Ericsson Nikola Tesla d.d. · ZSE:ERNT
Ericsson Nikola Tesla d.d — Ericsson Nikola Tesla — RCB Investors Conference (April 2007)
33 slides from Ericsson Nikola Tesla d.d's conference presentation, Apr 12, 2007
Slide 1: RCB Investors Conference
Ericsson Nikola Tesla RCB Investors Conference Zuers, April 12, 2007 Orhideja Gjenero Investor Relations Manager
Slide 2: Agenda
Ericsson Nikola Tesla Investors Conference Agenda Company overview Business environment Achievements 2006 Outlook 2007 Ericsson Nikola Tesla
Slide 3: An Information Communication Technology company
Ericsson Nikola Tesla An Information Communication Technology company Ranked at the top of Croatian economy for over five decades Five decades of cooperation with Ericsson and a decade of membership in the Ericsson Group Long-time presence at the markets of CEMA Ericsson Nikola Tesla
Slide 4: Our position in Croatia
Our position in Croatia The company of “knowledge” Driver of the cutting edge information and communications technologies Almost the whole national wireline network and half the wireless network in Croatia is based on Ericsson’s products, solutions and services Partnership with key operators
Slide 5: Our position in Ericsson
Our position in Ericsson Marketing & Sales network Regional center for total communications solutions Regional and global center for services Regional center for System Integration Strong research & development unit Mobile Data Solutions Global Expertise Center Driver of e-systems port
Slide 6: Business environment
Ericsson Nikola Tesla Business environment
Slide 7: Business environment
Business environment Mobile – Mobile market continues to grow, but very General soon saturation can happen on some markets – Evaluation to All- IP – Mobile Broadband should be major driver for – Expansion from ‘traditionally 3G rollout in the coming years strong areas’ towards solution, – Value
Slide 8: Fixed, Mobile and Internet penetration in our markets
Business environment Fixed, Mobile and Internet penetration (%) in our markets FIXED MOBILE INTERNET Croatia 42 101 35 Bosnia and Herzegovina 36 41 8 Montenegro 28 99 13 Russia 30 106 22 Belarus 36 63 30 Kazakhstan 20 51 10 Ericsson Nikola Tesla
Slide 9: Business Environment - Croatia
Business Environment - Croatia Fixed-voice license: currently 20 fixed licenses / 9 of them fulfilled conditions for commercial launch Consolidation trends in the fixed market segment showed up on the Croatian market (T-HT bought a 100% stake in Iskon) Fixed broadband, with new service offers,
Slide 10: Bosnia & Herzegovina and Montenegro
Business Environment Bosnia&Herzegovina and Montenegro BiH Montenegro Market partially deregulated 3 licenses for 2G/3G operators UMTS and WiMAX licensing (Telekom Srbije new operator) expected in Q3/Q4 2007 1 license for fixed operator 3 licenses for GSM operators 7 licenses for ISP 3
Slide 11: Export markets – CIS
Export markets – CIS CIS telecom market is showing very healthy growth. The most important market driver is the growth of mobile services even in relatively underdeveloped regions ETK main markets are Belarus, Kazakhstan and Russia Fixed, mobile and Internet market PSTN market showed rather slow d
Slide 12: Achievements 2006
Ericsson Nikola Tesla Achievements 2006
Slide 13: 2006 in brief
2006 in brief Stable operations continued, despite the competition and demanding customers A good year both in domestic and foreign markets, a number of strategic contracts and new customers KPI in compliance with plan or even exceeded Positioning as a strong R&D center and other expert cent
Slide 14: Three cornerstones of company operations
Three cornerstones of company operations 2006 Export Export to Ericsson markets 22% 48% Top markets Croatia Sweden Belarus Croatia 30% Bosnia and Herzegovina Kazakhstan 2002 2003 2004 2005 2006 Russia Ericsson 231 224 226 296 358 Export 870 866 944 852 794 Montenegro Croatia 313 314 38
Slide 15: Domestic market
Domestic market 30% Stronger position in domestic market Domestic sales 482,6 MHRK (+1,4%) 500 Collaboration continued and 400 new contracts signed with major Croatian operators 300 (VIPnet, T-HT and Tele2) 200 and numerous enterprise 100 systems customers 0 2002 2003 2004 2005 2006 Croatia 31
Slide 16: Domestic market - key customers/activities
Domestic market- key customers/activities VIPnet Strategic partnership in introducing new technologies By working closely with Ericsson Nikola Tesla, Vipnet is building its leading position in broadband Internet access and continues the 3G network evolution The cooperation on extending the fir
Slide 17: Domestic market – Enterprise systems
Domestic market – Enterprise systems Key customers: Ministry of Defense (MORH), Ministry of Interior (MUP), Health Ministry, Electric Power Industry (HEP), Financial Agency (FINA), Croatian Railways (HŽ), Oil Industry (INA) National integrated primary health care system (e-Health) finished and o
Slide 18: Export markets
Export markets 48% Export sales 793,7 MHRK Top markets BiH and Montenegro 233 MHRK (-14,7%) – Contracts for modernization and extension of mobile and fixed systems signed with operators BH Telecom, HT Mostar/ HT Mobilne komunikacije and Montenegro Other T-Com & T-Mobile Montenegro Russia 7% 4% Bel
Slide 19: Export to Ericsson
22% Export to Ericsson Services sales in internal Ericsson market show a considerable growth 357,8 MHRK (+20,7%) 400 Additional responsibilities: R&D - Integration-Verification (I&V) 350 services, Cello Packet Platform (CPP), 300 Development Unit Core Network 250 Evolution (DCNE), ... GSDC - Net
Slide 20: ETK Scorecard 0612A
ETK Scorecard 0612A FINANCIAL CUSTOMER COMPETITIVE INTERNAL EMPLOYEE POSITION EFFICIENCY ETK4: New customers ETK7: New Technology ETK13: Dialog ETK1: Orders booked ETK10: OPEX A. Jozinec M. Radtke M. Zivkovic contracts M. Radtke J. Jakovac ETK14: High ETK2: Income before ETK5: Customer ETK11: Leadin
Slide 21: Financial summary 2006
Financial summary 2006 MHRK 2005 2006 % Orders booked 1.608,0 1.623,6 1,0 Book-to-bill 1,0 1,0 Sales revenue 1.624,5 1.634,1 0,6 Cost of sales 1.300,9 1.347,9 3,6 Gross profit % 19,9 17,5 Result from operating activties 216,1 198,5 -8,1 Interest income and other financial income 64,5 93,5 45,0 Net f
Slide 22: Balance sheet highlights
Balance sheet highlights in HRK million Assets 2005 2006 % Cash and cash flow equivalents 192 281 46 Financial assets 492 437 -11 Inventories 31 31 0 Short term receivables from customers 670 560 -16 Other current assets 40 26 -35 Non current assets 477 608 27 Total assets 1.902 1.943 2 Liabilities
Slide 23: Cash and cash-flow development
Cash and cash-flow development Operational Cash-flow and development of liquid funds over the years MHRK 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 -50 0212A 0312A 0412A 0512A 0612A Cash Temporary investments Operational cash flow The level of liquid funds has increased again
Slide 24: Financial targets
Financial targets Stable but moderate sales’ growth Keeping the market share Balance the corner-stones Using the financial assets and available financial tools to develop business opportunities and secure growth (e.g. customer financing...) Continuous improvements in operating efficiency t
Slide 25: Ownership structure, March 2007
Ownership structure, March 2007 0,85 49,07 Largest shareholders: 50,08 Telefonaktiebolaget LM Ericsson 49,07% PBZ d.d / clients account 4,94% Bank Austria Creditanstalt AG 2,96% Ericsson Hansabank clients account 2,87% Other shareholders RBA d.d. 2,77% Treasury shares Skandinaviska Enskilda banken 2
Slide 26: Share price development 0601 - 0703
Share price development 0601 - 0703 HRK 3.600,00 3.400,00 During 2006 share price increased by more than 30% 3.200,00 • Lowest / highest price 1.850 HRK / 2.600 HRK • Closing price (year end) 2.500 HRK 3.000,00 2.800,00 • Total turnover: ZSE – 90,1 MHRK VSE – 410,5 MHRK 2.600,00 2.400,00 2.200,00 2.
Slide 27: From Ericsson wanted position to ETK
From Ericsson wanted position to ETK Strategy and actions Ericsson Ericsson Wanted WantedPositionPosition The prime driver in an all communicating world Summary The prime Summaryofofstrategies strategies… driver in an all communicating world … New Business Development Customer: Customer: Customers s
Slide 28: Wanted position
Wanted position Market Position – Strengthen position on Croatian, internal Ericsson and Export Markets, focused on new technology/new markets Customer – Keep/improve position of preferred ICT business partner on all markets through retention of existing and attraction of new customers. Operat
Slide 29: Strategies
ETK strategy temple Vision To contribute to the process of making prosperous countries where ETK operates through our leadership in the new economy Mission To understand our customers’ needs and opportunities To offer customer ICT solutions for their business better than any competitor To be a compe
Slide 30: ETK Focus Areas
ETK Focus Areas STRATEGIC FOCUS AREA to secure implementation of the Strategy Improve perception and extend business volume in Multimedia, Enterprise and SI Programs & Projects Units and Functions Build a strong position in Broadband and IP technologies Broaden R&D responsibilities in future Process
Slide 31: People are key
People are key We need everyone’s energy and ideas A team of 1350 experts - 87% with university degree The number of people increased (500 new employed in the last three years) Opportunity to fulfill their professional aspirations in Croatia New employment in ETK (2002-2006) 2006 153 2005 234
Slide 32: Awards and certificates
Awards and certificates The Golden Marten Award by the Croatian Chamber of Commerce The Order of the Croatian Star with Entrepreneur of the Year 2006 the effigy of Nikola Tesla. (Viewers of the Capital Network voted) The Charter of the ETK share had the highest Republic of Croatia turnover on the VS
Slide 33: Ericsson & Taking you forward
ERICSSON & TAKING YOU FORWARD
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