corporate customers business · the future 15 0 % 20 % 40 % 60 % 80 % 100 % elisa hp ibm fujitsu...
TRANSCRIPT
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Corporate Customers business Timo Katajisto
Executive Vice President
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1 Performance update
2 Market environment
3 Strategy execution
4 Management priorities
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0
20
40
60
80
100
120
140
160
180
Q1 Q2 Q3 Q4
2014 2015 2016
Performance update
Year-on-year revenue growth progressing…
4
Revenue, EURm
+2% +0% -3% +1% +1% +5% +2%
+1% CAGR
2014–LTM top-
line growth
resulting from
• +1% service
revenue growth
and
• -2% decline
in devices,
interconnection
and roaming
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0
10
20
30
40
50
60
Q1 Q2 Q3 Q4
2014 2015 2016
Performance update
…with increasing profitability
5
EBITDA, EURm1)
-4% -4%
+1% +1%
-2% +6%
+3%
1) Comparable EBITDA
EBITDA
improvement in
last four quarters
driven by
• service revenue
growth and
• Improvement
in quality and
automation
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-15
-10
-5
0
5
10
15
20
25
30
35
Performance update
Continuous improvement reflected in customer satisfaction
6
Corporate customers NPS and transactional NPS 1/2014-present
NPS = Net Promoter Score
Sources: IRO Research (NPS), EPSI Rating; Mobile services 2016
Customer NPS Transactional NPS
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Elisa Other companies Elisa Other companies
Utilising telecom footprint to expand in IT Market environment
7
Corporate market telecom services 2015, EURm
IT services1) market 2015, EURm
1) IT Outsourcing & Cloud services
Sources: Gartner LINE (Finland), Gartner, Elisa analysis
~1,300 growth YoY -1%
>1,600 growth YoY +5%
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Digitalisation fuelling market growth of mobile data, cloud and cybersecurity
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2012 2015 2012 2015
Market growth1)
Cybersecurity
2012 2015
Cloud
Market environment
1) End user spending in Finland
Sources: Gartner LINE (Finland), Gartner, Elisa analysis
Mobile data
CAGR
+23%
CAGR
+13%
CAGR
+13%
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We see further opportunities in all three strategic focus areas
Strategy execution
9
Build value on data
Accelerate digital service business
Improve performance through customer
intimacy and operational excellence
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Our telecom revenue is growing despite declining interconnection fees
10
2014 2015 LTM
Strategy execution
447 460 452
CAGR
+2%
Telecom services, CAGR
Telecom services, EURm Devices, interconnection and visitor roaming, EURm
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1Q14 1Q15 1Q16 3Q16
Mobile data revenue, EURm
Mobile voice revenue, EURm
2G 3G 4G
Mobile data is the main growth driver... Strategy execution
11
Mobile data revenue exceeding voice
Value capture works for higher speeds
2G-4G avg. ARPU, EUR / subscriber
+95%
+25%
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3Q15 3Q16 Slow subscriptions (≤21Mbit/s)
Fast 4G subscriptions (>21Mbit/s)
…with good upgrade potential Strategy execution
12
4G subscriptions base developing quickly Continuing upsell of fast 4G subscriptions
Upgrade potential
63%
+57%
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Data networks is the base for digital services
13
2014 2015 LTM
Corporate data networks connections
LAN & WLAN connections
2014 2015 LTM
Security services revenue EURm
Growth in LAN, WLAN and
data networks
Cybersecurity fuels growth
of security services
2014 2015 LTM
% of <10Mbit/s connections
% of >10Mbit/s connections
Demand for higher
bandwidth
Strategy execution
CAGR
+6%
CAGR
+7%
CAGR
+13%
100%
0%
50%
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IT sales is driven by customer benefits…
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3Q14 3Q15 3Q16 2014 2015 Q316
Speed, cost and scalability Excellent end user support
2014 2015 Q316
Virtualisation
Strategy execution
CAGR
+32%
CAGR
+8%
CAGR
+7%
IT cloud service customers
(Billed customers)
Outsourced servers
(Units)
Outsourced workstations
(Units)
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…and we are well positioned for the future
15
0 % 20 % 40 % 60 % 80 % 100 %
Elisa
HP
IBM
Fujitsu
Atea
CGI
Capgemini
Tieto
Enfo
Digia
Isoworks
Accenture
Atos
Likely Neutral Unlikely
Strategy execution
Source: Into/Lead: Corporate Image Survey: IT service companies Finland 2016 (05/2016)
Q: Consideration as co-operation partner in the future
Elisa is considered the most likely partner in the future.
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2014 2015 LTM
136 134 134
Cloud is the fastest-growing IT service… Strategy execution
16
Faster than market growth in cloud Low-single-digit growth in IT services
CAGR
-5%
2014 2015 LTM
CAGR
+31% CAGR
+3%
Cloud service revenue, EURm IT services, EURm
Digital Service revenue excluding IT, EURm
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Internet of Things
(IoT) solutions
Experimenting to find scalable
IoT concepts for digitalisation
of industry.
Digital customer
engagement
Expanding existing customer
care solutions business to
digital customer care.
…and we have a portfolio of other digital services in growth areas
Strategy execution
17
Videoconferencing
services
Re-focusing international video
services business for improved
profitability and growth.
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Our continuous improvement is visible in customer-facing operations…
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2014 2015 LTM 3Q14 3Q15 3Q16
Complaints Automated orders
2014 2015 LTM
Customer care contacts
Strategy execution
CAGR
-33%
CAGR
-15%
CAGR
+3% CAGR
+7%
Number of complaints Contacts Automated orders
(index: 3Q14 = 100)
Subscribers
(index: 1Q14 = 100)
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…and in back office efficiency
19
2014 2015 LTM
50%
68% 71%
2014 2015 LTM
Workstations per person Online contacts
2014 2015 LTM
Servers per person
Strategy execution
CAGR
+8% CAGR
+9%
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Management priorities
Fostering growth and profitability
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Build value on data Upgrade to 4G
Accelerate digital service business Expand IT and
Find traction with new digital services
Improve performance through customer
intimacy and operational excellence Focus on online and automation
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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.
22
Elisa CMD 27 October 2016