Customer Delight Created by Co-operation

with Supplier and OperatorMarkus Kinnunen and Erja Sankari

2

Elisa Today

€ 1.54 billion (1.55)

revenue

€ 223 million (196)

profit for the period

4.73 million (4,69)

mobile subscriptions, Finland and Estonia

557,400 (557,300)

fixed broadband subcriptions

2,3 millioncustomers

214,000shareholders

4,100Elisa employees

in 55 locations in Finland, and

abroad

€ 191 million (202)

capital expenditure investments

Elisa’s Strategy

Build value on data

Accelerate new services businesses

Improve performance with customer intimacy and

operational excellence

ICT and

online

services

market

Interesting Megatrends in Markets

5

Connected world

Ageing populationUrbanisation

Cybersecurity &

privacy

Important 4G Momentum in January 2014

• Why to invest in fast 4G rollout?

• Similar start as in 3G

• Coverage leadership

• Attract customers to 4G

• How to do it cost effectively?

• 800 MHz license

• Right vendor selection

• Strict end to end process

6

Status 2014 January

LTE coverage Jan 2014

1 000 Base Stations

LTE coverage target Aug 2014

2500 Base Stations

Target 2014 August

• Elisa won C band licence in 800 MHz

auction in Finland making Nokia’s

new 6-pipe LTE radio “FRMC” an

ideal fit

• The challenge was that the FRMC

product was in very early phase of

new product introduction (NPI) phase

• Elisa made it very clear that this was

a very special “must-win case”

The Challenge for Nokia

LT -50%

Solution: Think Differently

From 5 to 300 in shift-40%

Optimized

production

scheduling and

lead-time

Bottleneck

process speed-

up from 130 to

80 minutes

Final production capacity

ramp-up

Tailored processes &

winning mindset in the

whole Nokia Supply

Chain!

Direct daily

communication

channels

established

Express

material

inbound from

Nokia suppliers

War room with

key Nokia

Suppliers

Dedicated

factory team to

Elisa

Elisa’s Request Was Completed 2 Weeks Ahead of the

Schedule

0

200

400

600

800

1000

1200

1400

1600

P01 P02 P03 P04 P05 P06

FRMC LTE 800 Radio Deliveries vs. Customer Request

Customer request(cumulative)

Actual deliveries(cumulative)

Target

achievedDeadline

Jan Feb Mar Apr May June

0

20

40

60

80

100

120

140

160

P2 P3 P4 P5 P6 P7

Tim

e in

min

ute

s

Filter Tuning Time Reduction

Feb Mar Apr May June July

Collaboration Makes Things Happen

• Elisa visited the Nokia factory several times to underline the importance

• Nokia made solid promises in face to face meetings

• Nokia worked around the clock to meet the promises

• Global material deliveries to Oulu factory

• Streamline assembling process by factory personnel and management

10Customer perceived value index (1-5)

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

3.804 avainkysymystä

Kaikki kysymykset

4 Key Questions

All Questions

3,56

3,66

Why we succeeded?

• Common understanding

• Collaboration

• Strong commitment

• Ability to move fast

• Communications

11Customer perceived value index (1-5)

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

3.804 avainkysymystä

Kaikki kysymykset

4 Key Questions

All Questions

3,56

3,66

Thanks Erja and Team Nokia at the Oulu Factory!

12

4G coverage in Finland in August 2014Target achieved!

2500 Base Stations live in Jul 2014.

Thank you!