Elisa - Company Announcement

Alternative performance measures (APMs) in Elisa's financial reporting

ELISA STOCK EXCHANGE RELEASE 29 JUNE 2016 12:15 PM

New ESMA (European Securities and Markets Authority) guidelines on Alternative
Performance Measures (Alternative performance measure (APM) = financial measure
other than financial measure defined or specified in IFRSs) are effective as of
3 July 2016. 

Alternative performance measures i.e. performance measures not based on
financial statements standards provide meaningful supplemental information by
excluding items that may not be indicative of the operating result or cash
flows of Elisa. Alternative performance measures enhance comparability from
period to period and are frequently used by analysts, investors and other
parties. APMs should not be considered as a substitute for measures of
performance in accordance with the IFRS. 

From Q3 2016, Elisa replaces previously used performance measures "excluding
extraordinary items" with "Comparable". 

Elisa’s alternative performance measures (the definitions or calculation
methods of these measures remain unchanged): 

EBITDA = Operating profit + depreciations

Comparable EBITDA = Operating profit + depreciations - items affecting
comparability 

Comparable EBIT = Operating 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 issues 

Cash flow after investments = “Cash flow before financing activities” in
Statement of Cash Flows = Net cash flow from operating activities – Net cash
used in investing activities 

Comparable cash flow after investments = “Cash flow before financing
activities” in Statement of Cash Flows  = Net cash flow from operating
activities – Net cash used in investing activities – items affecting
comparability 

                                                                               
    Profit before taxes + interest and other financial expenses 
                                                                               
    –  items affecting comparability 

Comparable return on investment (ROI), % =
-------------------------------------------------------------------x 100 

                                                                               
   Total equity + interest bearing liabilities (on average during the year) 


                                                                          
Profit for the period - items affecting comparability 

Comparable return on equity (ROE), % =
------------------------------------------------------------------------- x 100 

                                                                          Total
shareholders' equity (on average during the year) 

Net debt = Interest-bearing liabilities – Cash and cash equivalents and
financial assets at fair value through profit or loss 

                                  Interest-bearing liabilities
                                  – Cash and cash equivalents and financial
assets at fair value through profit or loss 

Gearing ratio, % =
----------------------------------------------------------------------- x 100 

                                Total shareholders’ equity

                                Total shareholders’ equity

Equity ratio, % =
------------------------------------------------------------------- x 100 

                               Balance sheet total – advance payments received

Items affecting comparability:

Certain non-operational or non-cash valuation transactions with significant
income statement impact are considered as items affecting comparability. These
non-recurring items could arise for example from: 

  -- asset impairments
  -- restructuring measures
  -- reorganisation measures
  -- administration fees or redundancy payments omitted permanently from the
     cost structure
  -- asset sales or disposals
  -- changes in legislation, compensations for damages or legal proceedings.

In addition to above described APMs, Elisa reports other Alternative
Performance Measures that are not defined under IFRS. These APMs can be found
in Elisa’s Annual Reports. The definitions and names of these measures remain
unchanged. 



ELISA CORPORATION

Vesa Sahivirta
IR Director
tel. +358 10 262 3036

Distribution:

Nasdaq Helsinki
Principal media
www.elisa.com