Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Investor Day (2021)
17 slides from Elisa Oyj Class A's investor day presentation, 2021
Slide 1: CMD2021
diss | CMD2021
Slide 2: Financial overview
Financial overview Jari Kinnunen CFO
Slide 3: Elisa's unique strategy generates sustainable profit and growth
Elisa’s unique strategy generates sustainable profit and growth 1 Performance update 2 Sustainable profit and growth generation 3 Capital allocation 4 Reporting 5 CFO priorities
Slide 4: Solid performance has continued…
Performance update Solid performance has continued… Revenue CAGR 2018–2020 Average operating cash flow Average ROCE 2018–2020 conversion 2018–2020 Tele2 10.4% Tele2 65.6% Elisa 17.2% Telenor 7.7% Elisa 65.3% Telenor 15.7% Telia 3.3% KPN 65.1% Proximus 10.1% Elisa 1.7% Telenor 59.1% BT 9.7% Telekom A
Slide 5: …with good operating leverage and free cash flow conversion…
Performance update …with good operating leverage and free cash flow conversion… • Focused business model 2020 YoY growth • Continuous productivity Revenue -2.0 % 2.8% improvement EBITDA 2.6% 0.3 % • Low CAPEX-to-sales EBIT -1.7 % 3.3% 6.0% • Disciplined M&A policy EPS • Low effective tax rate Compar
Slide 6: …and in line with mid-term financial targets
Performance update …and in line with mid-term financial targets = Below target = In target Revenue growth above peer group1) EBITDA margin 10% 38% 5% 37% 36% 0% 35% -5% 34% 33% -10% 32% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenue growth
Slide 7: Clear drivers for revenue growth…
Profit and growth generation Clear drivers for revenue growth… Growing digital and mobile accounts for ¾ of revenue Share of 2020 CAGR Medium-term trends revenue 2018–2020 Mobile service revenue 44% 1% 5G, up-selling, product changes, add-on services Interconnection & roaming 3% -7% Interconnection
Slide 8: …and EBITDA growth
Profit and growth generation …and EBITDA growth Drivers for EBITDA growth MSR growth: 4G/5G upselling, product changes Increase mobile and fixed service revenues Fixed BB upselling to higher speeds Add-on services Increasing scale Organic growth, bolt-on acquisitions, strategic partnerships Grow dig
Slide 9: Strict 12% CAPEX-to-sales policy continues…
Capital allocation Strict 12% CAPEX-to-sales policy continues… CAPEX/sales vs. peer group1) Future-proof high-quality Gigabit capable household connections Fibre and 5G 20% 5G-ready cloud-based core, 53% 18% modern IP network and 2019 16% Peers extensive fibre backbone 2020 24% 14% Elisa 12% 10% 201
Slide 10: …and disciplined, value-driving M&A…
Capital allocation …and disciplined, value-driving M&A… Criteria for acquisitions • Focus on international digital services and domestic IT and telecom services Strategic • Industrial logic • Accelerates growth • Concrete value creation plan Operational • Strengthens competitiveness • Synergies • Fi
Slide 11: …as well as efficient capital structure to support growth…
Capital allocation …as well as efficient capital structure to support growth… Capital structure targets Net Debt/EBITDA P&L financial expenses 25 26 2.5 Net debt/EBITDA 2.2 2.4 21 1.5–2× 1.7 1.8 1.8 Equity ratio 2018 2019 2020 2018 2019 2020 >35% Elisa Peer group average Ratings ROCE Diversified mat
Slide 12: …leads to unparalleled profit distribution
Capital allocation …leads to unparalleled profit distribution Distribution policy reiterated Increasing dividend for 7 consecutive years Pay-out 80–100% 98% 96% Excess capital can be distributed to shareholders 94% 95% 92% 91% 91% 90% Decision-making criteria • Company's financial position CAGR 6% •
Slide 13: Long-term, consistent ESG reporting
Reporting Long-term, consistent ESG reporting • Annual corporate responsibility reporting (GRI) since 2011 – Prepared according to the Global Reporting Initiative Standard requirements – Since 2013 third-party verification – Signed by the Board of Directors since 2017 • Elisa reports selected indica
Slide 14: Reporting changes in quarterly data excel from Q1 2021 onwards
Reporting Reporting changes in quarterly data excel from Q1 2021 onwards Fixed and digital revenues Product revenues, EURm 1Q20 2Q20 3Q20 4Q20 2020 Mobile revenue 275.4 271.7 280.2 296.0 1,123.3 split between of which Service revenue 207.9 204.3 206.4 209.3 827.9 of which equipment sales 52.8 52.7 5
Slide 15: Elisa's unique strategy generates sustainable profit and growth
CFO priorities Elisa’s unique strategy generates sustainable profit and growth Elisa’s approach Sustainable profit and growth generation • Growth Increase mobile and fixed service revenues • CAPEX efficiency • Earnings and cash flow conversion • Disciplined M&A, low CAPEX Grow digital service busine
Slide 16: Thank you
elise CMD2021 THANK YOU.
Slide 17: 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