Consumer customers business. Asko Känsälä Executive Vice President

Transcription

1 Consumer customers business Asko Känsälä Executive Vice President

2 Content Strategy Financial performance Operational performance Competitive market dynamics New services opportunity Management priorities 2

3 Strategy We are continuing to execute our strategy Telecom services New services Rational subscriptions with world-class efficiency Net-based service experiences 3

4 Financial performance transforming our consumer business Revenues EURm 685 New services +57% 715 New services +2% Telecom services Telecom services 9M11 9M12 4

5 Financial performance with mid-single digit top-line growth Revenues EURm Year-on-year change % +4% +7% +4% +3% +5% +4% 1Q 2Q 3Q 4Q 5

6 Financial performance and scalability in operations 9M11 versus 9M12 EBITDA EUR 231m 4,5 % EBITDA margin 32,2% 0,0 % CAPEX EUR 84m 2,4 % CAPEX to sales 11,8% -0,2 % Operating free cash flow EUR 146m 5,7 % Operating free cash flow margin 20,4% 0,3 % 6

7 Operational performance Performing on par with the market Subscriptions change yoy in Finland 12 % 10 % Mobile Elisa 8 % 6 % 4 % 2 % 0 % - 2 % - 4 % - 6 % Mobile market Fixed broadband market Fixed broadband Elisa 1H08 2H08 1H09 2H09 2H10 2H10 1H11 2H11 1H12 Source: FICORA, company information, Elisa estimates 7

8 Operational performance tiered mobile broadband pricing yielding results Speed -based mobile data pricing Price per month Maximum speed Technology Availability Mbit/s 4G (DC&LTE) Dongles and tablets Data revenues Voice revenues Mbit/s 4G (DC&LTE) Phones, dongles and tablets Mbit/s 3G (HSDPA+) Phones, dongles and tablets Mbit/s 3G (HSDPA+) Phones, dongles and tablets Mbit/s 3G (HSDPA+) Phones only, present subscribers only 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 excl internconnect and device sales 8

9 Operational performance continued push for operational efficiency OPEX / subscription -7% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 9

10 Operational performance with further potential for improvement Focus area Number of IT systems Focus area Customer service contacts as a proportion of user base Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q10 3Q11 2Q10 4Q11 3Q10 1Q12 2Q12 3Q12 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Focus area Sales channel efficiency (Mobile SAC) Focus area Proportion of e-invoices 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 10

11 Operational performance and customer satisfaction and loyalty as drivers Mobile churn development Device gross margin development Sonera DNA Elisa 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Source: Company information, Elisa estimates 11

12 New services opportunity Adjacent new services offer attractive growth New services market opportunities in Finland Entertaining ca. EUR 2.5bn Enjoying Practising hobbies Hanging around Learning and understanding ca. EUR 1.5bn Satisfying curiosity Developing awareness Expressing opinions Managing daily routines ca. EUR 1.0bn Taking care of loved ones and belongings Making transactions Shopping 12

13 New services opportunity where we are already achieving encouraging results New services user base (thousands) CAGR 60% Q10 3Q11 3Q12 13

14 New services opportunity with additional services just launched 14

15 New services opportunity reinforcing our total business competitiveness There are clear consumer needs - demonstrated by the uptake of our differentiated offering We have concrete proof-points of being able to monetize these consumer needs Uplift of wallet share Increasing customer loyalty Gaining market share We are utilising and leveraging our core assets 15

16 Strategic and tactical priorities Management key priorities Telecom services New services Keeping market share and stimulating demand for data Striving for world-class efficiency Leveraging market position Extending services offering 16

17 Thank you! Q&A

18 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.