Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2007)
34 slides from Sanoma Oyj's investor day presentation, Oct 5, 2007
Slide 1: Sanoma Going Digital
Sanoma Going Digital Mikael Pentikäinen President, Sanoma Corporation SanomaWSOY CMD 5 October 2007 Sanoma
Slide 2: Agenda
Agenda • Media continents are moving • Media consumption is changing, newspapers are facing new challenges • Media advertising is changing too • How is Sanoma responding to the change? Sanoma Mikael Pentikäinen | 5/10/2007 | 2
Slide 3: Media Continents Are Moving
Media Continents Are Moving Sanoma
Slide 4: The Change is Driven by the Internet
.. The Change is Driven by the Internet Newspapers Magazines Internet Television Books Radio Sanoma Mikael Pentikäinen | 5/10/2007 | 4
Slide 5: Is This How Media Should Be Perceived?
Is This How Media Should Be Perceived? For Sure This Is Not the Future! Sanoma Mikael Pentikäinen | 5/10/2007 | 5
Slide 6: Media Consumption Is Changing
Media Consumption Is Changing Newspapers Are Facing New Challenges Sanoma
Slide 7: We have talked a lot about changing media consumption
We have talked a lot about changing media Source: Carat 2005 consumption - Source: Pew Research Center 2006, Online papers modestly boost newspaper readership Simultaneous media usage is affecting media habits, but newspapers seem not to be most at risk Source: Universal McCann 2006, The new digital
Slide 8: Rise of User-generated Content is an Opportunity for Sanoma
Rise of User-generated Content is an Opportunity for Sanoma Every fourth European internet user produces content for blogs, web sites and discussion forums (Jupiter, April 2006) • User participation takes different forms – Blogs, wikis, citizen journalism – Virtual communities, networks • Traditiona
Slide 9: Active Discussion Forums at Sanoma's Web Sites
Active Discussion Forums at Sanoma’s Web Sites ILTA-SANOMAT DISCUSSIONS Example of published messages Number of unique HS.fi DISCUSSIONS Number of unique per week visitors to visitors to HS.fi Ilta-Sanomat Example of published messages Reader's voice 9 085 discussion sites discussion sites per week
Slide 10: Users' Pictures Are Published in UL
Users’ Pictures Are Published in UL 100 Printed Commuter Free Sheet and on Web Site Every Day • In less than 2 years UL 100 has received more than 10,000 pictures from its readers • The editorial staff receives dozens of pictures each day - during the most “happening” days the figure is close to a h
Slide 11: Web Gaining Fast, Newspaper Readership Remains Stable
Web Gaining Fast, Newspaper Readership Remains Stable Readers and Web Users 2001–2007 (Jan–Aug) 1200 1000 1200 1000 1100 900 1100 900 1000 800 1000 800 900 '000 lukijaa / kävijää 900 700 '000 lukijaa / kävijää '000 lukijaa / kävijää 800 700 '000 lukijaa / kävijää 800 700 Helsingin HelsinginSanomat S
Slide 12: Sanoma's Total Reach Is Record High
Sanoma’s Total Reach Is Record High Only Partial Overlap with Print and Online Helsingin Sanomat Ilta-Sanomat Daily Daily readers readers Weekly Weekly 1,030,000 829,000 web visitors web visitors 769,000 1,103,000 Taloussanomat Print & Online Print & Online ca. 25% Daily ca. 21% readers Weekly 78,00
Slide 13: The Print Position Can Change…
The Print Position Can Change… Kauppalehti Aamulehti 208,000 316,000 Taloussanomat Iltalehti readers 78,000 Ilta- readers 678,000 readers Sanomat readers Helsingin 829,000 readers Sanomat 1,030,000 readers What will happen… …when we… …go online? Source: KMT Lukija Fall 2006/Spring 2007 Sanoma Mikael
Slide 14: .. as the Battle Shifts to Online
.. as the Battle Shifts to Online Kauppalehti Aamulehti 208 000 316 000 Taloussanomat Iltalehti readers 78 000 Ilta- readers 678 000 readers Sanomat readers Helsingin 829 000 readers Sanomat 1 030 000 readers Aamulehti.fi Kauppalehti 89,488 Online Taloussanomat.fi visitors 231,659 250,618 Iltalehti.
Slide 15: There's Still Catching up to Do in the Online Market
There’s Still Catching up to Do in the Online Market Unique Visitors (1,000) Week 37/2007 > 12 Week 38/2006 months 1. MTV3 1,233 back > 1. MSN.fi 1,425 At the same 2. MSN.fi 1,195 2. MTV3 1,120 time Sanoma’s 3. Ilta-Sanomat 1,103 3. Suomi24 861 4. Iltalehti 1,045 4. Iltalehti 767 relative 5. Suomi24
Slide 16: Media Advertising is Changing Too
Media Advertising is Changing Too Sanoma
Slide 17: Creating Balanced Media Growth
Creating Balanced Media Growth Despite Concerns, Subscribed Newspapers Have Had an Excellent Year; Online Continues Strong Performance EUR 1,000 8/2007 Ch % 1–8/2007 Ch % NEWSPAPERS 51,115 7.3 413,824 5.8 SANOMA SANOMAAD AD SALES SALES (Change MAGAZINES 10,532 2.0 96,756 2.5 (Change1-8/2007 1-8/2007
Slide 18: Finland Still Waiting for the Online Growth Surge
Finland Still Waiting for the Online Growth Surge 800,0 800,0 700,0 700,0 600,0 600,0 500,0 2006 500,0 2006 400,0 2009 400,0 2009 300,0 300,0 200,0 Online share (%) of total media advertising 200,0 2006 2007 2008 2009 100,0 Finland 3,8 % 4,6 % 5,4 % 6,0 % 100,0 Sweden 13,1 % 13,1 % 14,7 % 15,9 % Nor
Slide 19: Does a National Player Stand a Chance?
Does a National Player Stand a Chance? Yes it does, if it succeeds in • Providing local & rich content • Knowing your local customers and serving Or five..? “The Big Four” them well • Generating and driving In the U.S., 10 largest traffic online players get • Offering a diversified about 3/4 of all
Slide 20: How is Sanoma Responding to the Change?
How is Sanoma Responding to the Change? Sanoma
Slide 21: Sanoma's Portfolio
Sanoma’s Portfolio Strong Brands, Print and Online Sanoma Mikael Pentikäinen | 5/10/2007 | 21
Slide 22: Two Elements of Sanoma's Digital Strategy
Two Elements of Sanoma’s Digital Strategy 1. ”Traditional” newspapers increase their reach with their brand-related web sites. Each newspaper brand site has a unique variety of content and of services according to brand qualities and target segment(s). – 24/7 news coverage – Web videos and radio – B
Slide 23: Weekly Visitors at Sanoma's Web Sites
Weekly Visitors at Sanoma's Web Sites Biggest Services 1 000 000 142 900 000 800 000 154 700 000 600 000 500 000 400 000 125 300 000 99 200 000 471 100 000 0 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3
Slide 24: Sanoma's Digital Operations Perform Strongly
Sanoma’s Digital Operations Perform Strongly Revenue Growth of Selected Online Services (Jan–Aug 2007) Ch -% Ilta-Sanomat* 34.6% Taloussanomat** 64.8% Oikotie 33.5% Kuldne Börs 74.1% Huuto.net 37.6% Esmerk 13.0% * Ilta-Sanomat digital revenues exclude here marketplace operations Huuto.net, Keltainen
Slide 25: Marketplaces
Marketplaces • Leading brands of classifieds with over 750,000 weekly net contacts – Oikotie.fi (Apartments, Cars, Jobs, Travel, Education and Office spaces) – Keltainenporssi.fi (Cars, Motor vehicles, Motor supplies, Hobbies) – Huuto.net (Auction) – Hintaseuranta.fi (Product comparison) Source: TNS
Slide 26: Sanoma Digital Speeds up Growth
Sanoma Digital Speeds up Growth • Fast development of new web services for market white spots – Focus on consumers and building a revenue model around a chosen target group: display advertising, direct email, sponsorship – Objective is fast and agile response and action – Explore and experiment, “ki
Slide 27: Sanoma Digital's Viewpoint
Sanoma Digital’s Viewpoint Consumer’s 360° Traditional 360° What user wants TV Radio Magazines Newspapers Internet Sanoma Mikael Pentikäinen | 5/10/2007 | 27
Slide 28: Online Ad Sales Sells Ads for all Sanoma Web Sites
Online Ad Sales Sells Ads for all Sanoma Web Sites Upcoming: Local newspaper web sites Sanoma Mikael Pentikäinen | 5/10/2007 | 28
Slide 29: Sanoma Online Ad Sales
Sanoma Online Ad Sales • Finnish online ad sales market, including classifieds, grew 21.3%* during Jan-Aug 2007 • Growth in Sanoma Online Ad Sales during the respective period was 41%. The figure excludes classified advertising • Growth of Sanoma’s total online advertising revenues, including classi
Slide 30: Tyylitaivas.fi
Tyylitaivas.fi • Virtual community for all those, who are interested in fashion, style, and design • The web site is developed from user perspective: Users act as principal developers and content producers for the site • In addition to display advertising, the web site provides advertisers an opport
Slide 31: Autotaivas.fi
Autotaivas.fi Community for Car Enthusiasts • Users set up teams and compete against each other • Users vote for a winning team and those who collect most points receive an award • Users can also learn about different car models with the help of test drive reports, pictures, and videos uploaded by o
Slide 32: Food Blogging
Food Blogging Sanoma Mikael Pentikäinen | 5/10/2007 | 32
Slide 33: Conclusions
Conclusions • Media is changing – Consumers – Advertising – Role of print • Sanoma is well positioned for the change – Strong brands – Strong growth – Constant development of organisation – Co-operation potential • Despite changing media fundaments, the future looks bright for Sanoma Sanoma Mikael P
Slide 34: Thank you
Thank you [email protected] Tel. +358 9 122 2000 Sanoma