Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (February 2010)
14 slides from Elisa Oyj Class A's investor day presentation, Feb 15, 2010
Slide 1: Financial Overview
Financial Overview Jari Kinnunen CFO
Slide 2: Contents
Contents 1. Strategy execution 2. Debt arrangements 3. Distribution 4. Regulation 5. New segment reporting 2 15/02/2010
Slide 3: Cash generation has been strong …
Strategy execution - cash flow Cash generation has been strong … • Continuing focus on cash flow generation – CAPEX adjustable if needed – CAPEX cut to half in Estonia in 2009 • Predictable cash flow – Operations in developed market – No emerging market exposure – Cash flow fully consolidated 3 15/0
Slide 4: …resulting in a healthy balance sheet structure
Strategy execution – balance sheet …resulting in a healthy balance sheet structure Healthy balance sheet Capital employed decreased • Equity ratio Q4/09 46% (Target >35%) by EUR 74m in 2009 • Net debt /EBITDA Q4/09 1.5 (Target • NWC decreased by EUR 37m 1.5-2x) in 2009 • Goodwill no issue Balance sh
Slide 5: Improved CAPEX efficiency ...
Strategy execution – CAPEX Improved CAPEX efficiency ... • Strict CAPEX control – Target 10-12% of revenue • Business driven rational CAPEX – CAPEX programs according to demand – Clear investment policies • Network CAPEX efficiency 2009 CAPEX – Procurement and equipment prices Breakdown – Network op
Slide 6: …and no change in opportunistic M&A approach
Strategy execution - M&A …and no change in opportunistic M&A approach • Only if clear value creation opportunity • Bolt-on acquisitions – Enhancing product portfolio and service offering – Alternative to own business development • Acquisition criteria – Support strategic goals – Financially accretiv
Slide 7: Solid funding position and healthy debt maturity
Debt arrangements Solid funding position and healthy debt maturity As 31 December 2009: (EURm) • Issued bonds EUR 600m • Bank Loans EUR 80m • Undrawn RCF’s EUR 300m • CP EUR 74m issued • Credit ratings – Standard & Poor’s BBB (stable) – Moody’s Baa2 (stable) • Commitment to investment grade rating •
Slide 8: Allows best-in-class distribution
Distribution Allows best-in-class distribution • Top dividend yields in the sector (EURm) – 8.1% in 2009, sector average ~6% • Ordinary distribution 40 – 60% of annual profit – Additional distribution based on – Financial position – Future financial needs – Financial targets • Net debt / EBITDA targ
Slide 9: No major regulative issues in the mid-term
Regulation No major regulative issues in the mid-term • Mobile Termination Rates 1 Jan 1 Jan 1 Jan 1 Jan 1 Dec 1 Dec Operator 2006 2007 2008 2009 2009 2010 – Symmetric MTR since 1 Dec 2009 Elisa 8.4 7.0 5.1 4.9 4.9 4.4 – Prices agreed until 1 Dec 2011 Telia- 6.8 6.6 5.1 4.9 4.9 4.4 • Licenses Sonera
Slide 10: Enhanced segment KPI reporting…
New segment reporting Enhanced segment KPI reporting… • Breakdown of subscriptions – Consumer customers: Finland and Estonia – Corporate customers: Finland and Estonia • Mobile ARPU breakdown – Consumer customers: Finland – Corporate customers: Finland • Group level KPIs – Churn and usage (Finland)
Slide 11: …leading to improved transparency
New segment reporting …leading to improved transparency Elisa Corporation EURm 1Q/08 2Q/08 3Q/08 4Q/08 2008 1Q/09 2Q/09 3Q/09 4Q/09 2009 Mobile KPIs Total number of subscriptions 2,695,000 2,772,600 2,830,100 2,879,700 2,879,700 3,025,700 3,152,500 3,217,700 3,329,000 3,329,000 Consumer Customer sub
Slide 12: Primary focus on cash flow generation
Priorities Primary focus on cash flow generation • Strong market position • Productivity improvement measures Solid Cash Competitive Flow profit distribution • Strict CAPEX control • Increasing efficiency of capital employed 12 15/02/2010
Slide 13: Thank you and Q&A
Financial Overview Thank you and Q&A
Slide 14: 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