elisa powerpoint template · 3g subscriptions & services elisa broadband connections 308 346...

1 08/02/2007 Group Overview / Veli-Matti Mattila President and CEO

Group OverviewVeli-Matti Mattila

President and CEO

ContentsGROUP OVERVIEW

Performance since previous Investor DayElisa strategy Updated financial targets



Performance since previous Investor Day

Market position strengthened…GROUP OVERVIEW – PERFORMANCE SINCE PREVIOUS INVESTOR DAY


28% 28% 28%

36% 36%37%

39% 39%

47% 47% 47% 47% 47%45%

43%

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06E

PTT mobile market share

Broadband market shares in FinlandMobile market shares in Finland

Elisa mobile market share

31%

32%

35%36% 36%

35%35%

31%

30%

29%29%29%29%29%

30%

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06E

Source: Company reports, Elisa estimates

… and productivity improved…GROUP OVERVIEW – PERFORMANCE SINCE PREVIOUS INVESTOR DAYPersonnel

Personnel (at end of period)

6467 68

7380

91

106112

17 17 18 1924 24

34 33

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06

Revenue & EBITDA per personRevenue per person (EURt)

EBITDA per person (EURt)52054988

4772 46814367

4216

3661 3592

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06


All numbers comparable (excl. EO items)

…enabling leadership in growth businesses GROUP OVERVIEW – PERFORMANCE SINCE PREVIOUS INVESTOR DAY3G subscriptions & services Elisa broadband connections

308

346

420

460 473 480496

269

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06

Total 3G bundle market(cumulative, '000)

Broadband connections (thousands)

167

263

358

52

258

383

522

1Q06 2Q06 3Q06 4Q06

Total 3G subscribtion market(cumulative, '000)

Elisa’ market share>50%


Source: Company reports, Elisa estimates

Profitability improved after hypercompetitionGROUP OVERVIEW – PERFORMANCE SINCE PREVIOUS INVESTOR DAY

85

97107

118 120

101

111104

86 84 8589

103 100

123 119

23%25%

28%30%

36%

30%33%

30%

26% 25% 26% 26%

30%

26%

32%30%

Q12003

Q22003

Q32003

Q42003

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

Q22006

Q32006

Q42006

EBITDA EBITDA-margin

Elisa Investor Day (Feb ’05)


Progress towards given targets well on trackGROUP OVERVIEW – PERFORMANCE SINCE PREVIOUS INVESTOR DAY

Parameter Target set in Feb 2005 Execution so far

Average revenue growth Flat to slightly positive annually on comparable basis

Clear improvement (i.e. from 31% in FY04)

Operative capex-to-sales 11-13%

Improvement from the current level (i.e. from EUR 259m in FY04)

Net debt / EBITDA: 1 - 2xGearing: 50 - 80%Equity ratio: 40 - 50%

Above 15%

EBITDA-margin

13.0% (2H06)

30.6% (2H06)

14.0% (2H06)

EUR 264m (2H06 annualized)

0.78x (2H06)28.6% (end-06)63.4% (end-06)

CAPEX

Operative cash flow

Capital structure

ROCE 16.5% (2H06)


*) All figures on a comparable basis


Elisa strategy

Internet is driving new services…GROUP OVERVIEW – MARKET DYNAMICS

SPIT

SPIM


…and development in mobile is enriching users´ lifeGROUP OVERVIEW – MARKET DYNAMICS


Elisa strategy GROUP OVERVIEW – ELISA STRATEGY

Integrating One Elisa

New services and new markets

2003–

Strengthening market position 2005–


…still significant further potential…GROUP OVERVIEW – ELISA STRATEGY: INTEGRATING ONE ELISA

Product and services streamlining

Processes

Outsourcing

Procurement


…e.g. within IT-systems GROUP OVERVIEW – ELISA STRATEGY: INTEGRATING ONE ELISA

Present IT-systems include for example:Customer relationship management systems ~ 80 systemsBusiness intelligence systems ~ 50 systemsOrdering and self service systems ~ 50 systemsOperations support systems ~ 40 systemsHR and Administration ~ 40 systems


Customer oriented business units platform for growth GROUP OVERVIEW – ELISA STRATEGY: STRENGTHENING MARKET POSITION

Networks

Products

Customers

Consumers Enterprises

ProductionElisa 2003

Elisa 2004 -2005

Elisa 2006 -

Origoltd

Invoicialtd

Lounetltd

Aava ltd ElisaNetworks ltd RPO ltd

Radiolinjaltd

ElisaComltd Soon ltd

ElisaMobile

ElisaFixed

ElisaRegional


Opportunistic development of new services GROUP OVERVIEW – ELISA STRATEGY: NEW SERVICES AND NEW MARKETS

Market drivers•Web 2.0 services

•Mobility•A ”Flat world”•Open source

Mobility•Broadband

•Convenience• Imaging and video•Audio and music

Open source•Users as an integrated part

of service development•Users as contributors

•Open source applications•Customer self service

Web 2.0 services•User generated content

•Tagging and search•Long tail

•New Pricing

A “Flat world”•Global value networks

•Compressed supply chains•Services available 24/7• International workflow


Opportunistic search for new marketsGROUP OVERVIEW – ELISA STRATEGY: NEW SERVICES AND NEW MARKETS



Updated financial targets – by end-2009

Updated financial targets – by end-2009GROUP OVERVIEW

ROCE

Capital structure• Net debt / EBITDA

• Gearing

Capex-to-sales (operative)

EBITDA-margin

Average revenue growthpercentage yoy

Above 20%

1.5 - 2x50 - 100%

10 - 12%

Above 35%

Mid single digit

Target*Parameter


*) All figures on a comparable basis

CEO prioritiesGROUP OVERVIEW

Further productivity improvements targeting

world-class efficiency

Further strengthening market position via

service leadership

Opportunistic development of

new businesses and acquisitions



Thank you and Q&A

Forward looking statements

Statements made in this document relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty 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 the control of Elisa.


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