Group Overview. Veli-Matti Mattila CEO

Transcription

1 Group Overview Veli-Matti Mattila CEO

2 Contents 1. Performance update 2. Strategy execution 3. CEO priorities 2 15/02/2010

3 Performance update Improving productivity Streamlining products and services e.g. reduction in the number of subscription types Process improvements: - e.g. shortened lead times, automatisations IT consolidation: - from 260 to 160 systems Effective sourcing and procurement: - significant reduction in network equipment prices OPEX / subscription, EUR Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 All numbers comparable (excl. EO items) 3 15/02/2010

4 Performance update and competitive market position created Mobile market shares Fixed BB market shares 0 % 10 % 20 % 30 % 40 % Elisa TeliaSonera DNA Fixed network market shares 0 % 10 % 20 % 30 % 40 % Elisa TeliaSonera DNA Finnet Others Cable TV market shares 0 % 10 % 20 % 30 % 40 % Elisa TelisaSonera DNA Finnet Others 0 % 10 % 20 % 30 % 40 % Elisa TelisaSonera DNA Welho Others Source: Elisa estimate 4Q /02/2010

5 Performance update Even in weak economic conditions GDP change Economy deteriorated further in 2009 Unemployment In 2010 GDP is estimated to improve but still clearly below long term average Unemployment is expected to increase in 2010 Source: Consensus of seven institutions estimates 5 15/02/2010

6 Performance update growing new services business Online and ICT Services Online and ICT Services + 9.3% Online and ICT Services Telecom Services Telecom Services -4.5% Telecom Services /02/2010

7 Performance update and improving profitability EBITDA, EURm EBITDA margin % % % 35 % % 33 % % % 30 % 30 % 30 % 29 % 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q /02/2010

8 Strategy execution

9 Strategy execution Disruptions create strategic opportunities Online entertainment 100 million yearly paid tickets in Finnish public transportation by 2015 (3). Globally mobile tickets will grow from 2 billion in 2009 to 15 billion by 2014 (4) Safety Mobile wallet Targeted digital messaging ereading Globally, mobile data traffic will double every year through 2014, increasing 39 times between 2009 and (5) Public eservice accounts provided for citizens and corporations will enable all relevant public services by (3) By 2012, increased use of video telepresence will divert 3.5 billion USD in annual revenue from travel and hospitality industry. (1) Identity information Public eservices Managed infrastructure Online collaboration Online virtualization Enterprise mobility Social interactions Enterprise video By 2012, 20 percent of corporations will own no IT assets due to shift from IT hardware to hosted services and applications e.g. SaaS. (1) Software-asa-service 9 15/02/2010 Source: (1) Gartner 2010, (2) PWC 2009 (3) Finnish Ministry objectives 2009, (4) Juniper Research 2010, (5) Cisco 2010

10 Strategy execution...which our strategy is well aligned to exploit New services and new markets Strengthening market position in core markets Integration of One Elisa 10 15/02/2010

11 Strategy execution Determined improvement of productivity Self-service and automatisation IT consolidation Sourcing and procurement Quality improvements 11 15/02/2010

12 Strategy execution and development of new Online and ICT services businesses Customer intimacy Corporate Customers Total market potential ~EUR 6bn Consumer Customers Total market potential ~EUR 8bn 12 15/02/2010

13 Strategy execution will enable us to meet our financial targets Financial targets by end-2011 Parameter Target Revenue growth Above industry average EBITDA margin Above 35% CAPEX-to-sales 10-12% Capital structure Net debt / EBITDA Equity ratio 1.5-2x > 35% 13 15/02/2010

14 CEO priorities Determinedly driving productivity by targeting world-class operational excellence Further strengthening development of new services businesses Actively leading the corporate-wide transformation 14 15/02/2010

15 Thank you and Q&A

16 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 forwardlooking statements due to many factors, many of which are outside the control of Elisa /02/2010