Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (November 2012)
12 slides from Elisa Oyj Class A's investor day presentation, Nov 13, 2012
Slide 1: Financial overview
Financial overview Jari Kinnunen CFO
Slide 2: Content
Content 1 Strategy execution - financial performance 2 Capital management 3 CFO priorities 2
Slide 3: Revenue growth driven by mobile and New services…
Strategy execution - financial performance Revenue growth driven by mobile and New services… Domestic revenue growth 1H11 vs. 1H12 -12% -10% -8% -6% -4% -2% 0% 2% Elisa Mobile service revenue, EURm* 2.6% Tele2 595 Telenor Vodafone 577 Swisscom 565 TDC TeliaSonera Belgacom 2010 2011 LTM Mobistar BT G
Slide 4: …and earnings improving via lower depreciations and financial costs
Strategy execution - financial performance …and earnings improving via lower depreciations and financial costs Depreciations, EURm • More efficient capital employed 217 -2.5% • E.g. CRM and billing system fully 211 depreciated 206 • Lower interest rate level 2010 2011 LTM • Efficient debt management
Slide 5: CAPEX guidance unchanged...
Capital management CAPEX guidance unchanged... CAPEX development, EURm • Mid-term CAPEX-to-sales target max 12% maintained 202 183 190 • LTE investments gradually over several years • Fiber where commercially viable 2010 2011 LTM • No investment peak for growing smartphone data expected CAPEX breakd
Slide 6: ...with good frequency capacity
Capital management ...with good frequency capacity • Capacity for data growth available MHz to population density (km2) ratio Finland 36 • Auction for 800 MHz Denmark 4 • License for 20 years, payment in France 4 5 annual installments Germany 3 UK 2 • 700 MHz expected to be available in 2017 Mobile
Slide 7: M&A policy continues to be strict…
Capital management M&A policy continues to be strict… Focus in core Value creating acquisition criteria Disciplined markets • Supports strategy track record • Financially accretive • Distribution intact or improved • Enhancing service offering • Complements own business development 7
Slide 8: …and efficiency of finance management improves
Capital management …and efficiency of finance management improves • Average interest rate ~2.7% Debt maturities • Multiple financing sources used and available 130 170 10 • Recent activity to decrease 300 162 interest and extent maturities 75 10 130 10 60 • Debt issue EUR 300m 7y, 2.25% 2012 2013 20
Slide 9: Elisa's performance leads to best-in-class shareholder remuneration
Capital management Elisa’s performance leads to best-in-class shareholder remuneration 302% • Track record over several years of strong profit distribution 0,52 149% 0,26 126% 135% 110% 101% • Upgraded dividend policy 77% 88% 2,50 39% 0,48 1,80 1,42 1,30 1,30 • pay-out ratio from 40-60% to 80- 0,07
Slide 10: CFO priorities
CFO priorities OPEX and CAPEX efficiency Improving efficiency of capital employed Efficient finance management
Slide 11: Thank you!
Thank you! OSA elisa
Slide 12: 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