Elisa (ELISA) CMD 2025 summary

Updated strategy and financial targets

• Revenue and EBITDA growth targets have doubled to over 4% CAGR for the midterm, with strict CapEx discipline at or below 12% of sales and a continued focus on profitable growth.

• International Software Services (ISS) is now a separate segment, targeting 25%+ EBITDA and 20% ROCE, with double-digit organic growth and a focus on operational intelligence software.

• Balance sheet targets include net debt/EBITDA of 1.5–2x, equity ratio above 35%, and a dividend policy with 11 consecutive years of increases and an 80-100% payout ratio.

• Growth targets are based on organic growth, excluding M&A, and are considered realistic and achievable in the near term.

• CapEx allocation remains balanced between mobile, fiber, and IT, with no major spikes expected as IT simplification is a multi-year, stepwise process.

Key growth areas and business developments

• 5G and fiber are core growth drivers, with 5G penetration below 50% and significant upsell potential; 5.5G, mobile value-added services, and digital security are expected to further boost ARPU and revenue.

• Home services expansion includes AI-driven energy storage and modular home security, leveraging cross-sales and a strong brand to deepen customer relationships and reduce churn.

• Corporate IT and cybersecurity are outperforming the market, with AI and automation driving differentiation and profitability, especially in capital-light, managed services.

• ISS (Elisa Industriq) focuses on geographical expansion in Europe and the US, increasing recurring revenues, and scaling distributed energy storage internationally.

• Service revenues comprise 81% of total, with mobile services growing at 5% CAGR and international software services at 15% CAGR (2022-2024).

Operational efficiency and productivity

• Multi-year IT simplification and legacy network ramp-down will unify digital front ends, streamline operations, and enable more autonomous networks.

• AI and automation are deeply embedded across marketing, customer service, network management, and product development, driving both growth and cost efficiency.

• Cost management includes procurement resets, in-sourcing software development, and continuous improvement, with cost savings expected to be sticky and to enhance margins.

• Over 20% growth in data transferred with flat network OPEX, and more than 20% of code in production is AI-generated.

• Productivity gains are reinvested into growth levers, supporting high returns on capital and selective bolt-on M&A in target markets.