Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (October 2014)
19 slides from Elisa Oyj Class A's investor day presentation, Oct 22, 2014
Slide 1: Consumer Customers Business
Consumer Customers Business Asko Känsälä Executive Vice President
Slide 2: Content
Content 1 Strategy 2 Telecom services performance 3 New services performance and opportunity 4 Management priorities
Slide 3: We are continuing to execute our strategy…
Strategy We are continuing to execute our strategy… ELISA NEW SERVICES Net-based service experiences ELISA SAUNALAHTI TELECOM SERVICES Rational subscriptions with world-class efficiency 3 22 October 2014 Elisa CMD 2014 | Consumer Customers Business
Slide 4: … with positive performance in top-line, EBITDA and cash generation growth…
Strategy … with positive performance in top-line, EBITDA and cash generation growth… Revenues, EURm EBITDA, EURm OpFCF, EURm CAGR -0.2% 221 962 949 959 325 202 307 304 193 CAGR CAGR +2.9% +6.9% 2012 2013 LTM 2012 2013 LTM 2012 2013 LTM Telecom services New services Devices, interconnection, visitor
Slide 5: …as our efficiency measures yield clear results
Strategy …as our efficiency measures yield clear results Customer care first call resolution rate Sales channel efficiency (number of sales per sales person) 2012 2013 LTM 2012 2013 LTM Online customer contacts as a proportion of Web shop conversion rate all contacts 2012 2013 LTM 3Q13 1Q14 3Q14 5 2
Slide 6: We see healthy growth in our telecom services revenues…
Telecom services performance We see healthy growth in our telecom services revenues… Consumer telecom revenue, EURm • Service revenues growth is driven by mobile service upgrades • Growth is offset by decrease in interconnection and fixed network CAGR services revenues +2.5% • Equipment sales vary d
Slide 7: …in a stabilising subscriptions market, where our focus turns to increasing our present wallet-share…
Telecom services performance …in a stabilising subscriptions market, where our focus turns to increasing our present wallet-share… Subscriptions market in Finland (in thousands) 9310 • Subscription growth ~0 in the Finnish market 1681 • Market shares stable 1H11 2H11 1H12 2H12 1H13 2H13 1H14 Mobile
Slide 8: …with further upside potential from additional services
Telecom services performance …with further upside potential from additional services 17.90 €/month 24.90 €/month 29.90 €/month 39.90 €/month Saunalahti Pilvilinna personal storage Saunalahti Turvapaketti information security 20 Gt 2,90 € / m 7.90 € / m 14.90 € / m 34.90 € / m 1 device 3 devices 6 de
Slide 9: We are securing EBITDA growth with our customer-focused efficiency measures…
Telecom services performance We are securing EBITDA growth with our customer- focused efficiency measures… EURm 100 40% 90 • EBITDA has 35% 80 grown steadily 30% despite 70 occasional price 25% competition 60 setbacks affecting 50 20% CAGR revenue 40 +2.9% 15% • Major contributors 30 have been 10% c
Slide 10: …as our customer loyalty actions continue driving churn down…
Telecom services performance …as our customer loyalty actions continue driving churn down… Mobile churn development in Finland 40% • Churn at a 30% reasonable level 20% despite occasional 10% price competition 0% • Customer 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 satisfaction Elisa Te
Slide 11: …and our cash generation is further strengthened by our rigorous CAPEX management
Telecom services performance …and our cash generation is further strengthened by our rigorous CAPEX management CAPEX, EURm OpFCF, EURm 35 13% 70 30% 30 60 25% 12% 25 50 20% 20 40 11% 15% 15 30 CAGR +6.9% 10% 10 CAGR 20 10% -4.3% 5% 5 10 0 9% 0 0% 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q12 3Q12 1Q13 3Q13 1Q1
Slide 12: Our new services performs solid double-digit revenue growth…
New services performance and opportunity Our new services performs solid double-digit revenue growth… Revenues, EURm CAGR +18.6% 2012 2013 LTM 12 22 October 2014 Elisa CMD 2014 | Consumer Customers Business
Slide 13: …with Elisa Viihde surpassed 200,000 customers…
New services performance and opportunity …with Elisa Viihde surpassed 200,000 customers… 13 22 October 2014 Elisa CMD 2014 | Consumer Customers Business
Slide 14: …and Elisa Viihde mobile application downloaded more than 450,000 times
New services performance and opportunity …and Elisa Viihde mobile application downloaded more than 450,000 times • 450,000 mobile application downloads so far • Available in all major mobile application ecosystems • Rating 3.7 on Google Play, 2.7 on iOS and 3.9 on WP 14 22 October 2014 Elisa CMD 201
Slide 15: Adjacent international new services opportunities offer interesting prospects…
New services performance and opportunity Adjacent international new services opportunities offer interesting prospects… Over Over 200 million 400 million outdoor sports enthusiasts globally teenagers in Spanish, English & Portuguese languages globally Source: US Census Bureau, CIA World Factbook, Eu
Slide 16: …with initial encouraging results
New services performance and opportunity …with initial encouraging results • 25 million video views per month • 400,000 Google+ followers • 100,000 YouTube subscribers • Strong publisher partner network covering e.g. USA Today, Daily Mail, Guardian • Integrated eCommerce solution We are the ultimate
Slide 17: Management key priorities
Management priorities Management key priorities Build value on data Stimulating demand for data | Enhancing value capture Accelerate new services businesses Leveraging market position | Extending new services offering Improve performance with customer intimacy and operational excellence Striving for
Slide 18: 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 19: Thank you
Thank you