Elisa Oyj Class A · OMXHEX:ELISA
Elisa Oyj Class A — Non-Deal Roadshow (September 2005)
19 slides from Elisa Oyj Class A's roadshow presentation, September 2005
Slide 1: Roadshow September 2005
Roadshow September 2005 Elisa Corporation Roadshow, September 2005 1
Slide 2: Contents
Contents • Elisa today • Q2 2005 and financial highlights • Elisa and the Finnish telecoms market review • Saunalahti transaction • Development of operations • Future outlook Elisa Corporation Roadshow, September 2005 2
Slide 3: Elisa Today
Elisa Today • Full range of telecom services Revenue per segment in Q2 2005 − No 1 fixed network operator Others 3% − No. 2 mobile operator in Finland and in Mobile 50% Estonia • Offering Pan-European and global scope Fixed 47% through partnerships − Vodafone and Telenor • Key figures in H1 2005 Sha
Slide 4: Elisa Q2 2005 highlights
Q2 2005 and financial highlights Elisa Q2 2005 highlights • Elisa continued its success in fierce competition, market position strengthened • Elisa will improve its market position further with the Saunalahti transaction • Fierce competition and price erosion continued • Simplification of company st
Slide 5: Operative result as expected
Q2 2005 and financial highlights Operative result as expected • Revenue EUR 336m (339) Revenue and EBITDA-% • EBITDA EUR 170m (102) − One-off items EUR 86m, operative 351 339 333 333 336 EBITDA EUR 84m • EBIT EUR 118m (48) • Pre-tax profit EUR 113m (41) • EPS EUR 0.66 (0.20) 51 % Strong financial po
Slide 6: Actors in the Finnish mobile market Q2 2005
Finnish telecom market Actors in the Finnish mobile market Q2 2005 Network operator Elisa TeliaSonera Finnet Networks 3G 3G 3G Finland Own service Elisa Sonera DNA providers Kolumbus (side- Tele Finland brand) Zero Forty MVNO’s Saunalahti Saunalahti Tele2 3G Independent TDC Song ACN Maingate service
Slide 7: Market shares in Q2 2005
Finnish telecom market Market shares* in Q2 2005 Others 1.0% Others 6.4% Finnet 14.6% Elisa 31.9% DNA 14.0% Elisa 28.2% Elisa 30.9% HTV** 5.8% Finnet 23.2% Sauna- Saunalahti lahti 3.4% 9.7% Sonera 47.1% Sonera 30.3% TeliaSonera 53.5% Mobile network operators Mobile service operators Fixed broadband
Slide 8: Mobile handset subsidies in 3G
Finnish telecom market Mobile handset subsidies in 3G • The Ministry of Transport and Communications proposes that the prohibition on bundling 3G mobile phones and subscriptions will be removed • The proposal would enable a 24-month SIM-lock • The law would take effect in before year end • Elisa’s s
Slide 9: Growth in mobile subscriptions continued
Market review, Elisa’s mobile business Growth in mobile subscriptions continued Subscriptions and net change • Net adds 26,600 in Q2 1 500 1 438 1465 − Strengthened market position 1 331 1 368 1 384 • Continued fierce competition 1 300 − Churn 32.3% (29.4) − Price erosion continues, ARPU EUR 33.8 1
Slide 10: Strong broadband sales continued
Market review, Elisa’s fixed network business Strong broadband sales continued Broadband subscriptions 350 000 • ADSL subscription growth 92% yoy 308 183 • Net adds 39,000 in Q2 300 000 269 232 • Stronger market position, especially 250 000 outside the capital region 222 307 • 200 000 Decrease in an
Slide 11: Saunalahti transaction
Saunalahti transaction • Bigger and more competitive Finnish operator in all customer segments • Saunalahti’s competitive business model will continue with Saunalahti brand • The combination will offer significant scope for increasing shareholder value − synergy benefits and further growth opportuni
Slide 12: Elisa strategy
Development of operations Elisa strategy 2005 - 2003 - New markets Strengthening market position Integration in core markets of One Elisa Elisa Corporation Roadshow, September 2005 12
Slide 13: Operational priorities
2005 - Development of operations – One Elisa integration 2003 - New markets Operational priorities Strengthening market position Integration in core markets of One Elisa • Sale of real estate Significant profitability • Personnel reductions improvement • Ongoing cost cutting programs • Change in ope
Slide 14: New services: Push Mail and Elisa Mobi
Customer orientation New services: Push Mail and Elisa Mobi Vodafone Push Mail • Real-time, secured services for e-mail, calendar and address book to handset • Operates in all countries, where Elisa has a GPRS or 3G roaming agreement • Operator independent service • Available in several high end ter
Slide 15: Outlook for 2005
Outlook for 2005 • Keen competition will continue • Elisa continues to strengthen its market position • Comparable revenue at 2004 level – competitiveness will improve and profitability remains good • No major changes in H2 comparable EBITDA and EBIT compared to H1 levels − Assumption: MVNO traffic,
Slide 16: Roadshow September 2005
Roadshow September 2005 Elisa Corporation Roadshow, September 2005 16
Slide 17: Consolidated Cash flow statement
Appendix slide Consolidated Cash flow statement CONSOLIDATED CASH FLOW STATEMENT EUR million Q2 2005 Q1 2005 Q4 2004 Q3 2004 Q2 2004 Cash flow from operating activities Profit before tax 113 39 65 50 41 Adjustments to profit before tax -11 47 34 57 46 Change in working capital 8 -26 18 -16 27 Cash f
Slide 18: Financial situation
Appendix slide Financial situation FINANCIAL SITUATION (EUR million) 30 Jun 2005 31 Mar 2005 31 Dec 2004 20 Sep 2004 30 Jun 2004 Interest-bearing debt Bonds and notes 458 463 467 570 571 Loans from the Pension fund 0 64 75 80 80 Loans from financial institutions 1 0 0 2 2 Financial leases 63 61 68 6
Slide 19: Elisa's quarterly key figures
Appendix slide Elisa’s quarterly key figures Group Segments EURm Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Mobile Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Revenue 336 333 351 333 339 333 Revenue 180 179 180 179 175 179 EBITDA 170 97 122 111 101 120 ARPU, EUR 33,8 34,6 37,0 37,5 38,2 38,6 EBITDA-% 51 % 29 % 35