Slide 1: Consumer Customers business
Consumer Customers business Asko Känsälä Executive Vice President, Deputy CEO
Slide 2: Elisa's unique strategy generates profit and growth
1 Performance update 2 Market environment 3 Profit and growth generation 4 Management priorities Elisa’s unique strategy generates profit and growth 2
Slide 3: Our customers increasingly recommend our services…
Performance update Our customers increasingly recommend our services… Consumer customer NPS in Finland, 2016–present 29.0 25.4 22.2 19.8 Elisa Competitor A Competitor B NPS = Net Promoter Score Sources: IRO Research, Elisa analysis 3
Slide 4: …fuelling mid-single-digit revenue and EBITDA growth
Performance update …fuelling mid-single-digit revenue and EBITDA growth Revenue, EURm EBITDA1), EURm EBITDA1): 420 140 CAGR +6.5% CAGR +8.4% 21 consecutive 360 120 +3% +5% +6% quarters +3% +9% -1% +8% +9% +18% +11% 300 +7% +13% 100 +7% +7% outperforming 240 80 the 180 60 corresponding 120 40 quarter
Slide 5: We have a solid position in the growing telecom market and further potential in video services
Market environment We have a solid position in the growing telecom market and further potential in entertaining video services Consumer telecom services market 2017 Entertaining video services market 2017 in Finland and Estonia in Finland and Estonia €2.9bn €1.2bn YoY growth +5% YoY growth +4% Sourc
Slide 6: Strategic priorities remain intact
Profit and growth generation Strategic priorities remain intact Increase mobile and fixed service revenues Grow digital service businesses Improve efficiency and quality 6
Slide 7: Our customers' strong demand for faster unlimited internet connectivity…
Profit and growth generation Our customers’ strong demand for faster unlimited internet connectivity… Mobile voice subscriptions Mobile broadband subscriptions Fixed broadband subscriptions ≥100 Mbps, Finland ≥100 Mbps, Finland ≥100 Mbps, Finland +81% +34% +11% +10% +22% +158% 3Q16 3Q17 3Q18 3Q16 3Q
Slide 8: …bringing more value to customers and to Elisa…
Profit and growth generation …bringing more value to customers and to Elisa… Mobile voice subscriptions Mobile broadband subscriptions Fixed broadband subscriptions Finland Finland Finland +55% +125% +134% +169% +100% +52% NPS Average billing, €/month NPS Average billing, €/month NPS Average billing
Slide 9: …materialises in mid-single-digit growth in our telecom services revenue...
Profit and growth generation …materialises in mid-single-digit growth in our telecom services revenue... Telecom services revenues, EURm 982 993 921 CAGR +3.8% 2016 2017 LTM Telecom services Devices, interconnection, visitor roaming 9
Slide 10: …and there is still further potential before moving towards 5G
Profit and growth generation …and there is still further potential before moving towards 5G Subscriptions in Finland Emerging 5G subscriptions 100 % 80 % 60 % 40 % 20 % 0% Mobile voice Mobile broadband Fixed broadband ≥100 Mbps <100 Mbps 10
Slide 11: Elisa Viihde Original Series
ELISA VIDE ORIGINAL SERIES
Slide 12: Our customers' growing interest in on-demand video content...
Profit and growth generation Our customers’ growing interest in on-demand video content... On-demand video views1) in our Paying users of our own streaming NPS of streaming video service, entertaining video service in Finland video service2) 2016–present CAGR +19.8% CAGR +41.4% 56.1 55.6 55.1 2016 2
Slide 13: …results in top-line growth in entertaining video services…
Profit and growth generation …results in top-line growth in entertaining video services… Entertaining video services revenues, EURm Entertaining video services EBITDA-%, 2016–present CAGR1) +26.6% 140 127 93 +7 pp Positive Negative 2016 2017 LTM 1) Organic CAGR 2016 – LTM +10.5% 13
Slide 14: …with further potential for growth
Profit and growth generation …with further potential for growth Entertaining video service potential in Finland and Estonia +116% +96% Elisa Entertaining video Elisa mobile and fixed Mobile and fixed services customers broadband customers broadband market 14
Slide 15: Elisa Viihde Original Series – MIPTV Coup de Coeur winner 2018
ee t r ELISA VIIHDE ORIGINAL SER B a - Oy Lael MIPTV COUP DE COEUR WINNER 2018
Slide 16: With expanding use of software robotics and…
Profit and growth generation With expanding use of software robotics and… Process automation rate in consumer Manual work in consumer billing and Billing and delivery contacts in customer business order handling processes consumer customer business CAGR -27% CAGR -7% +8 pp 1Q17 2Q17 3Q17 4Q17 1Q18 2
Slide 17: …artificial intelligence we enhance efficiency and quality…
Profit and growth generation …artificial intelligence we enhance efficiency and quality… Frontline using AI recommendation Accepted AI recommendations Customer effort score by customers 60× +9 +43 pp pp 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q
Slide 18: …as we continue to leverage online
Profit and growth generation …as we continue to leverage online 15 most used online stores by Finns 15 most valued online stores Transactions and conversion rate by Finns in our online shop Zalando 15% Varusteleka 8.9 Adlibris 14% Dermosil 8.9 CDON 13% Coco panda 8.8 Verkkokauppa(.com) 8% iHerb 9.0
Slide 19: Elisa's unique strategy generates profit and growth
Management priorities Elisa’s unique strategy generates profit and growth Elisa’s strategy Profit and growth generation Increase mobile and fixed service • Stimulating demand for speed and 5G revenues • Enhancing value capture • Leveraging market position Grow digital service businesses • Capturing
Slide 20: Thank you.
elise CMD2018 THANK YOU.
Slide 21: 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 circumstances that will occur in