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Group overview Veli-Matti Mattila CEO

Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

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Page 1: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Group overview

Veli-Matti Mattila CEO

Page 2: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

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2

3

4

Performance update

Strategy execution

Mid-term targets and dividend policy

CEO priorities

Content

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Page 3: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Revenue growth exceeding the industry average …

351 355

360 365

353

364 363

383

374 378 378

401

382 389 387

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Performance update

All numbers comparable (excl. EO items)

Revenue, EURm

2.5%*

*European telcos* comparable domestic revenue growth <0% (3Q09 - 3Q12)

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Page 4: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

…EBITDA is improving …

115 116

131

121

116 118

127

123

119 121

135 133

121 122

134

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Performance update

All numbers comparable (excl. EO items)

EBITDA, EURm

4

Page 5: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

…and transformation with New services gaining momentum…

Performance update

* Revenue change 2008-2009 published at CMD 2010

Telecom services

New services

Telecom services

New services

+0.2% (-4.5%*)

+24.5% (+9.3%*)

9M11 9M12

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Page 6: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

…and almost all mid-term targets on track

Performance update

Parameter Target by end of 2013

Capital structure Net debt / EBITDA Equity ratio

CAPEX-to-sales

EBITDA-margin

Revenue growth

1.5 - 2x > 35%

≤ 12%

Above 35%

Above industry average

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Page 7: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Strategy execution continues...

Strategy execution

New services and new markets

Strengthening market position in core markets

Integration of One Elisa

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Page 8: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

…with significant potential in productivity improvements… • Process development • Streamlined and consolidated IT • Procurement and sourcing • Effective use of capital

Strategy execution

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Page 9: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

…proven by recent results

5,3 % 3,8 % 3,0 %

2010 2011 1-3Q12

Strategy execution

0,7

5,7 5,1

2010 2011 1-3Q12

Streamlined and consolidated IT E.g. IT consolidation savings, EURm

1,3 1,5 1,5

2010 2011 1-3Q12

19,1 %

21,4 % 21,6 %

2010 2011 LTM*

Effective use of capital E.g. ROCE

Process development E.g. Billing contacts / invoice volume

Procurement and sourcing E.g. Global sourcing savings, EURm

* LTM = Last 12 months (4Q11 – 3Q12) 9

Page 10: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Focus in Telecom services is on data...

0

2

4

6

8

10

12

14

0% 5%

10% 15% 20% 25% 30% 35% 40%

1Q10

2Q

10

3Q10

4Q

10

1Q11

2Q

11

3Q11

4Q

11

1Q12

2Q

12

3Q12

Smartphone penetration

Mobile data (PB)

Strategy execution

New devices drive data demand… …and increase broadband subscriptions

10

2010 = 100 Mobile BB Including dongles, excluding add-on services

100 130 136

15

2010 2011 3Q12

3G Mobile broadband 4G Mobile broadband

100 104 109

2010 2011 3Q12

Fixed Broadband

Page 11: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Opportunities found on the basis of: • customer frustrations and desires • consumers’ money and time usage • productivity improvement potential

for organisations • embracing new technologies Selection based on: • Elisa's capabilities and assets • attractiveness from the profit potential

point of view New businesses developed • close feedback loop with lead

customers • experimentation • independent of one another

Strategy execution

…and new service businesses are developed based on market demand

Cloud and IT

Customer interaction

Entertaining

Learning and understanding

Managing daily routines

Visual communications

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Page 12: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Mid-term targets updated…

Parameter Target by end of 2015

Capital structure Net debt / EBITDA Equity ratio

CAPEX-to-sales

EBITDA-margin

Revenue growth

1.5 - 2x > 35%

≤ 12%

Above 35%

Above industry* average

* European telcos 12

Page 13: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

…and distribution policy upgraded

Profit distribution is 80-100* per cent of the previous fiscal year’s net profit. In addition possible excess capital can be distributed to shareholders. When making the distribution proposal or decision the Board of Directors will take into consideration the company´s financial position, future financial needs and financial targets. Profit distribution methods include dividend payment, capital repayment and purchase of treasury shares.

*Previously 40-60 13

Page 14: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

CEO priorities

Continue determined productivity improvement by targeting

world-class operational excellence

Securing the value capture of the

mobile data explosion

Further accelerating the transformation via

new services businesses

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Page 15: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

Thank you! Q&A

Page 16: Elisa CMD 2012corporate.elisa.fi/attachment/elisa-oyj/CMD_2012_CEO.pdf · Performance update . Parameter . Target by end of 2013 . Capital structure . Net debt / EBITDA . Equity ratio

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 the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements, due to many factors, many of which are outside of Elisa’s control.

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