Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q1 2009 Earnings Presentation
43 slides from Alma Media Oyj's earnings presentation, May 2009
Slide 1: Alma Media Q1 2009 Roadshow
Alma l Media d Q1 2009 Roadshow Mayy 2009 9 Tuomas IItkonen, T k CFO Rauno Heinonen, IR 1
Slide 2: Newspapers and online media in Finland
Newspapers p p and online media in Finland + online services complementing the printed papers 2
Slide 3: International marketplaces
International marketplaces Finland Other countries Home trading: Home trading: Recruiting: Heavy machinery: Car trading: Heavy machinery: Consumer classifieds: Mascus licence offices. 3 As of 1 April 2009 also in Australia, Canada, Slovak and New Zealand.
Slide 4: Net Sales 2008, MEUR
Net Sales 2008, MEUR Alma Media total Newspapers Kauppalehti-Group Marketplaces 341.2 MEUR 236.7 MEUR 73.5 MEUR 34.3 MEUR Aamulehti 37.2% 37 2% (88m€) Etuovi.com 45.8% (16m€) N Newspapers 68 68.1% 1% (232 (232m€) €) K Kauppalehti l hti 61 61.5% 5% (46 (46m€) €) monster 22.1% (8m€) KL-Group 21.5% (73
Slide 5: Highlights Q1 2009
Highlights Q1 2009 • Weak quarter due to exceptionally difficult market conditions. • Key financials Q1 2009 – Comparable net sales declined 9 % – Advertising sales fell 17 % Picture size 63 x 132mm • Kauppalehti’s and Marketplaces net sales took the worst hit. 100dpi • Online advertising net sales
Slide 6: Key figures Q1 2009, MEUR
Key figures Q1 2009, MEUR Net sales, MEUR EBIT, MEUR 100 16 0.6 90 14 14.4 89.3 -9.0% 80 86.6 0.0 84.0 12 81.4 0.0 12.2 70 76.4 11.6 10 00 0.0 60 9.5 -35.2% 8 50 7.5 6 40 4 30 20 2 10 0 -1.0 0 -2 2 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Onetime items 6
Slide 7: Strategy: Investing in hybrid media
S Strategy: Investing in hybrid y media
Slide 8: Company statements
Company statements • To promote individual freedom Mission and wellbeing g z Freedom and pluralism of Values journalism z Team play z The winning team in newspaper Vision and online media • Chaining operations Strategy • Constant improvement and renewal • Internationalisation • Mergers & Acquisition
Slide 9: Implementing the strategy
Implementing the strategy Constant renewal Chaining Product development Content sharing Picture size Content development Cross-promotion p 63 x 132mm 100dpi Internationalisation M&A Classified as spearhead Classified in CE Europe City24 & Mascus Finnish consolidation 9
Slide 10: Online development areas
Online development p areas ONLINE MEDIA SEARCH SERVICES N News, editorial di i l content S Search h and d use off iinformation f i - Develop print+online hybrid - Partnership strategy - Create or acquire new - Company search Picture size th thematic ti services i 63 x 132mm 100dpi USER MEDIA INFORMA
Slide 11: Case: Iltalehti, a pioneer in hybrid media
Case: Iltalehti Iltalehti, a pioneer in hybrid media • The market for afternoon papers is in a downward trend – Circulation of the p printed p paper p decreases byy 5 to 6% annuallyy – Simultaneously, online services have strengthened significantly • The trend is driven by the swift and strong chang
Slide 12: Iltalehti + Iltalehti.fi = a growing hybrid medium
Iltalehti + Iltalehti.fi = a growing hybrid medium Daily reach with the combination 000 readers 1600 1476 1400 1274 1178 1200 1022 1000 32 Coverage, % 800 28 6 600 26 23 400 200 0 2005 2006 2007 2008 Source: TNS Atlas Jan-Sep 2005, 2006, 2007 and 2008, TNS Gallup Oy. Population +10 yrs 12
Slide 13: Case Kauppalehti
Case Kauppalehti pp Share of Source of Focus on To do revenue revenue eTrade, licensing Business information Growth Develop new products 13% and usage of KL Kauppalehti ePortti Balance Consulting and concepts business info Boost sales N New services i (Company search) products enables Web media Adve
Slide 14: Media Markets in Finland Q1 2009
Media Markets in Finland Q1 2009 14
Slide 15: Dramatic fall in advertising market continued
Dramatic fall in advertising market continued 40 % 30 % 20 % 10 % 0% -10 % -20 % -30 % Q1/08 Q2/08 Q3/08 Q4/08 1/09 2/09 3/09 Total advertising market change, % Newspaper advertising market change, % Online advertising market change, % 15 Source: TNS Media Intelligence. NB. Consumer classifieds not
Slide 16: Advertising sales development
Advertising sales development Total market Nov 2008 – Feb 2009 Market value change, Nov 2008 Dec 2008 Jan 2009 Feb 2009 % Newspapers -11.6 -16.6 -22.8 -24.5 Magazines -12.2 12 2 -2.2 22 -13.7 13 7 -21.6 21 6 Television 2.7 -19.2 -11.1 -20.5 Radio 60 6.0 27 4 27.4 -2.1 21 26 2.6 Internet 16.3 3.0 1.0
Slide 17: Segment reviews Q1 2009
Segment reviews Q1 2009 17
Slide 18: Newspapers Q1 2009
Newspapers Q1 2009 • Net sales declined by 6 % to 53.9 (57.3) MEUR – Advertising sales fell to 24.4 24 4 MEUR MEUR, -14.1 -14 1 % less than comparable period • Sales declined worst in Aamulehti and in Satakunnan Kansa • Good development in the online sales: as an example Picture size Iltalehti.fi ad
Slide 19: Kauppalehti Group Q1 2009
Kauppalehti Group Q1 2009 • Net sales down 12.2 % to 16.2 (18.5) MEUR – Advertisingg sales of Kauppalehti pp Group p declined byy 25.6 % along with the market – Kauppalehti Group level circulation sales declined slightly mostly due to customer magazine sales decline Picture size – Net sales from onl
Slide 20: Marketplaces Q1 2009
Marketplaces Q1 2009 • Net sales down 20.7 % to 7.2 (9.1) MEUR – Exceptionally weak market for job advertising in Finland and houses advertising in all operating countries – In the falling market Monster.fi, Etuovi.com and Picture size Autotalli.com have increased their market share 63 x 132mm – Mas
Slide 21: Financials Q1 2009
Financials Q1 2009 21
Slide 22: Net Sales Q1/2009, MEUR
Net Sales Q1/2009, MEUR Alma Media total Newspapers Kauppalehti-Group Marketplaces 76.4 MEUR 53.9 MEUR 16.2 MEUR 7.2 MEUR Aamulehti 36.5% 36 5% (19.7m€) (19 7m€) Etuovi.com 44.9% (3.2m€) N Newspapers 69 69.0% 0% (52 (52.8m€) 8 €) K Kauppalehti l hti 61 61.4% 4% (10 (10.2m€) 2 €) monster 21.6% (1.6m€
Slide 23: Net Sales change Q1/2009 vs Q1/2008, MEUR
Net Sales change Q1/2009 vs Q1/2008, MEUR Alma Media total Newspapers Kauppalehti-Group Marketplaces -7.5 MEUR (-9.0 %) -3.5 MEUR (-6.0 %) -2.3 MEUR (-12.2 %) -1.9 MEUR (-20.7 %) 1.0 0.5 0.0 0.20 0.5 -0.2 0.0 0.00 0.0 -0.4 -0.5 -0.5 -0.20 -0.6 MEUR -1.0 MEUR MEUR MEUR -1.0 -0.8 -1.5 -0.40 M 15 -1.5
Slide 24: Net sales change by type
Net sales change by type Circulation, MEUR Advertising, MEUR 10 1.0 60 6.0 4.0 0.8 2.0 +0.3% 0 3% -17.0% 0.6 0.0 +1.3% 0.4 -2.0 +0.8% -4.0 0.2 -6.0 0.0 -8.0 80 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 24
Slide 25: EBIT by segment
EBIT by segment Newspapers, MEUR Kauppalehti Group, MEUR 14.0 3.5 12.0 3.0 +12.2 10.0 10 5 10.5 2.5 -8.8% 8.0 2.0 -26.2% 2.0 6.0 6.9 1.5 4.0 1.0 -67.0% 2.0 0.5 0.6 00 0.0 00 0.0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 25
Slide 26: EBIT by segment
EBIT by segment Marketplaces, MEUR Other, MEUR 1.5 0.0 1.0 -0.5 -0.8 0.5 -1.0 -181.3% -118.0% 0.0 -0.2 -1.5 05 -0.5 -1.0 -2.1 -2.0 -1.0 -1 5 -1.5 -2 5 -2.5 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 26
Slide 27: Balance Sheet
Balance Sheet MEUR Mar 2009 Dec 2008 Intangibles and goodwill 44.9 45.3 Tangibles 34.3 35.2 Associated companies 30.3 31.6 Inventory 1.3 1.5 Receivables 38.0 40.0 C h Cash 31 8 31.8 13 3 13.3 Assets 180.7 166.9 Equity 70.3 88.5 Reserves-obligatory 12 1.2 11 1.1 Pension liabilities 3.5 3.7 Ib debt 35
Slide 28: Cash flow from operating activities
Cash flow from operating activities 35.0 30.0 28 6 28.6 26.8 25.6 25.0 20 0 20.0 MEUR 15.0 10 0 10.0 5.0 00 0.0 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Tax return +1,0 MEUR Tax return +3,8 MEUR 28
Slide 29: Cash flow and investments
Cash flow and investments 30 0.5 26.8 25.6 24.8 0.0 25 23.9 -0.5 20 -1.0 -0.8 UR MEUR MEU 15 -1.5 -2.0 10 25 -2.5 5 -3.0 -2.9 0 -3.5 Q1 08 Q1 09 Q1 08 Q1 09 from operating activities gross investments before financing activities proceeds from sales of assets 29
Slide 30: Net debt, MEUR
Net debt,, MEUR 30 25.8 23.9 25 19.8 20 15 12.9 10 5.8 3.8 MEUR R 5 0 -5 -10 -15 -20 -25 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Dividend Dividend Dividend 20.3.07 48.5 MEUR 27.3.08 67.2 MEUR 25.3.09 22.4 MEUR 30
Slide 31: Key ratios in Q1 2009
O ti One time it items Key ratios in Q1 2009 Equity ratio, % Gearing, % ROE% ROI% 70 10 60 50 6.5 5.3 50.8 60 57.2 40.0 5 50 40 50 45.8 0 40 30 40 -5 30 25.6 20.6 30 20 -10 20 20 10 10 -15 10 0 -20 0 0 Q4 08 Q1 09 Q4 08 Q1 09 Q1 08 Q1 09 Q1 08 Q1 09 31 Q1 ROI% and ROE% have been annualized
Slide 32: Outlook for 2009
Outlook for 2009 32
Slide 33: Advertisers overreact to economic cycles
Advertisers overreact to economic cycles 15 % 10 % 5% 0% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 -5 % -10 % -15 15 % GDP Advertising, total Advertising, newspapers Sources: Statistics Finland, Advisory Board
Slide 34: Print circulation and online media trends 2009
Print circulation and online media trends 2009 Business daily Regional and Afternoon l local l newspapers t bl id tabloids Volume of print copies Number of online visitors 34
Slide 35: Sales and expenses break down Q1 2009, MEUR
Sales and expenses break down Q1 2009, MEUR Sales Advertising sales (45,7%) Sensitivity analysis Circulation sales (43,0%) 76,4 Factor Change Impact Other sales ((11,3%)) (Full year impact) (%-point) (% point) on EBIT, MEUR Media advertising +1 1,4 Expenses Wages and salaries +1 -1,2 Content (31,5%)
Slide 36: Sales and expenses break down Q1 2009, MEUR
Sales and expenses break down Q1 2009, MEUR Sales Advertising sales (45,7%) Sensitivity analysis Circulation sales (43,0%) 76,4 Factor Change Impact Other sales ((11,3%)) (Full year impact) (%-point) (% point) on EBIT, MEUR Media advertising +1 1,4 Expenses Wages and salaries +1 -1,2 Materials (6,3%
Slide 37: Outlook for 2009
Outlook for 2009 • Alma Media expects that the comparable net sales and operating profit will be lower than in 2008 due to the decline in media advertising. • In the second quarter, net sales and operating Picture size 63 x 132mm profit f will ll d drop significantly f l in comparison with h 100dpi
Slide 38: Background facts
Background facts 38
Slide 39: Top newspapers in Finland
Top 10 newspapers in Finland Ci l i iin 2007 and Circulation d 2006 6 419 7 91 Helsingin Sanomat 426 117 17 6 531 Ilta-Sanomat 1 86 462 139 165 Aamulehti 138 258 131 150 Iltalehti 1 3 3 007 112 419 Turun Sanomat 112 360 86 57 7 Kauppalehti 81 3 3 7 83 960 Maaseudun aaseudu Tulevaisuus u e a suus 83
Slide 40: Online media in Finland
the sixth sense of business tnSiee SUOMEN WEB-SIVUSTOJEN VITKKOLUVUT (WEEKLY SITE RANKINGS) O re e e e nline media in Finland Liity TNS Metrix-mittaukseen INS Gallupin online-mittaus ja yksityisyyden sucia Viikko: Kategoria: | -Kaikki- Site Browsers Browsers% mmp|* + Iltalehti 1688613 “O74 2 + Ilta-
Slide 41: Acquisitions and divestments since 2005
Acquisitions q and divestments since 2005 Kauppalehti 121 Vuodatus.net Kokkolan Sanomat Janakkalan Motors24.ee Objektvision.se Objektvision se Telkku.com Sanomat Bovision.se Tampereen City24.ee ePortti City24.pl Ykkösjakelu (40 %) Rannikkoseutu SBV Acquisitions 2005 2006 2007 2008 2009 Divestments M
Slide 42: Shareholding
% of Shareholding g Largest registered shareholders 30.4.2009 30 4 2009 shares / votes • Alma Media’s AGM convened on March 1. Skandinaviska Enskilda Banken 16.0 11, 2009 2. Oy Herttaässä Ab 13.2 – Agenda included the requests of Oy Herttaässä Ab/Kai Mäkelä 3. Ilkka-Yhtymä Oyj 10.4 – Decisions inclu
Slide 43: Thank You!
Thank You! 43