), %
Profit before taxes + interest and other financial expenses
X 100
Total equity + interest-bearing liabilities on average
Gearing ratio, %
Interest-bearing liabilities - cash and cash equivalents and financial assets at
fair value through profit or loss
X 100
Total shareholders’ equity
Current ratio
Current assets
Current liabilities - advance payments received
Equity ratio, %
Total shareholders’ equity
X 100
Balance sheet total - advance payments received
FINANCIAL STATEMENTS 2022
92
9.2 Alternative performance measures
(1
2022 2021 2020 2019 2018
INCOME STATEMENT
Comparable EBITDA, EUR million 735 706 685 668 639
Comparable EBITDA as % of revenue 34.5 35.3 36.2 36.2 34.9
Comparable EBIT, EUR million 472 439 415 402 403
Comparable EBIT as % of revenue 22.2 22.0 21.9 21.8 22.0
Comparable profit before tax, EUR million 458 427 399 379 380
Comparable profit before tax as % of revenue 21.5 21.4 21.0 20.5 20.8
Comparable return on equity (ROE), % 30.5 29.3 28.1 27.1 28.8
Comparable return on investment (ROI), % 18.4 17.2 16.7 17.5 18.3
Comparable earnings per share (EPS) 2.34 2.19 2.05 1.93 1.95
1)
 Other than the financial indicators defined by IFRS
4.1 Employee expenses
FINANCIAL STATEMENTS 2022
93
FORMULAE FOR ALTERNATIVE PERFORMANCE MEASURES
Comparable EBITDA EBIT + depreciation, amortisation and impairment +/- items affecting comparability
Comparable EBIT
Profit for the period + income taxes + financial income and expenses +
share of associated companies’ profit +/- items affecting comparability
Comparable profit for the period Profit for the period +/- items affecting comparability
Profit attributable to owners of the parent company
+/- items affecting comparability
Comparable EPS
Average number of shares during the period adjusted for share issues
Comparable return on equity (ROE), %
Profit for the period +/- items affecting comparability
X 100
Total shareholders' equity on average
Comparable return on investment (ROI), %
Profit before taxes + interest and other financial expenses
+/- items affecting comparability
X 100
Total equity + interest-bearing liabilities on average
Comparable cash flow after investments
Net cash flow from operating activities - net cash used in investing activities
+/- items affecting comparability
FINANCIAL STATEMENTS 2022
94
9.3. Per-share indicators
(1
2022 2021 2020 2019 2018
Share capital, EUR 83,033,008 83,033,008 83,033,008 83,033,008 83,033,008
Number of shares at year-end 160,259,695 160,187,301 160,082,908 159,897,796 159,723,252
Average number of shares 160,253,348 160,174,453 160,065,712 159,880,581 159,736,826
Number of shares at year-end, diluted 160,416,729 160,187,301 160,082,908 159,897,796 159,723,252
Average number of shares, diluted 160,410,382 160,174,453 160,065,712 159,880,581 159,736,826
Market capitalisation, EUR million
(2
8,276 9,056 7,508 8,241 6,037
Earnings per share (EPS), EUR 2.33 2.15 2.05 1.90 1.98
Dividend per share, EUR 2.15
(6
2.05 1.95 1.85 1.75
Payout ratio, % 92.1 95.6 95.1 97.6 88.5
Equity per share, EUR 7.78 7.48 7.39 7.19 7.05
P/E ratio 21.2 25.2 21.9 26.0 18.2
Effective dividend yield, %
(3
4.3 3.8 4.3 3.8 4.9
Share performance on Nasdaq Helsinki
Mean price, EUR 51.99 51.00 51.08 42.26 36.34
Closing price at year-end, EUR 49.46 54.12 44.87 49.25 36.08
Lowest price, EUR 45.57 45.10 40.79 35.51 31.68
Highest price, EUR 56.90 56.18 58.88 49.91 41.95
Trading of shares on Nasdaq Helsinki
(4
Total trading volume, 1,000 shares 71,229 81,557 122,497 96,662 104,879
Percentage of shares traded
(5
43 49 73 58 63
1)
The numbers of shares are presented without treasury shares held by Elisa Group.
2)
Calculated on the basis of the closing price on the last trading day of the year and the total number of shares at the end of the period (167 335 073).
3)
Calculated on the basis of the closing price on the last trading day of the year.
4)
Elisa share is also traded in alternative marketplaces. According to Bloomberg and the Fidessa Fragmentation report, the trading volumes in these markets in 2022 were approximately 293 (205) per cent of
Nasdaq Helsinki’s volumes.
5)
Calculated in proportion to the total number of shares at the end of the period.
6)
The Board of Directors proposes a dividend payment of EUR 2.15 per share.
4.2 Share-based incentives
FINANCIAL STATEMENTS 2022
95
FORMULAE FOR PER-SHARE INDICATORS
Earnings per share (EPS)
Profit for the period attributable to the equity holders of the parent
Average number of shares during the period adjusted for share issues
Dividend per share
(1
Dividend adjusted for share issues
Number of shares at the balance sheet date adjusted for share issues
Effective dividend yield, %
(1
Dividend per share
X 100
Share price at the balance sheet date adjusted for share issues
Payout ratio, %
(1
Dividend per share
X 100
Earnings per share
Equity per share
Equity attributable to equity holders of the parent
Number of shares at the balance sheet date adjusted for share issues
P/E ratio (price/earnings)
Share price on the balance sheet date
Earnings per share
1)
The calculation formulae apply also to the capital repayment indicators.
FINANCIAL STATEMENTS 2022
96
EUR million Note 31 Dec. 2022 31 Dec. 2021
Revenue 1 1,731.1 1,657.8
Other operating income 2 7.9 8.8
Materials and services 3 –670.9 –642.8
Employee expenses 4 –253.9 –253.4
Depreciation, amortisation and impairment 5 –261.4 –265.8
Other operating expenses –165.5 –156.9
Operating profit 387.3 347.6
Financial income and expenses 7 –13.5 –15.2
Profit before tax and appropriations 373.8 332.3
Appropriations 8 –10.9 –5.2
Income taxes 9 –78.9 –73.9
Profit for the period 284.1 253.2
Income statement, parent company, FAS
Contents THE REPORT OF THE BOARD OF DIREC-
TORS
FINANCIAL STATE-
MENTS
FINANCIAL STATEMENTS 2022
97
EUR million Note 31 Dec. 2022 31 Dec. 2021
ASSETS
Non-current assets
Intangible assets 10 276.4 304.5
Property, plant and equipment 10 694.3 682.1
Investments 11 863.7 861.0
1,834.4 1,847.6
Current assets
Inventories 12 64.6 56.1
Non-current receivables 13 123.7 122.0
Current receivables 14 439.1 419.3
Cash and bank receivables 53.0 72.7
680.4 670.3
TOTAL ASSETS 2,514.8 2,517.9
EQUITY AND LIABILITIES
Equity 15
Share capital 83.0 83.0
Treasury shares –124.4 –125.9
Reserve for invested non-restricted equity 77.8 77.8
Contingency reserve 3.4 3.4
Retained earnings 257.5 334.2
Profit for the period 284.1 253.2
581.5 625.7
Accumulated appropriations 83.3 77.8
Provisions 16 5.0 6.9
Liabilities
Non-current liabilities 17 1,007.3 1,163.8
Current liabilities 18 837.7 643.7
1,845.0 1,807.5
TOTAL EQUITY AND LIABILITIES 2,514.8 2,517.9
Balance sheet, parent company, FAS
Consolidated Financial State-
ments
FINANCIAL STATEMENTS 2022
98
EUR million
2022 2021
Cash flow from operating activities
Profit before appropriations and taxes
373.8
332.3
Adjustments:
Depreciation and amortisation
261.4
265.8
Other income and expenses with no payment relation
0.3
1.9
Other financial income (-) and expenses (+)
13.5
15.3
Gains (-) and losses (+) on the disposal of fixed assets –1.7
Gains (-) and losses (+) on the disposal of investments
0.0
–0.1
Change in provisions in the income statement
–2.0
2.8
Cash flow before changes in working capital
647.1
616.5
Change in working capital
Increase (-) / decrease (+) in current non-interest-bearing trade receivables
–12.8
–29.0
Increase (-) / decrease (+) in inventories
–8.8
–10.0
Increase (+) / decrease (-) in trade and other payables
0.9
38.0
Cash flow before financial items and taxes
626.3
615.5
Dividends received
6.1
0.9
Interests received
1.6
1.9
Interests paid
–15.9
–19.8
Income taxes paid
–81.7
–72.4
Net cash flow from operating activities
536.4
526.1
Cash flow statement, parent company, FAS
Consolidated income statement and statement of
comprehensive income
FINANCIAL STATEMENTS 2022
99
EUR million
2022 2021
Cash flow from investing activities
Capital expenditure
–252.1
–248.3
Proceeds from disposal of property, plant and equipment and intangible assets 2.4
Investments in shares and other investments
–4.9
–0.5
Proceeds from disposal of shares and other investments
0.0
0.1
Loans granted
–17.5
–38.4
Repayment of loan receivables
10.9
3.1
Net cash flow used in investing activities
–263.7
–281.7
Cash flow after investing activities
272.7
244.4
Cash flow from financing activities
Increase in long-term borrowings (+) 100.0
Decrease in long-term borrowings (-)
–100.0
–174.0
Increase (+) / decrease (-) in short-term borrowings
138.2
31.2
Group contributions received (+) / paid (-)
–2.7
0.0
Dividends paid
–327.9
–310.8
Net cash flow used in financing activities
–292.4
–353.6
Change in cash and cash equivalents
–19.8
–109.2
Cash and cash equivalents at the beginning of the period
72.7
181.9
Cash and cash equivalents at the end of the period
53.0
72.7
Cash flow statement, parent company, FAS
FINANCIAL STATEMENTS 2022
100
Accounting principles
Elisa Corporation’s financial statements have been prepared
in accordance with the accounting principles based on
Finnish accounting legislation.
Foreign currency items
Transactions denominated in foreign currencies are
recorded at the exchange rates prevailing on the dates of
transactions. At the end of the reporting period, assets and
liabilities denominated in foreign currencies are valued at
the exchange rates quoted by the European Central Bank
on the closing date.
Fixed assets
The carrying value of intangible and tangible assets is stated
at cost less accumulated depreciation, amortisation and
impairment. Internally generated fixed assets are measured
at variable costs.
The difference between depreciation according to plan and
total depreciation is presented under appropriations of the
parent company’s income statement and the accumulated
depreciation difference is presented under accumulated
appropriations in shareholders’ equity and liabilities on the
balance sheet. Depreciation according to plan is recognised
on a straight-line basis over the useful life from the original
acquisition cost.
The useful life according to plan for the different asset
groups:
Intangible rights 3–5 years
Goodwill 5–20 years
Other expenditure with long-term effects 5–10 years
Buildings and structures 25–40 years
Machinery and equipment in buildings 10–25 years
Telephone exchanges 6–10 years
Cable network 8–15 years
Telecommunication terminals 2–4 years
Other machines and equipment 3–5 years
Inventories
Inventories are stated at the lowest of variable cost,
acquisition price or the likely disposal or repurchase price.
Cost is determined using a weighted average price.
Marketable securities
Investments in money market funds are recognised at the
repurchase price. Investments in certificates of deposit and
commercial paper are recognised at the acquisition cost,
as the difference between the repurchase price and cost of
acquisition is not significant.
Revenue recognition principles
Revenue from deliverables is recognised at the time of
ownership transfer and revenue from services is recognised
when the services have been performed.
Interconnection fees that are invoiced from the customers
and paid as such to other telecommunication companies are
presented as an adjustment to revenue (Finnish Accounting
Standards Board 1995/1325).
The profit from the sale of business operations and fixed
assets, subsidies received and rental income from premises
are presented under other operating income. The loss from
the sale of fixed assets is presented under other operating
expenses. The profit or loss from the sale of shares is
presented in financial income and expenses.
Research and development
Research costs are expensed as they incur, with the exception
of development costs, which are capitalised. The capitalisation
criteria are met when the product is technically and
commercially feasible, and it is expected to generate future
economic benefit. Development costs initially recognised as
expenses cannot be capitalised subsequently.
Public grants associated with development projects are
recognised as other operating income when the related costs
are recognised as expenses. Public grants, associated with
capitalised development costs, are recorded as a reduction of
cost.
Future expenses and losses
Probable future expenses and losses related to the reported
or a prior financial period without corresponding income
are recognised on the income statement. Such items are
recognised on the balance sheet under provisions, if a reliable
estimate of the amount or timing of the obligation cannot be
made. Otherwise the obligation is recognised as accrual.
Income taxes
Income taxes for the financial year are recognised on the
income statement. No deferred tax liabilities or receivables
have been recognised in the financial statements.
Notes to the financial statements of the parent company

position
Consolidated cash

FINANCIAL STATEMENTS 2022
101
1. Revenue
EUR million 2022 2021
Revenue 1,794.3 1,721.0
Interconnection fees and other adjustments –63.2 –63.2
1,731.1 1,657.8
Geographical distribution
Finland 1,704.1 1,640.7
Rest of Europe 25.2 16.1
Other countries 1.8 1.0
1,731.1 1,657.8
2. Other operating income
EUR million 2022 2021
Gain on disposals of fixed assets 1.7
Other income
(1
7.9 7.1
7.9 8.8
1)
Other income include rental income from the real estate, management fee income charged from subsidiaries and other income not associated with ordinary operating activities.
3. Materials and services
EUR million 2022 2021
Materials, supplies and goods
Purchases during reporting period 370.1 340.2
Change in inventories –8.5 –8.1
361.6 332.2
External services 309.3 310.7
670.9 642.8
Notes
1. General accounting principles 1.1 Basic information about the
Group
Consolidated statement of changes
in equity
FINANCIAL STATEMENTS 2022
102
4. Employee expenses
EUR million 2022 2021
Salaries and wages 211.8 213.7
Pension costs 36.3 33.8
Other social security costs 5.8 5.9
253.9 253.4
Personnel on average 3,295 3,280
CEO remuneration, EUR 2022 2021
Fixed salaries 674,640.00 661,180.00
Performance-based bonus 365,376.72 251,030.79
Fringe benefits 20,077.03 23,363.00
Share-based payments
(1
715,958.19 865,204.04
1,776,051.94 1,800,777.83
1) 1
The maximum award allocated to the CEO under the share-based compensation plans equals the value of 134,430 shares. See Note 4.1 of the consolidated
 
In 2020, the Board of Directors agreed with the CEO of Elisa Corporation Veli-Matti Mattila that he will continue as CEO until further notice. Under previous executive agreement, the Group CEO
would have retired at the age of 60. The defined benefit pension plan includes vested rights. See Note 4.1 of the consolidated financial statements.
The remuneration of the Board members, EUR 2022 2021
Clarisse Berggårdh 95,400.00 95,050.00
Maher Chebbo 87,600.00 81,800.00
Kim Ignatius 97,000.00 81,650.00
Katariina Kravi 78,000.00
Pia Kåll 78,800.00
Topi Manner 79,600.00 80,850.00
Eva-Lotta Sjöstedt 85,200.00 82,450.00
Seija Turunen 2,400.00 96,650.00
Anssi Vanjoki 138,000.00 133,900.00
Antti Vasara 82,000.00 80,050.00
824,000.00 732,400.00
For year 2022, following compensations were decided by the Annual General Meeting to the Members of the Board: remuneration fee for the Chair EUR 130,000, for Deputy Chair and the Chairs
of the Committees EUR 85,000, and other Board members EUR 70,000; and additionally EUR 800 per meeting of the Board and of a Commetee. However, if a Board member lives permanently
outside Finland and is physically present in the Board or Committee meeting, which is held in a country other than his/her permanent home country, the meeting fee is EUR 1,600. According to
the decision of the Board on 6 April 2022, the annual remuneration was paid in Company shares on 27 April 2022. The outstanding remuneration amounts were paid net of tax, 60 per cent.
-
nancial statements
FINANCIAL STATEMENTS 2022
103
6. Auditor fees
EUR million 2022 2021
Auditing 0.2 0.1
Tax advisory services 0.0 0.0
Other services 0.0 0.1
0.2 0.2
7. Financial income and expenses
EUR million 2022 2021
Interest income and other financial income
Dividends received
From the Group companies 5.5 0.3
From others 0.4 0.6
5.9 0.9
Other interest and financial income
From the Group companies 0.4 0.2
Capital gains from investments 0.0 0.1
From others 1.7 1.6
2.1 1.9
8.0 2.8
Interest costs and other financial expenses
To the Group companies –6.1 –5.5
Impairment of investments in subsidiaries –2.1
To others –13.3 –12.6
–21.5 –18.1
–13.5 –15.2
5. Depreciation, amortisation and impairment
EUR million
2022 2021
Intangible assets 87.6 91.2
Property, plant and equipment 173.7 174.7
261.4 265.8
Specification of depreciation, amortisation and impairment by balance sheet items is included in note 10.
-
dards
2. Operational result
2.1 Operating segments and geo-
graphical areas
FINANCIAL STATEMENTS 2022
104
9. Income taxes
EUR million 2022 2021
Income taxes for the reporting period –78.9 –73.9
Taxes for previous periods 0.0
–78.9 –73.9
10. Intangible assets and property, plant and equipment
Intangible assets
2022
EUR million
Development
costs
Intangible
assets Goodwill
Other
intangible
assets
Intangible
assets under
construction Total
Acquisition cost at 1 Jan. 59.6 157.2 886.3 569.7 13.3 1,686.1
Additions 7.4 5.5 27.9 12.3 53.1
Reclassifications 7.0 0.4 5.7 –6.8 6.4
Acquisition cost at 31 Dec. 74.0 163.2 886.3 603.3 18.8 1,745.6
Accumulated depreciation and amortisation at 1 Jan. 50.5 86.5 758.6 485.9 1,381.5
Accumulated depreciation on disposals and reclassifications 0.0 0.0 0.0
Amortisation and depreciation for the period 7.7 8.6 38.9 32.5 87.6
Accumulated depreciation and amortisation at 31 Dec. 58.2 95.1 797.5 518.4 1,469.2
Book value at 31 Dec. 15.9 68.1 88.7 84.9 18.8 276.4
8. Appropriations
EUR million 2022 2021
Change in appropriations –5.5 –2.5
Group contributions received 8.1 4.2
Group contributions paid –13.5 –6.8
–10.9 –5.2

2.3 Revenue
2.4 Other operating in-
come
2.5 Operating expenses
FINANCIAL STATEMENTS 2022
105
Property, plant and equipment
2022
EUR million
Land and
water areas
Buildings and
constructions
Machinery and
equipment
Other
assets
Assets under
construction Total
Acquisition cost at 1 Jan. 10.0 227.7 3,943.8 35.1 31.8 4,248.4
Additions 0.0 15.6 155.3 21.4 192.3
Reclassifications –0.6 0.5 15.7 –21.9 –6.4
Acquisition cost at 31 Dec. 9.4 243.8 4,114.8 35.1 31.3 4,434.3
Accumulated depreciation at 1 Jan. 143.2 3,388.6 34.5 3,566.3
Accumulated depreciation on disposals and reclassifications 0.0 0.0 0.0
Depreciation for the period 8.0 165.7 0.0 173.7
Accumulated depreciation at 31 Dec. 151.2 3,554.3 34.6 3,740.0
Book value at 31 Dec. 9.4 92.6 560.5 0.6 31.3 694.3
FINANCIAL STATEMENTS 2022
106
Intangible Assets
2021
EUR million
Development
costs
Intangible
rights Goodwill
Other
intangible
assets
Intangible
assets under
construction Total
Acquisition cost at 1 Jan. 53.5 154.0 886.3 540.4 10.2 1,644.4
Additions 3.9 3.0 24.4 10.8 42.0
Reclassifications 2.1 0.2 4.9 –7.7 –0.4
Acquisition cost at 31 Dec. 59.6 157.2 886.3 569.7 13.3 1,686.1
Accumulated depreciation and amortisation at 1 Jan. 44.0 78.3 716.0 452.2 1,290.4
Amortisation and depreciation for the period 6.6 8.3 42.7 33.7 91.2
Accumulated depreciation and amortisation at 31 Dec. 50.5 86.5 758.6 485.9 1,381.5
Book value at 31 Dec. 9.1 70.7 127.7 83.8 13.3 304.5
Property, plant and equipment
2021
EUR million
Land and
water areas
Buildings and
constructions
Machinery and
equipment
Other
assets
Assets under
construction Total
Acquisition cost at 1 Jan. 9.9 216.6 3,766.6 35.1 25.1 4,053.3
Additions 0.0 11.3 163.2 20.7 195.2
Disposals 0.0 –0.5 0.0 –0.5
Reclassifications 0.0 0.3 14.1 –14.0 0.4
Acquisition cost at 31 Dec. 10.0 227.7 3,943.8 35.1 31.8 4,248.4
Accumulated depreciation at 1 Jan. 135.0 3,222.4 34.5 3,392.0
Accumulated depreciation on disposals and reclassifications –0.3 0.0 –0.3
Depreciation for the period 8.5 166.1 0.0 174.7
Accumulated depreciation at 31 Dec. 143.2 3,388.6 34.5 3,566.3
Book value at 31 Dec. 10.0 84.5 555.3 0.6 31.8 682.1
FINANCIAL STATEMENTS 2022
107
11. Investments
Investments in Receivables from
2022
EUR million Subsidiaries Associates
Other
companies
Group
companies
Other
Other companies Total
Acquisition cost at 1 Jan. 837.7 6.2 22.9 1.6 0.1 868.5
Additions 4.5 0.0 0.3 4.9
Disposals 0.0 0.0 –0.1 –0.1
Acquisition cost at 31 Dec. 842.2 6.3 23.3 1.5 0.0 873.3
Impairment at 1 Jan. –3.3 –0.1 –4.1 –7.5
Additions –1.8 –0.2 –2.1
Impairment at 31 Dec. –5.1 –0.1 –4.3 –9.6
Book value at 31 Dec. 837.1 6.2 18.9 1.5 0.0 863.7
A list of the Group and associated companies is available under Note 8.3 of the consolidated financial statements.
Investments in Receivables from
2021
EUR million Subsidiaries Associates
Other
companies
Group
companies
Other
Other companies Total
Acquisition cost at 1 Jan. 837.5 6.2 22.5 1.6 0.1 867.9
Additions 0.2 0.4 0.6
Disposals 0.0 0.0 0.0
Acquisition cost at 31 Dec. 837.7 6.2 22.9 1.6 0.1 868.5
Impairment at 1 Jan. –3.3 –0.1 –4.1 –7.5
Impairment at 31 Dec. –3.3 –0.1 –4.1 –7.5
Book value at 31 Dec. 834.4 6.1 18.8 1.6 0.1 861.0
2.6 Earnings per share
FINANCIAL STATEMENTS 2022
108
12. Inventories
EUR million 2022 2021
Materials and supplies 21.3 13.9
Finished goods 43.4 42.2
64.6 56.1
13. Non-current receivables
EUR million 2022 2021
Receivables from the Group companies
Loan receivables
26.2
24.6
Receivables from others
Trade receivables
84.9
81.8
Prepayments and accrued income
(1
12.6
15.7
97.5
97.4
123.7
122.0
1)
Breakdown of prepayments and accrued income
Rent advances
8.7
8.7
Transaction costs and losses related to loan issuance
3.9
6.9
12.6
15.7
3. Business acquisitions and disposals
4. Personnel
FINANCIAL STATEMENTS 2022
109
14. Current receivables
EUR million 2022 2021
Receivables from the Group companies
Loan receivables
32.8
28.1
Trade receivables
3.3
2.3
Prepayments and accrued income
1.4
1.3
Other receivables
8.1
4.2
45.7
35.8
Receivables from the associated companies
Loan receivables
0.0
Trade receivables
0.1
0.1
0.1
0.1
Receivables from others
Trade receivables
326.0
309.9
Loan receivables
0.0
Prepayments and accrued income
(1
55.5
60.7
Other receivables
11.8
12.9
393.3
383.5
439.1
419.3
1)
Breakdown of prepayments and accrued income
Interests
0.2
Rent advances
1.4
1.4
Transaction costs and losses related to loan issuance
3.0
3.1
Income taxes
0.9
Other business expense advances paid 50.0 56.2
55.5
60.7
4.1 Employee expenses
FINANCIAL STATEMENTS 2022
110
15. Equity
EUR million 2022 2021
Share capital at 1 Jan. 83.0 83.0
Share capital at 31 Dec. 83.0 83.0
Treasury shares at 1 Jan. –125.9 –128.2
Disposal of treasury shares 1.6 2.3
Treasury shares at 31 Dec. –124.4 –125.9
Reserve for invested non-restricted equity at 1 Jan. 77.8 77.8
Reserve for invested non-restricted equity at 31 Dec. 77.8 77.8
Contingency reserve at 1 Jan. 3.4 3.4
Contingency reserve at 31 Dec. 3.4 3.4
Retained earnings at 1 Jan. 587.4 648.5
Dividend distribution –328.5 –312.3
Withdrawal of dividend liabilities 0.2 0.3
Disposal of treasury shares –1.6 –2.3
Retained earnings at 31 Dec. 257.5 334.2
Profit for the period 284.1 253.2
Total equity 581.5 625.7
Distributable earnings
Retained earnings 257.5 334.2
Treasury shares –124.4 –125.9
Reserve for invested non-restricted equity 77.8 77.8
Development costs –20.5 –12.3
Profit for the period 284.1 253.2
474.6 526.9
4.2 Share-based incentives
FINANCIAL STATEMENTS 2022
111
16. Provisions
EUR million 2022 2021
Provision for unemployment pensions 4.2 4.3
Other provisions
(1
0.8 2.6
5.0 6.9
1)
Other provisions consist of salaries, including related statutory employee costs for employees not required to work during their severance period and a provision for other operating expenses.
Provisions of EUR 3,0 (3,5) million were used and EUR 1,1 (1,6) million were reversed as unused in 2022.
17. Non-current liabilities
EUR million 2022 2021
Interest-bearing
Liabilities to others
Bonds 900.0 900.0
Loans from the financial institutions 100.0 250.0
1,000.0 1,150.0
Non-interest bearing
Liabilities to others
Trade payables 1.4 8.1
Accruals and deferred income
(1
5.9 5.7
7.3 13.8
1,007.3 1,163.8
Liabilities maturing after five years
Bonds 300.0
300.0
1)
Breakdown of accruals and deferred income
Rent advances 5.9 5.7
4.3 Pension obligations
5. Tangible and Intangible assets
FINANCIAL STATEMENTS 2022
112
18. Current liabilities
EUR million 2022 2021
Interest-bearing
Liabilities to the Group companies
Cash Pool account 232.8 219.6
232.8 219.6
Liabilities to others
Loans from the financial institutions 150.0 100.0
Commercial paper 125.0
275.0 100.0
507.8 319.6
Non-interest bearing
Liabilities to the Group companies
Trade payables 6.8 7.2
Other liabilities 13.7 7.0
20.5 14.2
Liabilities to the associates
Trade payables 0.0 0.0
0.0 0.0
Liabilities to others
Advances received 5.2 4.9
Trade payables 173.3 174.8
Accrued liabilities
(1
56.0 54.7
Other liabilities 75.0 75.4
309.4 309.9
329.9 324.1
837.7 643.7
1)
Breakdown of accrued liabilities
Salaries, wages and social security costs 48.2 45.5
Interests 5.5 5.5
Direct taxes 1.9
Rent advances 1.0 0.9
Income received in advance 0.9 0.5
Others 0.4 0.4
56.0 54.7
5.1 Depreciation, amortisation and
impairment
FINANCIAL STATEMENTS 2022
113
19. Lease commitments and other liabilities
Collateral
EUR million
2022 2021
On behalf of own commitments
Bank deposits
0.3
0.3
Guarantees
0.2
0.5
0.3
Lease commitments
EUR million
2022 2021
Real estate leases
(1
Within one year
28.7
27.7
Later that one year, but not later that five years
40.1
47.6
Later than five years 62.6 63.6
131.4
138.9
Other lease commitments
(2
Within one year
3.4
3.8
Later that one year, but not later that five years
3.7
3.8
7.1
7.5
Total leases
138.6
146.4
Other commitments
EUR million
2022 2021
Venture Capital investment obligation
0.5
0.8
Repurchase obligations 0.0
0.5 0.8
1)
 
2)
Lease liabilities consist mainly of car and IT equipment leases.
Real estate leases are presented at nominal values.
Rental liabilities are exclusive of value added tax, except for vehicle lease liabilities.
5.2 Property, plant and equipment
FINANCIAL STATEMENTS 2022
114
Derivative instruments
EUR million 2022 2021
Currency derivatives
Nominal value 3.3 3.5
Fair value 0.0 0.0
Electricity derivatives
Nominal value 5.8 1.9
Fair value 1.2 1.6
Elisa hedges electricity purchases through physical purchase agreements and derivatives. The electricity price risk is assessed at a five-year period. Electricity derivatives are subject to hedge
accounting.
The hedging rate for purchases during following years,% 2022 2021
0–1 years 86.6 93.1
1–2 years 60.1 30.6
2–3 years 38.9
3–4 years 37.8
4–5 years 36.7
Real-estate investments
On 31 December 2022, the VAT refund liability of real-estate investments was EUR 36.1 (33.2) million.
FINANCIAL STATEMENTS 2022
115
OSAKKEET JA
OSAKKEENOMISTAJAT
1. Share capital and shares
The company’s paid-up share capital registered in the Trade
Register stood at EUR 83,033,008 at the end of the financial
year.
At the end of the financial year, the number of Elisa
Corporation shares was 167,335,073, all within one share
series.
2. Authorisations of the
Board of Directors
On 8 April 2022, the Annual General Meeting authorised
the Board of Directors to decide on a new share issue,
transfer of treasury shares owned by the company and/or
granting of special rights referred to in Chapter 10, Section
1 of the Finnish Companies Act subject to the following:
The authorisation allows the Board of Directors to issue a
maximum of 15,000,000 shares in one or several issues. The
share issue and shares granted by virtue of special rights
are included in the aforementioned maximum number. The
maximum number is approximately 9 per cent of the entire
stock. The share issue can be free or for consideration and
can also be directed to the Company itself. The authorisation
entitles the Board to make a directed issue. The authorisation
may be used for making acquisitions or implementing other
arrangements related to the Company’s business, to finance
investments, to improve the Company’s financial structure,
or for other purposes decided by the Board of Directors. The
Board of Directors shall have the right to decide on all other
matters related to the share issue. The authorisation is valid
for 18 months, and it annuls the authorisation given by the
Annual General Meeting to the Board of Directors on 8 April
2021.
On 8 April 2022, the Annual General Meeting also
authorised the Board of Directors to decide on the
acquisition of treasury shares subject to the following: The
Board of Directors may decide to acquire or pledge on non-
restricted equity a maximum of 5,000,000 treasury shares.
The acquisition may take place as one or several blocks of
shares. The consideration payable for the shares shall not
be more than the ultimate market price. In purchasing the
Company’s own shares derivative, share lending and other
contracts customary in the capital market may be concluded
pursuant to law and the applicable legal provisions. The
authorisation entitles the Board of Directors to pass a
resolution to purchase the shares by making an exception
to the purchase of shares relative to the current holdings
of the shareholders. The treasury shares may be used for
making acquisitions or implementing other arrangements
related to the Company’s business, to finance investments,
to improve the Company’s financial structure, to be used as
part of the incentive compensation plan, or for the purpose
of otherwise assigning or cancelling the shares. The Board of
Directors shall have the right to decide on all other matters
related to the acquisition of the Company’s own shares.
The authorisation is valid for 18 months, and it annuls the
respective authorisation given by the Annual General Meeting
to the Board of Directors on 8 April 2021.
3. Treasury shares, share
issues and cancellations
At the beginning of the financial period, Elisa held 7,147,772
treasury shares.
The Annual General Meeting held on 8 April 2022
authorised the Board of Directors to acquire and assign
treasury shares. The authorisation applies to a maximum of
5,000,000 treasury shares. On the basis of the authorisation,
Elisa has not acquired any treasury shares.
A total of 72,394 treasury shares were disposed during the
financial year.
At the end of the financial period, Elisa held 7,075,378
treasury shares.
The treasury shares held by Elisa Corporation do not have
any substantial impact on the distribution of holdings and votes
in the Company. They represent 4.23 per cent of all shares and
votes.
4. Management interests
The aggregate number of shares held by Elisa’s Board of
Directors and the CEO on 31 December 2022 was 124,417
shares and votes, which represented 0.07 per cent of all shares
and votes.
5. Share performance
The Elisa share closed at EUR 49.46 on 31 December 2022. The
highest quotation of the year was EUR 56.90 and the lowest
EUR 45.57. The average price was EUR 51.99. Information is
based on the share trades made on Nasdaq Helsinki stock
exchange.
At the end of the financial year, the market capitalisation of
Elisa’s total number of shares was EUR 8,276.4 million.
Shares and shareholders
5.3 Right-of-use assets
FINANCIAL STATEMENTS 2022
116
OSAKKEET JA
OSAKKEENOMISTAJAT
6. Quotation and trading
The Elisa share is quoted on the Main List of the Nasdaq Helsinki with the ticker ELISA. The aggregate volume of trading on the Nasdaq Helsinki between 1 January and 31 December 2022 was
71,229,057 shares for an aggregate price of EUR 3,703.2 million. The trading volume represented 42.6 per cent of the total number of shares at the end of the financial year.
7. Distribution of holding by shareholder groups at 31 December 2022
Number of shares
Proportion of all
shares, %
1 Private companies 3,272,026 1.96
2 Financial and insurance institutions 4,393,230 2.63
3 Public corporations 29,617,730 17.70
4 Non-profit organisations 5,198,591 3.11
5 Households 36,944,882 22.08
6 Foreign 357,449 0.21
7 Nominee registered 80,475,787 48.09
Elisa Group, treasury shares 7,075,378 4.23
167,335,073 100.00
8. Distribution of holding by amount at 31 December 2022
Size of holding
Number of
shareholders %
Number of
shares %
1–100 49,581 27.74 2,161,685 1.29
101–1 000 124,804 69.82 27,614,086 16.50
1 001–10 000 4,127 2.31 9,743,808 5.82
10 001–100 000 200 0.11 5,063,431 3.03
100 001–1 000 000 27 0.02 6,807,391 4.07
1 000 001– 7 0.00 28,255,787 16.89,
Nominee registered 80,475,787 48.09
178,746 100.00
Elisa Common Clearing account
(1
137,720 0.08
Elisa Corporation, treasury shares 7,075,378 4.23
Issued amount 167,335,073 100.00
1)
Shares on the Common Clearing account include shares that had not been transferred to the share owners’ book-entry accounts at the time of, or after, entering the shares into the Finnish book-entry
system.
FINANCIAL STATEMENTS 2022
117
OSAKKEET JA
OSAKKEENOMISTAJAT
9. Largest shareholders at 31 December 2022
Name
Number of
shares %
1 Solidium Oy 16,802,800 10.04
2 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 4,090,118 2.44
3 Keskinäinen Työeläkevakuutusyhtiö Varma 3,096,976 1.85
4 Keskinäinen Työeläkevakuutusyhtiö Elo 2,238,000 1.34
5 Helsingin kaupunki 1,124,690 0.67
6 Valtion Eläkerahasto 1,100,000 0.66
7 OP Finland Fund 769,906 0.46
8 Nordea Pro Finland Fund 502,619 0.30
9 Föreningen Konstsamfundet rf 500,000 0.30
10 Stiftelsen För Åbo Akademi Sr 403,223 0.24
11 Keva 398,479 0.24
12 Sijoitusrahasto Seligson & Co 371,954 0.22
13 Juselius Sigrid Stiftelse 348,800 0.21
14 Nordea Finnish Stars Fund 321,610 0.19
15 Samfundet Folkhälsan i Svenska Finland R F 315,263 0.19
16 Op-Henkivakuutus Oy 289,825 0.17
17 Sijoitusrahasto Evli Suomi Select 281,024 0.17
18 Vantaan Kaupunki 258,738 0.15
19 Suomen Kulttuurirahasto Sr 224,356 0.13
20 Fjarde Ap-Fonden 188,202 0.11
33,626,583 20.10
Elisa Corporation, treasury shares 7,075,378 4.23
Nominee registered
1)
80,475,787 48.09
Shareholders not specified above 46,157,325 27.58
167,335,073 100.00
1)
On 27 February 2017, BlackRock, Inc gave a notice in accordance with Chapter 9, Section 5 of the Finnish Securities Market Act, that the direct share ownership of Elisa Corporation shares owned by BlackRock,
Inc. was 8,533,440 and by its funds 1,232,577 shares, totaling 9,766,017 shares, which was 5.84 per cent of Elisa Corporation’s entire stock.
FINANCIAL STATEMENTS 2022
118
OSAKKEET JA
OSAKKEENOMISTAJAT
Share trading volumes are based on the trades made on Nasdaq Helsinki.
Elisa share is also traded in alternative marketplaces.
11. Trading volume
Shares per month (million)
10. Daily price development
Closing price in EUR
1)
Rebalanced to Elisa share.
40
42
44
46
48
50
52
54
56
58
Elisa
OMX Helsinki 25 -indeksi
(1
Kurssikehitys päivittäin
Päätöskurssi, euroa
1/2022
2/2022
3/2022
4/2022
5/2022
6/2022
7/2022
8/2022
9/2022
10/2022
11/2022
12/2022
1)
Suhteutettuna Elisan osakekurssiin
0
2
4
6
8
10
Osakevaihto
milj. kpl/kk
1/2022
2/2022
3/2022
4/2022
5/2022
6/2022
7/2022
8/2022
9/2022
10/2022
11/2022
12/2022
6.0
5.1
8.6
6.8
6.5
6.4
5.4
5.1
6.0
5.2
5.6
4.4
FINANCIAL STATEMENTS 2022
119
SIGNATURES TO THE BOARD OF DIRECTORS’
REPORT AND FINANCIAL STATEMENTS
Helsinki, 26 January 2023
Anssi Vanjoki Clarisse Berggårdh Maher Chebbo
Chairman of the
Board of Directors
Kim Ignatius Katariina Kravi Pia Kåll
Topi Manner Eva-Lotta Sjöstedt Antti Vasara
Veli-Matti Mattila
President and CEO
According to the balance sheet of 31 December 2022, the
parent company’s equity is EUR 581,469,661.80, of which
distributable funds account for EUR 474,553,183.53.
The parent company’s profit for the period from 1 January
to 31 December 2022 was EUR 284,090,605.60.
Board’s proposal for profit distribution
The Board of Directors proposes to the General Meeting
of Shareholders that the distributable funds be used as
follows:
• a dividend of EUR 2.15 per share shall be paid for a total
of EUR 344,558,344.25
• no dividend shall be paid on shares in the parent
company’s possession
• EUR 129,994,839.28 shall be retained in shareholders’
equity.
5.4 Intangible assets
6. Inventories, trade and other receivables, trade and
other liabilities
FINANCIAL STATEMENTS 2022
120
To the Annual General Meeting
of Elisa Corporation
Report on the Audit of the
Financial Statements
Opinion
We have audited the financial statements of Elisa
Corporation (business identity code 0116510–6) for the
year ended 31 December 2022. The financial statements
comprise the consolidated balance sheet, income
statement, statement of comprehensive income, statement
of changes in equity, statement of cash flows and notes,
including a summary of significant accounting policies,
as well as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and cash flows in accordance with
International Financial Reporting Standards (IFRS) as
adopted by the EU
• the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of
the group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company
and group companies are in compliance with laws and
regulations applicable in Finland regarding these services,
and we have not provided any prohibited non-audit services
referred to in Article 5(1) of regulation (EU) 537/2014.
The non-audit services that we have provided have
been disclosed in note 2.5 to the consolidated financial
statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our application
of materiality. The materiality is determined based on
our professional judgement and is used to determine the
nature, timing and extent of our audit procedures and
to evaluate the effect of identified misstatements on the
financial statements as a whole. The level of materiality
we set is based on our assessment of the magnitude of
misstatements that, individually or in aggregate, could
reasonably be expected to have influence on the economic
decisions of the users of the financial statements. We
have also taken into account misstatements and/or
possible misstatements that in our opinion are material for
qualitative reasons for the users of the financial statements.
Auditor’s Report
6.1 Inventories
FINANCIAL STATEMENTS 2022
121
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The significant risks of material
misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of whether there was evidence of management bias that represented a risk of
material misstatement due to fraud.
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Valuation of goodwill, € 1 157.3 million
(Consolidated accounting principles 1.2 and note 5.4)
• The amount of goodwill in the consolidated statement of financial position is significant
due to the acquisitions carried out in the previous years. The amount of goodwill equals
approximately to the consolidated equity.
• Goodwill is tested for impairment annually and the group prepares impairment tests for
the financial statements or when needed on a discounted cash flow basis with sensitivity
analyses.
• Estimating future cash flows underlying the impairment tests involves a significant amount
of management judgment, particularly in respect of growth in net sales, profitability and
discount rates.
• Due to management judgments about the estimates used in the impairment tests, as well
as the significant carrying amount involved, impairment of goodwill is considered a key
audit matter.
• We assessed critically those management judgments and the assumptions made, which
were used to prepare the cash flow projections for the coming years. In addition, we
compared previous years’ estimates to the actual amounts to be able to evaluate the
reliability of the estimating methods applied.
• We used KPMG valuation specialists when considering the appropriateness of the discount
rate used and the technical correctness of the calculations, as well as comparing the
assumptions used to market and industry-specific information.
• In addition, we assessed the adequacy of the sensitivity analyses and the appropriate
presentation of the notes related to impairment tests in the consolidated financial
statements.
FINANCIAL STATEMENTS 2022
122
Revenue recognition, € 2 129.5 million
(Consolidated accounting principles 1.2 and note 2.3)
• Revenues are recognized once the service has been rendered to the customer or once the
significant risks and rewards related to the ownership of the goods have been transferred
to the buyer.
• The IT system environment related to billing transactions is complex and the volume of
billing data is large containing wide variety of different products.
• Due to large volumes of data, revenue recognition involves the risk of revenue being
recognized in an incorrect period as well as the risk that all transactions are not recorded as
complete.
• Revenue recognition accrual is partially based on estimates from the management’s past
experience.
• We evaluated the sales-related IT control environment and the key controls in the billing
process over the completeness and accuracy of revenue.
• The majority of the group’s billing data is processed in a single IT system. We evaluated
the reliability of the associated IT control environment by assessing, among others, the
processes related to the user authorization management and back-up and recoveries, as
well as by testing the key application controls over the billing process.
• We also evaluated the group’s internal control procedures over the control environment in
the billing process, as well as assessed the group’s monthly revenue monitoring procedures
at business unit level.
• In addition to control testing, we performed substantive procedures to sales accruals to
assess the completeness and the accuracy of the recognized revenues.
Capital expenditures
(Consolidated accounting principles 1.2 and note 5)
• The group invests heavily especially in its own telecommunication network and IT
environments as well as new technology to remain competitive.
• The group’s capital expenditures (investments) amount to € 289.7 million in 2022, and
therefore capital expenditures comprise a significant part of the consolidated statement of
financial position
• We observed the group’s investment budget for the year 2022 and followed up
developments quarterly.
• We evaluated the group’s internal control environment. We also tested the controls over
the approval of investment projects; over the authorization process when placing individual
orders under an investment project; over the associated approval process when approving
purchase invoices; and over recording transactions in the asset register (for property, plant
and equipment and intangible assets).
• Our substantive procedures focused on assessing the appropriateness of the accounting
treatment in respect of the most significant investment projects. In addition, we tested
whether the assets under construction met the capitalization requirements and assessed
whether they were disclosed appropriately in the financial statements.
FINANCIAL STATEMENTS 2022
123
Responsibilities of the Board of
Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with International Financial Reporting Standards (IFRS)
as adopted by the EU, and of financial statements that
give a true and fair view in accordance with the laws
and regulations governing the preparation of financial
statements in Finland and comply with statutory
requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as
they determine is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of
Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to
continue as going concern, disclosing, as applicable, matters
relating to going concern and using the going concern basis
of accounting. The financial statements are prepared using
the going concern basis of accounting unless there is an
intention to liquidate the parent company or the group or
cease operations, or there is no realistic alternative but to
do so.
Auditor’s Responsibilities for the
Audit of Financial Statements
Our objectives are to obtain reasonable assurance on
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant
doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions
may cause the parent company or the group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures,
and whether the financial statements represent the
underlying transactions and events so that the financial
statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the group to express an opinion on the
consolidated financial statements. We are responsible for
the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
FINANCIAL STATEMENTS 2022
124
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual
General Meeting on 31 March 2004, and our appointment
represents a total period of uninterrupted engagement
of 19 years. The current auditor in charge, Toni Aaltonen,
Authorised Public Accountant, KHT, was elected on 6 April
2017.
Other Information
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of Directors
and the information included in the Annual Report, but
does not include the financial statements and our auditor’s
report thereon. We have obtained the report of the Board
of Directors prior to the date of this auditor’s report, and
the Annual Report is expected to be made available to us
after that date. Our opinion on the financial statements
does not cover the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information identified
above and, in doing so, consider whether the other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. With respect
to the report of the Board of Directors, our responsibility
also includes considering whether the report of the Board
of Directors has been prepared in accordance with the
applicable laws and regulations.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the financial
statements and the report of the Board of Directors has
been prepared in accordance with the applicable laws and
regulations.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki, 26 January 2023
KPMG Oy Ab
Toni Aaltonen
Authorised Public Accountant, KHT
FINANCIAL STATEMENTS 2022
125
To the Board of Directors
of Elisa Corporation
We have undertaken a reasonable assurance
engagement in respect of whether the consolidated
financial statements for the year ended 31 December
2022 included in the digital financial statements
743700TU2S3DXWGU7H32-2022-12-31 -en.zip of Elisa
Corporation (Business ID 0116510-6) have been marked up
with iXBRL markups in accordance with the requirements
of Article 4 of EU Delegated Regulation 2018/815 (ESEF
RTS).
The Responsibility of the Board of
Directors and Managing Director
The Board of Directors and Managing Director are
responsible for preparing the report of the Board
of Directors and financial statements (ESEF financial
statements) that comply with the requirements of ESEF
RTS. This responsibility includes:
• preparation of ESEF financial statements in XHTML
format in accordance with Article 3 of the ESEF RTS
• marking up the primary statements and the notes to
the consolidated financial statements, and the company
identification data included in the ESEF financial
statements with iXBRL tags in accordance with Article 4
of the ESEF RTS; and
• ensuring consistency between ESEF financial statements
and audited financial statements.
The Board of Directors and the Managing Director are
also responsible for such internal control as they deem
necessary to prepare the ESEF financial statements in
accordance with the requirements of the ESEF RTS.
Auditor’s Independence and
Quality Management
We are independent of the company in accordance with the
ethical requirements applicable in Finland, which apply to
the engagement we have performed, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements.
The auditor applies International Standard on Quality
Management ISQM 1, which requires the firm to design,
implement and operate a system of quality management
including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable
legal and regulations requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsibility
is to express an opinion on whether the marking up of
the consolidated financial statements included in the ESEF
financial statements comply in all material respects with
the Article 4 of the ESEF RTS. We conducted our reasonable
assurance engagement in accordance with International
Standard on Assurance Engagements 3000.
The engagement involves procedures to obtain evidence
whether;
• the primary statements of the consolidated financial
statements included in the ESEF financial statements are,
in all material respects, marked up with iXBRL tags in
accordance with Article 4 of the ESEF RTS, and;
• whether the notes to the consolidated financial statements
and the company identification data included in the ESEF
financial statements data, have been marked up, in all
material respects, with iXBRL tags in accordance with Article
4 of the ESEF RTS; and
• whether the ESEF financial statements and the audited
financial statements are consistent with each other.
The nature, timing and the extent of procedures
selected depend on practitioner’s judgement. This includes
the assessment of the risks of material departures from the
requirements set out in the ESEF RTS, whether due to fraud
or error.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the primary statements of the consolidated
financial statements, the notes to the consolidated financial
statements and the company identification data included
in the ESEF financial statements of Elisa Corporation
identified as 743700TU2S3DXWGU7H32-2022-12-31 -en.zip
for the year ended 31 December 2022 are, in all material
respects, marked up in compliance with the ESEF Regulatory
Technical Standard.
Our audit opinion on the audit of the consolidated
financial statements of Elisa Corporation for the year ended
31 December 2022 is set out in our Auditor’s Report dated
26 January 2023. In this report, we do not express any audit
opinion or other assurance conclusion on the consolidated
financial statements.
Helsinki 13 March 2023
KPMG OY AB
Toni Aaltonen
Authorised Public Accountant, KHT
Independent Auditor’s Reasonable Assurance Report
on Elisa Corporation’s ESEF Financial Statements
6.2 Trade and other receivables