Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (October 2016)
22 slides from Elisa Oyj Class A's investor day presentation, October 2016
Slide 1: CMD
CMD
Slide 2: Corporate Customers business
Corporate Customers business Timo Katajisto Executive Vice President
Slide 3: Performance update, market environment, strategy execution, management priorities
1 Performance update 2 Market environment 3 Strategy execution 4 Management priorities
Slide 4: Year-on-year revenue growth progressing…
Performance update Year-on-year revenue growth progressing… Revenue, EURm 180 +1% CAGR 160 +2% +0% +5% +2% 2014–LTM top- -3% +1% +1% 140 line growth resulting from 120 • +1% service 100 revenue growth and 80 • -2% decline 60 in devices, 40 interconnection and roaming 20 0 Q1 Q2 Q3 Q4 2014 2015 2016
Slide 5: …with increasing profitability
Performance update …with increasing profitability EBITDA, EURm1) 60 +6% EBITDA -2% improvement in 50 -4%+1% +1% -4% +3% last four quarters driven by 40 • service revenue growth and 30 • Improvement in quality and 20 automation 10 0 Q1 Q2 Q3 Q4 2014 2015 2016 1) Comparable EBITDA 5
Slide 6: Continuous improvement reflected in customer satisfaction
Performance update Continuous improvement reflected in customer satisfaction Corporate customers NPS and transactional NPS 1/2014-present 35 30 25 20 15 10 5 0 -5 -10 -15 Customer NPS Transactional NPS NPS = Net Promoter Score Sources: IRO Research (NPS), EPSI Rating; Mobile services 2016 6
Slide 7: Utilising telecom footprint to expand in IT
Market environment Utilising telecom footprint to expand in IT Corporate market telecom services 2015, IT services1) market 2015, EURm EURm ~1,300 >1,600 growth YoY -1% growth YoY +5% Elisa Other companies Elisa Other companies 1) IT Outsourcing & Cloud services Sources: Gartner LINE (Finland), Gart
Slide 8: Digitalisation fuelling market growth of mobile data, cloud and cybersecurity
Market environment Digitalisation fuelling market growth of mobile data, cloud and cybersecurity Market growth1) Mobile data Cloud Cybersecurity CAGR +13% CAGR +23% CAGR +13% 2012 2015 2012 2015 2012 2015 1) End user spending in Finland Sources: Gartner LINE (Finland), Gartner, Elisa analysis 8
Slide 9: We see further opportunities in all three strategic focus areas
Strategy execution We see further opportunities in all three strategic focus areas Build value on data Accelerate digital service business Improve performance through customer intimacy and operational excellence 9
Slide 10: Our telecom revenue is growing despite declining interconnection fees
Strategy execution Our telecom revenue is growing despite declining interconnection fees 447 452 460 CAGR +2% 2014 2015 LTM Telecom services, EURm Devices, interconnection and visitor roaming, EURm Telecom services, CAGR 10
Slide 11: Mobile data is the main growth driver...
Strategy execution Mobile data is the main growth driver... Mobile data revenue exceeding voice Value capture works for higher speeds +25% +95% 1Q14 1Q15 1Q16 3Q16 2G 3G 4G Mobile data revenue, EURm 2G-4G avg. ARPU, EUR / subscriber Mobile voice revenue, EURm 11
Slide 12: …with good upgrade potential
Strategy execution …with good upgrade potential 4G subscriptions base developing quickly Continuing upsell of fast 4G subscriptions +57% Upgrade potential 63% 3Q15 3Q16 Slow subscriptions (≤21Mbit/s) Fast 4G subscriptions (>21Mbit/s) 12
Slide 13: Data networks is the base for digital services
Strategy execution Data networks is the base for digital services Growth in LAN, WLAN and Demand for higher Cybersecurity fuels growth data networks bandwidth of security services CAGR 100% +7% CAGR +13% 50% CAGR +6% 0% 2014 2015 LTM 2014 2015 LTM 2014 2015 LTM Corporate data networks connections %
Slide 14: IT sales is driven by customer benefits…
Strategy execution IT sales is driven by customer benefits… Speed, cost and scalability Virtualisation Excellent end user support CAGR CAGR +8% +7% CAGR +32% 3Q14 3Q15 3Q16 2014 2015 Q316 2014 2015 Q316 IT cloud service customers Outsourced servers Outsourced workstations (Billed customers) (U
Slide 15: …and we are well positioned for the future
Strategy execution …and we are well positioned for the future Q: Consideration as co-operation partner in the future Elisa HP IBM Fujitsu Atea CGI Capgemini Tieto Enfo Digia Isoworks Accenture Atos 0% 20 % 40 % 60 % 80 % 100 % Likely Neutral Unlikely Elisa is considered the most likely partner in th
Slide 16: Cloud is the fastest-growing IT service…
Strategy execution Cloud is the fastest-growing IT service… Faster than market growth in cloud Low-single-digit growth in IT services 136 134 134 CAGR CAGR +31% +3% CAGR -5% 2014 2015 LTM 2014 2015 LTM Cloud service revenue, EURm IT services, EURm Digital Service revenue excluding IT, EURm 16
Slide 17: …and we have a portfolio of other digital services in growth areas
Strategy execution …and we have a portfolio of other digital services in growth areas Videoconferencing Digital customer Internet of Things services engagement (IoT) solutions Re-focusing international video Expanding existing customer Experimenting to find scalable services business for improved ca
Slide 18: Our continuous improvement is visible in customer-facing operations…
Strategy execution Our continuous improvement is visible in customer-facing operations… Complaints Customer care contacts Automated orders CAGR -33% CAGR +3% CAGR +7% CAGR -15% 2014 2015 LTM 2014 2015 LTM 3Q14 3Q15 3Q16 Number of complaints Contacts Subscribers Automated orders (index: 1Q14
Slide 19: …and in back office efficiency
Strategy execution …and in back office efficiency Workstations per person Servers per person Online contacts CAGR +8% 71% CAGR 68% +9% 50% 2014 2015 LTM 2014 2015 LTM 2014 2015 LTM 19
Slide 20: Fostering growth and profitability
Management priorities Fostering growth and profitability Build value on data Upgrade to 4G Accelerate digital service business Expand IT and Find traction with new digital services Improve performance through customer intimacy and operational excellence Focus on online and automation 20
Slide 21: Thank you
elise CMD THANK YOU
Slide 22: Forward looking statements
Elisa CMD 27 October 2016 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 e