Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (February 2010)
15 slides from Elisa Oyj Class A's investor day presentation, Feb 15, 2010
Slide 1: Elisa Consumer Business
Elisa Consumer Business Asko Känsälä Executive Vice President
Slide 2: Contents
Contents 1. Financial performance 2. Operational performance 3. Competitive market dynamics 4. On-line services opportunity 5. Strategic and operational priorities 2 15/02/2010
Slide 3: On the threshold of top-line growth…
Financial performance On the threshold of top-line growth… Revenue (EURm) and change yoy 2008 2009 230 225 -2% 220 +0% 215 210 -4% 205 -9% 200 195 190 185 1Q 2Q 3Q 4Q 3 15/02/2010
Slide 4: … with yoy improving margins and operative cash flow
Financial performance … with yoy improving margins and operative cash flow EBITDA 6.2% EBITDA margin 3.2%-units CAPEX -9.6% CAPEX-to-sales -0.7%-units Operating Free Cash Flow 15.9% Operating Free Cash Flow margin 3.9%-units 4 15/02/2010
Slide 5: Subscription volume growth outpacing ARPU decline…
Operational performance Subscription volume growth outpacing ARPU decline… Mobile subscriptions 2008 2009 Change Change % Total number of subscriptions 2,257,500 2,601,600 344,100 15% Subscriptions in Finland 1,979,500 2,308,800 329,300 17% Subscriptions in Estonia 278,000 292,800 14,800 5% Average
Slide 6: …with OPEX per subscription decreasing
Operational performance …with OPEX per subscription decreasing Change yoy FY09 vs FY08 Sales & marketing ~ 0% Customer Service ~ -35% Interconnection ~ -15% Network & IT ~ -15% Other ~ -15% Total OPEX/sub ~ -15% NOTE: OPEX for subscription business; excludes equipment purchases, which would further
Slide 7: …and with significant potential for further improvement
Operational performance …and with significant potential for further improvement Focus area How to improve Impact on CRM and Consolidate into fewer Customer Service, IT billing systems platforms Self-service and Develop capabilities and Customer Service, IT paperless billing enhance usage Optimize Sa
Slide 8: Performing at-par in the subscriptions market…
Competitive market dynamics Performing at-par in the subscriptions market… 30 % Elisa Consumer Business versus consumer market Elisa Market Elisa Market annualized subscription change Mobile Mobile Broadband Broadband 25 % 20 % 15 % 10 % 5% 0% -5 % -10 % -15 % 1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 2Q/09 3Q/
Slide 9: …with an exciting opportunity in online services
Competitive market dynamics …with an exciting opportunity in online services Learning and Enjoyment Understanding ~€2bn ~€1bn Social Everyday Interactions Routines ~€1bn ~€2bn 9 15/02/2010
Slide 10: Feel the experience
Feel the experience Elisa Viihde IPTV service combines the best qualities of digital TV and superfast broadband. 10 15/02/2010
Slide 11: … enriching the Elisa Viihde IPTV service
Online services opportunity … enriching the Elisa Viihde IPTV service Elisa branded video-on-demand store User group Regional discussion forum expansion in Finland Viihde Commercial WarnerFilm first in launch Europe and First ever HD broadcasts WarnerTV first in Finland IPTV service beta launch • Fi
Slide 12: Several services about to enter the market
Online services opportunity Several services about to enter the market 12 15/02/2010
Slide 13: Key management priorities going forward
Strategic and operational priorities Key management priorities going forward Subscriptions Online services • Keeping market share and • Leveraging market position stimulating demand • Striving for world-class • Extending services offering efficiency 13 15/02/2010
Slide 14: Thank you and Q&A
Consumer Customers Thank you and Q&A
Slide 15: Forward looking statements
Forward looking statements Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and