Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (2021)
25 slides from Elisa Oyj Class A's investor day presentation, 2021
Slide 1: CMD2021
diss | CMD2021
Slide 2: Group overview
Group overview Veli-Matti Mattila CEO
Slide 3: Elisa's unique strategy generates sustainable profit and growth
Elisa’s unique strategy generates sustainable profit and growth 1 Performance update 2 Market overview 3 Sustainable profit and growth generation 4 Medium-term targets and CEO priorities
Slide 4: Elisa's unique strategy generates sustainable profit and growth
Performance update Elisa’s unique strategy generates sustainable profit and growth Value for customers Unique financial performance Engaged employees Positive impact on society 4
Slide 5: We have a strong track record of creating value for our stakeholders
Performance update We have a strong track record of creating value for our stakeholders… Value for customers Engaged employees Positive impact on society NPS Empowerment index (0-5) Carbon footprint, 000 tCO2 30 4.3 60 25 50 4.1 20 40 15 3.9 30 10 20 3.7 5 10 0 3.5 0 2014 2020 2014 2020 2014 2020 5
Slide 6: …with unique financial performance
Performance update …with unique financial performance Unique financial performance Best-in-class revenue growth Further improving profitability Growing EPS and dividend CAGR +1.7% CAGR +3.5% CAGR +2.4% 685 1,895 668 1,844 639 2.05 1,832 1.95 1.93 1.95 3) 1.85 1.75 36.2 % 36.2 % CAGR 0.0% 34.9 % (Pee
Slide 7: We are on track to meet four of our five medium-term targets
Performance update We are on track to meet four of our five medium-term targets Parameter Target by end of 2021 Revenue growth → Above industry1) average ⚫ EBITDA margin → Above 37% ⚫ CAPEX-to-sales → ≤12% ⚫ Capital structure Net debt / EBITDA → 1.5-2× ⚫ Equity ratio → >35% ⚫ Performance by 4Q2020 =
Slide 8: We operate in digitally advanced and attractive markets
Market overview We operate in digitally advanced and attractive markets… Finland is the EU’s most advanced digital society1) Finland has the highest mobile data usage3) • FIN 36.2 GB per capita per month • EU 8.0 GB per capita per month Finland #1 72 Estonia #7 60 Mobile broadband widely preferred •
Slide 9: …with sizeable domestic target markets
Market overview …with sizeable domestic target markets… Telecom Digital services Telecom services Entertaining IT video services services and solutions EUR 5.3bn EUR CAGR 2020-2023 EUR 1.3bn 550m 2% CAGR 2020- CAGR 2020- 2023 5% 2023 6% Telecom services (incl. devices) addressable market 2020, consu
Slide 10: …and additional opportunity in selected international markets
Market overview …and additional opportunity in selected international markets Digital services Telecom software Industrial software Visual communications EUR 2.2bn EUR 5.0bn EUR 1.9bn CAGR 2020- CAGR 2020- CAGR 2020- 2023 5-10% 2023 ~5% 2023 5-10% Addressable market: network analytics, probe systems
Slide 11: Elisa's unique strategy generates sustainable profit and growth
Sustainable profit and growth generation Elisa's unique strategy generates sustainable profit and growth A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 11
Slide 12: Driving sustainability is an important enabler for profit and growth
Sustainable profit and growth generation Driving sustainability is an important enabler for profit and growth Value creation Top-line Employee Risk Cost Investment growth productivity mitigation reduction optimisation Driver More desired choice for Continuous learning and Enhanced cybersecurity Driv
Slide 13: Customer demand for fast, reliable and high-quality connections continues to grow
Sustainable profit and growth generation Customer demand for fast, reliable and high-quality connections continues to grow Human impatience drives speed and Continued data traffic growth latency demands Mobile and fixed peak data traffic, Gbps • Real-time collaboration and videoconferencing • Applic
Slide 14: We are already creating value with our customers through 5G
Sustainable profit and growth generation We are already creating value with our customers through 5G… 5G customers are more satisfied 5G value capture Operators brand NPS Average billing increase in 5G upgrades 5G Non-5G 50 45 > EUR 3 40 35 30 25 43% 20 5G population Elisa Competitor A Competitor B
Slide 15: …and our value capture model continues to work
Sustainable profit and growth generation … and our value capture model continues to work Customers upgrade to faster mobile postpaid voice subscriptions in Finland 50% 2018 2019 2020 40% 30% 20% 10% 0% ≤21 Mbps (2G/3G) 50 Mbps (4G) 100-150 Mbps (4G) 200-300Mbps (4G) 300-1000 Mbps (5G) Current list p
Slide 16: Transformation to fast fixed broadband is well underway
Sustainable profit and growth generation Transformation to fast fixed broadband is well underway • Fixed broadband transforming rapidly Fixed broadband subscriptions from copper to mobile or fibre 86% • Traditional fixed voice approaching end of life • Growth potential – Upgrades to faster speeds –
Slide 17: We accelerate the growth of our digital services
Sustainable profit and growth generation We accelerate the growth of our digital services… Entertaining video services IT services and solutions EUR 149m EUR 115m • Most popular entertainment video service in Finland • Proven customer value from integrated IT+C • 15-20% EBITDA level • ~5% EBITDA lev
Slide 18: …with significant global opportunities
Sustainable profit and growth generation …with significant global opportunities International digital services EUR 81m1) Telecom • Domains selected through focused software strategic learning with internal start-ups • Building on over a decade of experience in managing vast, highly automated infrast
Slide 19: We have a unique way to continuously improve quality and efficiency
Sustainable profit and growth generation We have a unique way to continuously improve quality and efficiency Continuous improvement and learning through experimentation • Target-oriented development and innovation • Learning and problem solving through quick experimentation, e.g. with Kata and eElis
Slide 20: Use of automation and AI has delivered sustainable improvements in network operations
Sustainable profit and growth generation Use of automation and AI has delivered sustainable improvements in network operations… Efficiency through increased Customer-perceived quality Results automation improvement • Over 40× more data traffic in the mobile Daily automated telecom operation actions
Slide 21: …and continues to also offer significant further potential in service processes
Sustainable profit and growth generation … and continues to also offer significant further potential in service processes Back office automation grows Results Delivery, billing and payment transactions • 58% of back office transactions automated 20201) • 5.4 million back office tasks completed with
Slide 22: We have updated our medium-term targets
Medium-term targets and CEO priorities We have updated our medium-term targets Parameter Target by end of 2023 Revenue growth → 2020–2023 CAGR >2% EBITDA growth → 2020–2023 CAGR >3% CAPEX-to-sales → ≤12% Capital structure Net debt / EBITDA → 1.5-2× Equity ratio → >35% Policy Profit distribution → Pa
Slide 23: Elisa's unique strategy generates sustainable profit and growth
Medium-term targets and CEO priorities Elisa's unique strategy generates sustainable profit and growth A sustainable future through digitalisation Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 23
Slide 24: Thank you
elise CMD2021 THANK YOU.
Slide 25: many of which are outside of Elisa’s control.
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 circumstances that will occur in