Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — SanomaWSOY — Shareholder Meeting (April 2002)
34 slides from Sanoma Oyj's shareholder meeting presentation, Apr 9, 2002
Slide 1: Taking SanomaWSOY forward
Taking SanomaWSOY forward Hannu Syrjänen President & COO Annual General Meeting April 9, 2002 Finlandia Hall
Slide 2: Group structure
2 Group structure Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 3: Result for 2001
Result for 2001 £3 SanomaWsoyY
Slide 4: 2001 in brief
4 2001 in brief • Changes in operating environment: - economic uncertainty and slow-down in economic growth - effects of September 11th - clear decline in media advertising • Acquisition of CIG • Founding of Sanoma Magazines (October 1) • Convertible capital notes – changes in balance sheet structur
Slide 5: SanomaWSOY Group
5 SanomaWSOY Group Net sales: € 1,730 million SanomaWSOY Oyj Personnel: 12 077 Sanoma Sanoma Werner SWelcom Oy Rautakirja Oyj Söderström Magazines B.V. Osakeyhtiö Osakeyhtiö Net sales: MEUR 986.2* Net sales: MEUR 84.9 Net sales: MEUR 459.3 Net sales: MEUR 696.5 Net sales: MEUR 211.0 Personnel: 403 P
Slide 6: SanomaWSOY Group
6 SanomaWSOY Group NET SALES, € million OPERATING PROFIT, € million 2000 120 1800 1730.0 1600 100 1447.8 1400 1320.6 80 96.5 1200 84.0 1000 60 71.7 800 40 600 400 20 200 0 0 1999 2000 2001 1999 2000 2001 Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 7: SanomaWSOY Group (by quarter)
7 SanomaWSOY Group (by quarter) NET SALES, € million OPERATING PROFIT, € million 700 652.6 60 50.9 600 50 2000 2001 500 40 2000 2001 400 361.4 362.2 353.8 30 300 345.5 407.4 20 17.5 349.0 15.4 200 345.9 12.7 23.6 20.7 26.6 10 100 13.1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2
Slide 8: Key indicators
8 Key indicators € million 31.12.2001 31.12.2000 Change,% Net sales 1,730.0 1,447.8 19.5 EBITDA 206.8 169.8 21.8 % net sales 12.0 11.7 Operating profit before goodwill amortisation 130.2 103.1 26.3 % net sales 7.5 7.1 Operating profit 96.5 84.0 14.9 % net sales 5.6 5.8 Balance sheet total 3,053.1 1,
Slide 9: Group income statement
9 Group income statement 1-12/2001 € million 31.12.2001 31.12.2000 Change,% Net sales 1,730.0 1,447.8 19.5 Other operating income and change in inventories 45.2 37.1 21.8 Share of result of associated companies 5.5 6.4 -14.1 Operating expenses 1,684.2 1 407.3 19.7 Operating profit 96.5 84.0 14.9 Fin
Slide 10: Group balance sheet
10 Group balance sheet € million 31.12.2001 31.12.2000 Change,% Non-current assets, total 2,188.2 827.4 164.5 Current assets, total 864.8 611.9 41.3 Shareholders’ equity, total 1,019.7 829.9 22.9 Minority interest 122.3 112.9 8.4 Statutory provisions 8.1 2.3 246.1 Liabilities, total 1,903.0 494.2 28
Slide 11: Indicators
11 Indicators 31.12.2001 31.12.2000 31.12.1999 Net sales growth, % 19.5 9.6 5.5 Return on equity, % (ROE) 6.7 10.7 9.3 Return on investment, % (ROI) 8.5 13.8 12.5 Equity ratio¹, % 38.6 67.9 71.0 Operating profit, % of net sales 5.6 5.8 5.4 Average 2002-2005 target for EBIT margin is 9% Equity/share,
Slide 12: Investing in the future
12 Investing in the future € million 31.12.2001 31.12.2000 31.12.1999 Gross investments 1,473.9 168.4 279.7 Goodwill amortisation 33.7 19.1 Research and development costs (booked as expenses) 17.7 23.8 11.0 Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 13: Development of the divisions
Development of the divisions
Slide 14: Advertising sales revenue in Finland 1/2
Advertising sales revenue 14 in Finland 1/2 Total Market € thousand 1-12/2001 Change, % NEWSPAPERS 544,194 -6.6 Aamulehti 38,441 -5 Helsingin Sanomat 150,501 -11 Ilta-Sanomat 12,645 -5 Iltalehti 11,786 2 Kauppalehti 20,906 -6 Taloussanomat 5,241 5 Turun Sanomat 36,008 -5 KÄRKIMEDIA * 93,932 4 Source
Slide 15: Advertising sales revenue in Finland 2/2
Advertising sales revenue 15 in Finland 2/2 Total Market € thousand 1-12/2001 Change, % MAGAZINES 137,429 -3.4 TELEVISION 192,172 -9 RADIO ADVERTISING 34,023 5.3 OUTDOOR ADVERTISING 32,528 -3.1 INTERNET 7,708 -8.6 FILM ADVERTISING 1,908 10.3 Sources: Gallup Mainostieto Y:/Kalvot/HS02/yhtiökokous 090
Slide 16: Magazine advertising in Europe
16 Magazine advertising in Europe % of total Change 2000-2001,% THE NETHERLANDS 21.0 -8.0 CZECH REPUBLIC 20.1 3.4 FINLAND 17.7 -3.4 BELGIUM 14.1 7.3 HUNGARY 13.4 12.1 Sources: * Zenithmedia forecasts, Zenithmedia statistics, Information from Finland is from Gallup-Mainostieto Y:/Kalvot/HS02/yhtiökok
Slide 17: Sanoma Division
17 Sanoma Division • Net sales remained at 2000 levels 500 459.3 458.2 • Operating profit declined despite a 450 number of cost-saving measures 400 • Helsingin Sanomat’s circulation 350 began to rise towards the end of the Net sales year 300 Operating profit • Ilta-Sanomat (70 years) made a 250 reco
Slide 18: Sanoma Magazines Division
18 Sanoma Magazines Division NET SALES, € million OPERATING PROFIT, € million 300 35 275.6 30.9 30 250 2000 2001 2000 2001 25 200 20 150 15 100 10 6.2 5.1 50 39.2 41.7 37.7 5 3.5 3.5 0.6 1.0 1.0 39.5 39.3 35.8 45.3 0 0 Q4: CIG included Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 19: Sanoma Magazines Division
19 Sanoma Magazines Division • Sanoma Uitgevers’ (The Netherlands) net sales increased sightly: especially women’s titles, direct marketer Geomatic International and film distributor RCV Entertainment performed well. • Sanoma Magazines Finland’s net sales increased (growth of circulation and adverti
Slide 20: SWelcom Division
20 SWelcom Division • Net sales rose, in particular HTV’s 110 broadband services did well 90 84.9 • Operating loss was contributed by 78.5 programming costs at Nelonen, 70 goodwill amortisation and Net sales investments in digital TV Operating profit 50 • Nelonen’s market share rose (in terms of adv
Slide 21: WSOY Division
21 WSOY Division • Downturn impacted book sales at the 250 end of the year, Christmas season 211.0 203.4 was brisk but short. 200 • Operating profit suffered from expenditure on electronic publishing Net sales and the weak development of the 150 Operating profit market for IT-titles particularly in
Slide 22: Rautakirja Division
22 Rautakirja Division • Net sales developed well across all 800 696.5 businesses, Rautakirja continued to 700 644.6 expand in Baltic countries. • Operating profit improved in press 600 distribution, bookstores, and 500 Net sales restaurants. Sale of Narvesen shares Operating profit contributed high
Slide 23: Net sales
23 Net sales Net sales outside Finland, % 1999-2001 2,000 25 20 1,500 15 1,000 10 500 5 0 0 1999 2000 2001 Net sales Net sales outside Finland Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 24: Key strategic objectives
Key strategic objectives £3 SanomaWsoyY
Slide 25: Our Key Strategic Objectives 1/2
25 Our Key Strategic Objectives 1/2 • To build a balanced portfolio, both in terms of businesses and markets • To be a market leader in our chosen markets and business areas • To build at least two strong international business areas • To be a leading European magazine publisher • To develop profita
Slide 26: Our Key Strategic Objectives 2/2
26 Our Key Strategic Objectives 2/2 • To increase the profitability of our present businesses and improve efficiency, for example through the use of information technology • To divest non-core assets and businesses • To promote excellent management practices and ensure that we have the ongoing suppo
Slide 27: Financial targets
Financial targets £3 SanomaWsoyY
Slide 28: Population in SanomaWSOY's market areas
Population in SanomaWSOY’s 28 market areas 8.9 milllion 5.2 million 4.5 million 144.7 million Activities in 15 European countries, as well as in Poland and Russia 59.5 million 1.4 million through associated 5.4 million 2.4 million companies. 3.7 million 10.3 million 15.9 million 5.4 million 10.2 mil
Slide 29: Margins by Divisions
29 Margins by Divisions Operating profit (EBIT) of net sales, % 1999 2000 2001 average 2002–2005 target Sanoma 11.1 12.2 9.4 12.5 Sanoma Magazines 3.5* 6.4* 10.6 9.0 SWelcom -33.1 -21.3 -28.8 0.0 WSOY 11.1 9.0 8.6 12.5 Rautakirja 5.7 5.6 6.1 5.5 GROUP 5.4 5.8 5.6 9.0 *Includes only Sanoma Magazines
Slide 30: Outlook for 2002
30 Outlook for 2002 • SanomaWSOY’s operating profit and net sales are expected to improve significantly during 2002 as the net sales and operating profit generated by the businesses acquired from VNU will be included for the full year instead of only one quarter. • Net sales are projected to rise to
Slide 31: SanomaWSOY tomorrow
SanomaWSOY tomorrow £3 SanomaWsoyY
Slide 32: Key challenges for 2002
32 Key challenges for 2002 • Improve profitability in all businesses • Use tighly all growth possibilities • Divest non-core assets • Lighten the balance sheet • Ensure Sanoma Magazines integration Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 33: SanomaWSOY tomorrow
33 SanomaWSOY tomorrow • Leading in chosen markets • A leading European magazine publisher • Distribution together with publishing adds value • Has 2-3 international business areas • More focused in its businesses • Very profitable • Very target oriented Y:/Kalvot/HS02/yhtiökokous 0904 9.4.2002
Slide 34: SanomaWSOY - Committed to future
SanomaWSOY - Committed to future