Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (October 2014)
16 slides from Elisa Oyj Class A's investor day presentation, Oct 22, 2014
Slide 1: Financial overview
Financial overview Jari Kinnunen CFO
Slide 2: Content
Content 1 Financial performance 2 Capital management 3 CFO priorities 2 22 October 2014 Elisa CMD 2014 | Financial overview
Slide 3: Mobile service revenue important growth driver…
Financial performance Mobile service revenue important growth driver… • Continuous increase Mobile service revenue, EURm and ARPU, EUR in value capture 175 20 170 CAGR • ARPU diluted 2% • SIM penetration >180% 165 • High number of data SIM’s 15 160 155 10 150 145 140 5 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13
Slide 4: …thus improved transparency with new KPI reporting
Financial performance …thus improved transparency with new KPI reporting Mobile KPIs 3Q14 OLD 3Q14 NEW Mobile revenue Mobile revenue, €m 240 240.0 1 • Service revenue of which Service revenue - 169.2 • Equipment sales of which equipment sales - 40.1 of which interconnection and visitor roaming - 3
Slide 5: EBITDA margin on track to target…
Financial performance EBITDA margin on track to target… • Macro development worse than EBITDA and margin increasing1) 32% 33% 34% estimated last CMD CAGR • Latest GDP estimate for 2014 -7% lower 3% than estimated in 2012 508 529 501 • Cost control delivering results 2012 2013 LTM 1) excluding one-of
Slide 6: …and EPS and cash flow grow even more
Financial performance …and EPS and cash flow grow even more • CAPEX EPS, EUR 1) 1,47 • Target 12% of sales CAGR • Demand-based 4% • Stable depreciations 1,35 1,33 • Low financial expenses 2012 2013 LTM 1) excluding one-offs • Excellent financing conditions • Taxes Cash Flow, EURm 2) • Finnish corpor
Slide 7: Efficient use of CAPEX - best in class ROCE…
Capital management Efficient use of CAPEX - best in class ROCE… • Mid-term CAPEX / sales target ROCE, %2) max 12% reiterated • Demand based timing and 18% 16% 17% allocation 8%3) 2012 2013 LTM 3) European telecom average 2014, Citi Research 14 Oct 2014 FTTx coverage1) LTE coverage/pop CAPEX EURm, CA
Slide 8: …also supported by efficient frequency capacity
Capital management …also supported by efficient frequency capacity • Enables data growth Hz per subscription Elisa 47 • Network capacity management Sweden 1) 30 UK 1) 8 • Traffic management France 1) 6 Italy 1) 5 Germany 1) 4 • LTE coverage >90 per cent 1) Market leader in the country • Advantageous
Slide 9: Disciplined M&A policy… Focus in core markets
Capital management Disciplined M&A policy… Focus in Value creating Disciplined core markets acquisition track record • Domestic telecom criteria • Videra, Appelsiini, • Supports strategy PPO, Sulake • Bolt-on in new services • Financially accretive • Anvia as an • Distribution intact associated comp
Slide 10: …and excellent funding efficiency…
Capital management …and excellent funding efficiency… Bonds RCF in use Bank loans Undrawn RCF Bonds 600 Multiple 130 Bank loans 210 funding Commercial paper 200 sources 120 300 300 50 RCF in use 50 9 129 9 59 2015 2016 2017 2018 2019 2020 2021 Average interest1) Weighted average maturity, years Fixe
Slide 11: ...with solid capital structure…
Capital management ...with solid capital structure… • Unchanged mid-term targets Net Debt / EBITDA 2,1 2,1 • Net Debt / EBITDA 1.5-2× 2,0 2,0 2,0 2x 1,8 • Equity ratio >35% 1,7 1,7 1,7 1.5x • Solid credit ratings Moody’s Baa2 stable outlook 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 S&P BBB positi
Slide 12: ... leads to best-in-class shareholder remuneration
Capital management ... leads to best-in-class shareholder remuneration • Excellent track record 0,26 • Distribution policy reiterated • Payout ratio 80-100% 1,80 1,42 • Yield 7-9% in last seven years 149% 1,30 1,30 1,30 1,30 135% 1,00 126% • Commitment to competitive 104% 101% 98% remuneration conti
Slide 13: Elisa – unique telecom operator
Elisa – unique telecom operator • Network operations only in Total shareholder return 44% 1 January 2012 developed markets 28 26 • Market leader in Finland, stable market shares 24 • Price level among the lowest in Europe 22 • Strong focus on new services 20 • Network independent business expansio
Slide 14: CFO priorities
CFO priorities Build value on data CAPEX efficiency | Return on capital employed growth Accelerate new services businesses Bolt-on acquisitions | Growth and profitability improvement Improve performance with customer intimacy and operational excellence Productivity improvement | Efficient capital st
Slide 15: Forward looking statements
Forward looking statements Statements made in this document relating to the future, including future performance and other trend projections, are forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circum
Slide 16: Thank you
Thank you