Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (October 2016)
21 slides from Elisa Oyj Class A's investor day presentation, October 2016
Slide 1: CMD
CMD
Slide 2: Consumer Customers business
Consumer Customers business Asko Känsälä 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: Steady revenue growth performance…
Performance update Steady revenue growth performance… Revenue, EURm 300 +7% +3.5% CAGR +4% +6% +3% +2% +1% 2014–LTM top- 250 +1% line growth resulting from 200 • +5.9% service revenue growth 150 based on service upgrades • -3.5% decline in 100 devices, interconnection 50 and visitor roaming mainly d
Slide 5: … fuels mid-single-digit EBITDA growth…
Performance update … fuels mid-single-digit EBITDA growth… EBITDA, EURm 120 13 consecutive +8% quarters 100 +4% +8% +8% +2% +6% outperforming +7% the corresponding 80 quarter of the previous year 60 resulting +6.3% CAGR 40 2014–LTM EBITDA growth 20 0 1Q 2Q 3Q 4Q 2014 2015 2016 Excl. one-offs 5
Slide 6: … as customer recommendation continues to improve
Performance update … as customer recommendation continues to improve Consumer mobile broadband and entertaining services NPS in Finland, 1/2014–present 35 30 25 20 15 10 5 0 Mobile broadband Entertaining services NPS = Net Promoter Score Sources: IRO Research, Elisa analysis 6
Slide 7: Solid domestic position in telecom services and further opportunities in digital services,…
Market environment Solid domestic position in telecom services and further opportunities in digital services,… Consumer telecom services market 2015, Consumer digital services market 2015, EURm EURm ~2,400 >1,000 growth YoY +1% growth YoY >10% Elisa Other companies Elisa Other companies Sources: Fic
Slide 8: …as growth in telecom services continues to be driven by strong demand for fast internet connectivity
Market environment …as growth in telecom services continues to be driven by strong demand for fast internet connectivity Fixed broadband subscriptions market Mobile broadband subscriptions market in Finland, thousands in Finland, thousands 2 000 10 000 1 800 9 000 1 600 8 000 1 400 7 000 1 200 6 000
Slide 9: Strategic priorities remain intact
Strategy execution Strategic priorities remain intact Build value on data Accelerate digital service business Improve performance through customer intimacy and operational excellence 9
Slide 10: Telecom services revenues continue to grow at a mid-single-digit pace,...
Strategy execution Telecom services revenues continue to grow at a mid-single-digit pace,... Consumer telecom revenues, EURm 886 905 867 CAGR +4.7% 2014 2015 LTM Devices, interconnection, visitor roaming Telecom services Telecom services, CAGR LTM = Last twelve months, 10/2015–9/2016 10
Slide 11: …as 4G uptake brings further value to customers and to Elisa,…
Strategy execution …as 4G uptake brings further value to customers and to Elisa,… 4G customers are most active voice Most 4G upgrades are still ahead in voice subscription customers subscription base +44% +55% +72% +818% 37% 46% 17% NPS Average billing Data usage Voice+sms usage 2G 3G 4G 2G subs 3G
Slide 12: Slide 12
Slide 13: …additional services opportunities are materialising…
Strategy execution …additional services opportunities are materialising… Telecom additional services revenues, EURm CAGR +39.5% 2014 2015 LTM 13
Slide 14: …and fiber uptake is another further potential
Strategy execution …and fiber uptake is another further potential FTTx enhances customer satisfaction Lot of room for FTTx upgrades in SDU and ARPU ADSL customer base +30% 47% 53% NPS Average billing SDU ADSL SDU FTTx SDU ADSL SDU FTTx SDU = single dwelling unit FTTx = fibre to the house/building/cu
Slide 15: Digital services top-line continues double-digit growth…
Strategy execution Digital services top-line continues double-digit growth… Digital services revenue development, EURm CAGR +14.1% 107 97 85 2014 2015 LTM Digital services international Digital services Finland 15
Slide 16: …as the business aims for further scalability
Strategy execution …as the business aims for further scalability Domestic digital services EBITDA trend, Digital services peer group comparison, EURm EBITDA-% Positive ~9× Negative 2014 2015 LTM Domestic digital services Peer group (ComHem, Schibsted, Tivo) Sources: company reports, Elisa analysis 1
Slide 17: Solid track record in improving customer intimacy…
Strategy execution Solid track record in improving customer intimacy… Customer care first call resolution rate Elisa customer effort score +7pp +28pp 2014 2015 LTM 2014 2015 2016 Sources: CEB Global studies 2014–2016, Elisa analysis Customer effort score 2.0 question: To what extent do you agree or
Slide 18: …fuels further potential in enhancing operational excellence
Strategy execution …fuels further potential in enhancing operational excellence Customer care contacts (calls, emails, Web shop transactions chats) CAGR CAGR -10.8% +29.8% 2014 2015 LTM 2014 2015 LTM 18
Slide 19: Management key priorities
Management priorities Management key priorities Build value on data Stimulating demand for speed | Enhancing value capture Accelerate digital service business Leveraging market position | Capturing larger wallet-share Improve performance through customer intimacy and operational excellence Striving
Slide 20: Thank you
— Wise CMD THANK YOU
Slide 21: 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