Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (November 2012)
18 slides from Elisa Oyj Class A's investor day presentation, Nov 13, 2012
Slide 1: Consumer customers business
Consumer customers business Asko Känsälä Executive Vice President
Slide 2: Content
Content 1 Strategy 2 Financial performance 3 Operational performance 4 Competitive market dynamics 5 New services opportunity 6 Management priorities 2
Slide 3: We are continuing to execute our strategy…
Strategy We are continuing to execute our strategy… Telecom services New services Rational subscriptions Net-based service with world-class efficiency experiences 3
Slide 4: …transforming our consumer business…
Financial performance …transforming our consumer business… Revenues EURm +57% 715 685 New services New services +2% Telecom Telecom services services 9M11 9M12 4
Slide 5: …with mid-single digit top-line growth…
Financial performance …with mid-single digit top-line growth… Revenues EURm Year-on-year change 2010 +4% +7% 2011 2012 +5% +4% +3% +5% +4% 1Q 2Q 3Q 4Q 5
Slide 6: …and scalability in operations
Financial performance …and scalability in operations 9M11 versus 9M12 EBITDA EUR 231m 4,5 % EBITDA 32,2% 0,0 % margin CAPEX EUR 84m 2,4 % CAPEX 11,8% -0,2 % to sales Operating free EUR 146m 5,7 % cash flow Operating free cash 20,4% 0,3 % flow margin 6
Slide 7: Performing on par with the market …
Operational performance Performing on par with the market … Subscriptions change yoy in Finland 12 % 10 % Mobile Elisa 8% 6% Fixed broadband Elisa 4% Mobile market 2% 0% -2 % Fixed broadband market -4 % -6 % 1H08 2H08 1H09 2H09 2H10 2H10 1H11 2H11 1H12 Source: FICORA, company information, Elisa esti
Slide 8: …tiered mobile broadband pricing yielding results…
Operational performance …tiered mobile broadband pricing yielding results… Speed -based mobile data pricing Data revenues Voice revenues Price per Maximum month speed Technology Availability 39.80€ 100Mbit/s 4G (DC<E) Dongles and tablets 19.80€ 50Mbit/s 4G (DC<E) Phones, dongles and tablets 13.9
Slide 9: …continued push for operational efficiency…
Operational performance …continued push for operational efficiency… OPEX / subscription -7% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 9
Slide 10: …with further potential for improvement…
Operational performance …with further potential for improvement… Focus area – Number of IT systems Focus area – Customer service contacts as a proportion of user base 3Q10 2Q11 3Q12 4Q10 3Q11 1Q10 1Q12 2Q10 1Q11 4Q11 2Q12 2010 2011 2012 Focus area – Sales channel efficiency (Mobile SAC) Focus area –
Slide 11: …and customer satisfaction and loyalty as drivers
Operational performance …and customer satisfaction and loyalty as drivers Mobile churn development Device gross margin development Sonera DNA Elisa 3Q12 3Q12 1Q12 1Q12 2Q11 2Q11 2Q10 4Q11 2Q10 4Q11 4Q10 4Q10 3Q11 3Q11 3Q10 2Q12 3Q10 2Q12 1Q11 1Q11 1Q10 1Q10 Source: Company information, Elisa estimat
Slide 12: Adjacent new services offer attractive growth…
New services opportunity Adjacent new services offer attractive growth… New services market opportunities in Finland Entertaining Learning and Managing daily understanding routines ca. EUR 2.5bn ca. EUR 1.5bn ca. EUR 1.0bn • Enjoying • Satisfying curiosity • Taking care of loved • Practising hobbies
Slide 13: …where we are already achieving encouraging results…
New services opportunity …where we are already achieving encouraging results… New services user base (thousands) CAGR 60% 161 120 62 3Q10 3Q11 3Q12 13
Slide 14: …with additional services just launched…
New services opportunity …with additional services just launched… 14
Slide 15: …reinforcing our total business competitiveness…
New services opportunity …reinforcing our total business competitiveness… There are clear consumer needs Uplift of wallet share - demonstrated by the uptake of our differentiated offering Increasing customer loyalty We have concrete proof-points of Gaining market share being able to moneti
Slide 16: Management key priorities
Strategic and tactical priorities Management key priorities Telecom services New services • Keeping market share and • Leveraging market position stimulating demand for data • Extending services offering • Striving for world-class efficiency 16
Slide 17: Thank you! Q&A
Thank you! Q&A
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