Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (June 2012)
62 slides from Sanoma Oyj's investor day presentation, Jun 14, 2012
Slide 1: Appendix – Capital Markets Day 2012
Appendix Capital Markets Day 2012
Slide 2: Content
Content • Macroeconomic and media market data (slide 3-) • Sanoma market position (slide 14-) • Online business (slide 22-) • Organisational structure and SBS partnership structures (slide 35-) • Financials (slide 38-) • Sanoma ownership structure (slide 60-) Copyright © Sanoma Corporation | Appendi
Slide 3: Macroeconomic and media market data
Macroeconomic and media market data
Slide 4: Macroeconomic indicators
Macroeconomic indicators GDP growth (vs. same period last year) * 8 6 4.9 4 2 1.7 0.5 0 -0.7 -2 -1.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 FIN BEL NL RUS HUN Consumer confidence ** 40 20 9.9 0 -5.0 -12.0 -20 -17.1 -40 -45.9 -60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2011 2012
Slide 5: GDP and advertising – long-term trends
GDP and advertising – long-term trends Netherlands 20 15 10 5 0 -5 -10 -15 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Advertising (% change p.a.) Real GDP (% change p.a.) Belgium 25 20 15 10 5 0 -5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Advertising (% change p.a.) Real GD
Slide 6: GDP and advertising – long-term trends
GDP and advertising – long-term trends Finland 10 5 0 -5 -10 -15 -20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Advertising (% change p.a.) Real GDP (% change p.a.) Russia 80 60 40 20 0 -20 -40 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Advertising (% change p.a.) Real GDP (%
Slide 7: GDP and advertising – long-term trends
GDP and advertising – long-term trends Hungary 40 20 0 -20 -40 -60 -80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Advertising (% change p.a.) Real GDP (% change p.a.) Source: GDP: EIU, Advertising: ZenithOptimedia Copyright © Sanoma Corporation | Appendix 14 June 2012 7
Slide 8: Media advertising spend – Netherlands
Media advertising spend – Netherlands Net advertising spend development – Dutch media market (EUR million) 1,600 1,400 1,200 1,000 800 600 400 200 0 2008 2009 2010 2011 Newspapers Magazines TV Radio Cinema Outdoor Internet Source: ZenithOptimedia Copyright © Sanoma Corporation | Appendix 14 June 201
Slide 9: Media advertising spend – Belgium
Media advertising spend – Belgium Gross advertising spend development – Belgium media market (EUR million) 1,600 1,400 1,200 1,000 800 600 400 200 0 2008 2009 2010 2011 Newspapers Magazines TV Radio Cinema Outdoor Internet Source: ZenithOptimedia Copyright © Sanoma Corporation | Appendix 14 June 201
Slide 10: Media advertising spend – Finland
Media advertising spend – Finland Net advertising spend development – Finnish media market (EUR million) 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 Newspapers Magazines TV Radio Cinema Outdoor Internet Source: ZenithOptimedia Copyright © Sanoma Corporation | Appendix 14 June 2012 10
Slide 11: Media advertising spend – Russia
Media advertising spend – Russia Net advertising spend development – Russian media market (RUB million) 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2008 2009 2010 2011 Newspapers Magazines TV Radio Cinema/Indoor Outdoor Internet Source: ZenithOptimedia Copyright © Sanoma Corporation | Appe
Slide 12: Media advertising spend – Hungary
Media advertising spend – Hungary Net advertising spend development – Hungarian media market (HUF million) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2008 2009 2010 2011 Newspapers Magazines TV Radio Cinema Outdoor Internet Source: ZenithOptimedia Copyright © Sanoma Corporation | Appe
Slide 13: Media Use – Netherlands and Finland
Media Use – Netherlands and Finland Time consumption on media – Dutch and Finnish media market Netherlands Finland Population 20-65 years old Population 15-69 years old Min/day CAGR Min/day CAGR +2.0% +0.6% 450 450 407 414 403 405 412 400 383 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50
Slide 14: Sanoma market position
§3Sanoma Sanoma market position
Slide 15: Market position - Netherlands and Finland
Market position - Netherlands and Finland Net sales of main media companies (in EUR million) Netherlands • Market leader in consumer magazines – Circulation market share of ~50% Sanoma – Ad market share of ~48% Telegraaf Media Groep • Market leader in online ad market Wegener – Ad market share ~15%
Slide 16: Market position – Belgium and Russia
Market position – Belgium and Russia Net sales of main media companies (in EUR million) Belgium • Market leader in magazines – Circulation market share of ~38% 0 100 200 300 400 500 600 – Ad market share of ~31% Roularta Rossel • Online ad market Corelio Media – Ad market share ~2% Vlaamse Media 6 •
Slide 17: Market position – Netherlands
Market position – Netherlands Market leading brands in a.o. women, kids, home deco, automotive, news, directories and comparison • 90% reach of Dutch population 13+ • 70 consumer magazines • 3 TV channels • >100 websites • large app portfolio Copyright © Sanoma Corporation | Appendix 14 June 2012 17
Slide 18: Market position – Finland
Market position – Finland Market leading brands in a.o. news, women, kids, home deco, automotive, classified and auction • 88% reach of Finnish population 15+ • 6 newspapers • 2 free sheets • Over 40 consumer magazines • 8 TV channels • 6 radio channels • >100 websites • Magazine readership >3 milli
Slide 19: Market position – Belgium
Market position – Belgium 8,629 46,951,839 8,866,411 11,353 8,155 Twitter Magazines Happy consumers Radio TV followers sold commercials commercials 85,000 App 186,380 1,365,300 Facebook downloads Displays in Posters in fans 33,313 bookstores shops 705,050 Event visitors Copyright © Sanoma Corporatio
Slide 20: Market position – Russia
Market position – Russia Women’s & Men’s titles • > 60 print titles Travel & Youth & fashion titles (consumer geographic parenting titles magazines, titles newspapers, custom editions) • 11.7 m readership = ~19% of Russian population 16+ • 95% readership growth in 5 years • 52% of Russian glossies r
Slide 21: Market position matrix – Consumer media
Market position matrix – Consumer media News: Magazines: Online: TV: TV: market position & market position & market position & market share online commercial viewing market positions & Country share ad spend share ad spend ad spend share advertising share Finland #1, 18% #1, 25% 37% #2, 35% #2, 34%
Slide 22: Online business
§3Sanoma Online business
Slide 23: Main online pricing models
Main online pricing models • Business model – who is paying Model Driver Examples CPS Customer’s sales Commissions – Businesses/advertisers – Private persons/users • Pricing model – what is chargeable CPL & CPA Number of Email & call leads or leads/actions sent requests (=actions) – Classified ads t
Slide 24: Sanoma is #1 online player in Finland
Sanoma is #1 online player in Finland Sanoma’s leading online services TNS weekly visitors – TOP 20 • Iltasanomat.fi is #2 in Finland in terms of 1 xxx 2 792 252 visitors 2 Ilta-Sanomat 2 347 032 • 6 positions among top 20 most visited 3 xxx 1 794 221 websites 4 Helsingin Sanomat 1 479 329 • Sanoma
Slide 25: Market leader in the selected digital domains in Finland
Market leader in the selected digital domains in Finland 1 1 1 2 1 2 1-2 1 3 1-2 1-2 Source: TNS Gallup week 22 Copyright © Sanoma Corporation | Appendix 14 June 2012 25
Slide 26: Oikotie Real Estate
Oikotie Real Estate Finland Business model Front page • Classified real estate advertising site • Main revenue sources – Listing fees from private customers – Subscription packages for realtors (CPC or per CPM ad) – Display advertising Weekly statistics (week 22/2012) C • Unique visitors : 412 k P •
Slide 27: Oikotie Jobs
Oikotie Jobs Finland Business model Front page • Classified job advertising site • Main revenue sources CPM – Prepaid job ad packages – Ad volume based contracts – Other advertising products (e.g. employer branding, display ads) C P M Weekly statistics (week 22/2012) • Unique visitors : 85 k Listing
Slide 28: Huuto.net
Huuto.net Finland Business model Category front page • Online auction • Main revenue sources – Display advertising – Listing upgrade fees CPM – Commissions Weekly statistics (week 22/2012) • Unique visitors : 464 k • Pageviews : 28.5 million CPC C P M Listing upgrade fees Source: TNS Gallup week 22
Slide 29: Unique visitors weekly
Unique visitors weekly TOP 5 Sanoma Finnish sites 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 19202122232425262728293031323334353637383940414243444546474849505152 1 2 3 4 5 6 7 8 9 101112131415161718 2011 2012 Iltasanomat.fi HS.fi Huuto.net Oikotie.fi Taloussanomat.fi Source: TNS Gal
Slide 30: Market positions in Netherlands
Market positions in Netherlands Womens cluster 1 1 1 2 3 Copyright © Sanoma Corporation | Appendix 14 June 2012 30
Slide 31: Startpagina.nl
Startpagina.nl Netherlands Business model Front page • Offers several directories of interesting links for users • Main revenue sources – Advertisers pay a fee per click (CPC) Google – Display advertising (CPM) – Implementation of Google search engine: Startpagina receives a revenue share on the cli
Slide 32: Nu.nl
Nu.nl Netherlands Business model Front page • The leading news site in the Netherlands • Main revenue sources CPM – Display advertising – Rich media – Branded content Monthly statistics (April 2012) • Unique visitors : 5.5 million on web, 4.1 million on mobile • Pageviews : 320 million on web, 486 m
Slide 33: Kieskeurig.nl
Kieskeurig.nl Netherlands Business model Front page • Product comparison site • Main revenue sources – Retailers pay a fee per click (CPC) – Display advertising (CPM) CPM CPC CPM Monthly statistics (April 2012) • Unique visitors : 2.2 million • Visits : 4 million • Pageviews : 31.6 million Copyright
Slide 34: Autotrader.nl
Autotrader.nl Netherlands Business model Front page • Listing site for cars/classics/LCV’s and motor bikes CPM • Main revenue sources: – B2B contracts – private ads, and buttons and banners. • Auto Trader is shifting to new cars and aiming with new models to increase the B2B subscription share of wa
Slide 35: Organisational structure and SBS partnership structure
Organisational structure and SBS partnership structure
Slide 36: Organisational structure
Organisational structure CEO Harri-Pekka Kaukonen News Media Media Media Media Learning Pekka Soini Finland Netherlands Russia & CEE Belgium Jacques Anu Nissinen Dick Molman Heike Aime Eijkens Rosener van Hecke Digital operations Digital transformation John Martin Finance Kim Ignatius New operating
Slide 37: Partnership structures – SBS
Partnership structures – SBS 33% 33.3% 33.3% SBS Netherlands SBS Belgium / De Vijver TV and TV magazines 67% TV, Humo magazine and production house 33.3% Governance model Governance model • Supervisory Board • Board of Directors – 5 members nominated by Sanoma (incl. Chairman) – 4 members nominated
Slide 38: Financials
§3Sanoma Financials
Slide 39: Income Statement
Income Statement 1–3/2011 1-12/2011 EUR million 1–3/2012 restated* restated* Net sales 543.6 530.2 2,378.1 EBITDA excl. non-recurring items 83.6 64.0 446.3 of net sales 15.4% 12.1% 18.8% Amortisations related to programming rights -37.7 -11.1 -92.9 Amortisations related to prepublication rights -5.2
Slide 40: Free cash flow
Free cash flow Cash flow from operations less CAPEX 1–3/2012 1-3/2012 1–3/2011 1–12/2011 EUR million cont. operations* Group Group Group EBITDA excl. non-recurring items 83.6 87.2 66.2 469.5 TV programming costs -48.7 -48.7 -15.1 -92.0 Prepublication costs -6.2 -6.2 -5.4 -28.4 Change in working capi
Slide 41: Sanoma Media
Sanoma Media Key figures 1–3/ 1–3/ 1–12/ EUR million 2012 2011 Change % 2011 Net sales 365.8 291.1 25.6 1,415.8 The Netherlands 171.6 105.3 63.0 642.0 Finland 77.4 74.2 4.3 309.7 Russia & CEE 49.0 51.4 -4.6 213.1 Belgium 56.8 50.1 13.4 209.1 Other businesses and eliminations 11.0 10.2 7.7 41.8 EBIT
Slide 42: Sanoma Media – The Netherlands
Sanoma Media – The Netherlands 2011 – Sales 642m Of which Digital 29% Other 10% Consumer revenues Advertising 49% solutions 41% 1% 30% 40% 42% 59% 28% Digital content and services Single copy Subscription Print adv. Online adv. TV adv. Note: SBS included in the figures for 5 months Copyright © Sanom
Slide 43: Sanoma Media – Finland
Sanoma Media – Finland 2011 – Sales 310m Of which Digital 36% Other 11% Consumer revenues 47% Advertising solutions 42% 5% 11% 20% 6% 74% 84% Digital content and services Single copy Subscription Print adv. Online adv. TV adv. Copyright © Sanoma Corporation | Appendix 14 June 2012 43
Slide 44: Sanoma Media – Belgium
Sanoma Media – Belgium 2011 – Sales 209m Of which Digital 6% Other 15% Advertising solutions Consumer 29% revenues 56% 0% 22% 18% 3% 78% 79% Digital content and services Single copy Subscription Print adv. Online adv. TV adv. Note: SBS included in the figures for 4 months Copyright © Sanoma Corporat
Slide 45: Sanoma Media – Russia & CEE
Sanoma Media – Russia & CEE 2011 – Sales 213m Of which Digital 13% Other 11% Consumer revenues 37% Advertising solutions 52% 2% 2% 20% 22% 76% 78% Digital content and services Single copy Subscription Print adv. Online adv. TV adv. Copyright © Sanoma Corporation | Appendix 14 June 2012 45
Slide 46: Magazines – net sales and EBIT seasonality
Magazines – net sales and EBIT seasonality 2009-2011 average for Magazines* Net sales split EBIT** split 19% 24% 27% 29% 27% 25% 24% 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Include Dutch, Finnish, Belgium and Russian operations. **Excluding non-recurring items. Copyright © Sanoma Corporation | Appendix 14 June
Slide 47: TV – net sales and EBIT seasonality
TV – net sales and EBIT seasonality 2009-2011 average for TV* Net sales split EBIT** split 12% 22% 29% 32% 37% 28% 21% 19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. Copyright © Sanoma Corporation | Appen
Slide 48: Sanoma News
Sanoma News Key figures 1–3/ 1–3/ 1–12/ EUR million 2012 2011 Change % 2011 Net sales 110.0 108.4 1.5 435.8 Helsingin Sanomat 59.3 61.2 -3.0 238.5 Ilta-Sanomat 21.2 19.1 11.3 84.4 Other publishing 25.2 23.7 6.2 97.0 Other businesses and eliminations 4.3 4.4 -2.1 15.9 EBIT excluding non-recurring ite
Slide 49: Sanoma News
Sanoma News 2011 – Sales 436m Of which Digital 12% Other 4% Consumer Advertising revenues solutions 46% 50% 7% 18% 29% 64% 82% Digital content and services Single copy Subscription Print adv. Online adv. Copyright © Sanoma Corporation | Appendix 14 June 2012 49
Slide 50: News – net sales and EBIT seasonality
News – net sales and EBIT seasonality 2009-2011 average for News Net sales split EBIT* split 25% 22% 26% 28% 21% 24% 25% 29% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. Copyright © Sanoma Corporation | Appendix 14 June 2012 50
Slide 51: Case Helsingin Sanomat
Case Helsingin Sanomat 1/3 of subscriber base digital CAGR -2.1% ~1/3 of subscriber base already in Combo or digital only 2005 2006 2007 2008 2009 2010 2011 Combo and digital only Print only Subscription 1 month 3 months 6 months 12 months Helsingin Sanomat prices 7 days 31,00 93,00 172,00 319,00 (i
Slide 52: Total reach expanded
Total reach expanded Case Helsingin Sanomat & Ilta-Sanomat Helsingin Sanomat Ilta-Sanomat Single copy Subscription Single copy Subscription Total reach* (’000) Total reach* (’000) 2.000 2.500 2.000 1.500 1.500 1.000 1.000 0.500 0.500 0.000 0.000 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Prin
Slide 53: Sanoma Learning
Sanoma Learning Key figures 1–3/ 1–3/ 1–12/ EUR million 2012 2011 Change % 2011 Net sales 53.4 60.7 -11.9 343.1 Learning 34.2 34.3 -0.4 256.6 Other businesses 21.0 28.0 -25.0 91.7 Eliminations -1.7 -1.7 -4.2 -5.3 EBIT excluding non-recurring items -13.9 -6.1 45.5 % of net sales -26.1 -10.0 13.3 Numb
Slide 54: Sanoma learning business unit
Sanoma learning business unit Pro forma Hungary 8% Sweden 8% Netherlands 28% Belgium 11% Finland 19% Poland 26% Copyright © Sanoma Corporation | Appendix 14 June 2012 54
Slide 55: Learning business unit – net sales and EBIT seasonality
Learning business unit – net sales and EBIT seasonality 2009-2011 average for learning* Net sales split EBIT** split in relative terms 14% 13% 33% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes learning business of the Learning segment only. **Excluding non-recurring items. Copyright © Sanoma Corporation | A
Slide 56: Sanoma Trade
Sanoma Trade Key figures 1–3/ 1–3/2011 1–12/ EUR million 2012 restated* Change % 2011* Net sales 23.7 81.8 -71.0 228.7 Kiosk operations 6.7 -100.0 20.9 Trade services 21.2 28.8 -26.3 103.6 Bookstores 2.5 24.8 -90.1 77.0 Movie operations 21.9 -100.0 28.4 Eliminations 0.0 -0.3 100.2 -1.2 EBIT excludin
Slide 57: Debt portfolio
Debt portfolio 31 March 2012 Committed credit facilities profile* • Gross debt EUR 1,586.1 million and net (EUR million) debt EUR 1,471.4 million – Average interest rate just above 3% p.a. – Interest sensitivity** has decreased to EUR 323 2.3 million and the duration is 29 months • Inaugural eurobon
Slide 58: Balance sheet
Balance sheet Excess of value in use in relation to Mar 31, Dec 31, carrying amount of the most important EUR million 2012 2011 cash generating units in terms of goodwill 2011 2010 Non-current assets, total 3,449 3,684 Sanoma Media Netherlands 21-50% 21-50% of which goodwill 2,309 2,316 Sanoma Media
Slide 59: Group outlook & consensus
Group outlook & consensus • Net sales to grow slightly, mostly due to the acquired SBS operations in the Netherlands and Belgium – In 2011, restated* net sales were EUR 2,378.1 million • Operating profit margin, excluding non-recurring items, is estimated to be around 10% of net sales – In 2011, res
Slide 60: Sanoma ownership structure
§3Sanoma Sanoma ownership structure
Slide 61: Sanoma – largest shareholders
Sanoma – largest shareholders % of shares 31 May 2012 and votes 23% Aatos Erkko (of which through Asipex Ab 7.25%)* 23.02 Robin Langenskiöld 7.54 Rafaela Seppälä 6.31 Antti Herlin (Holding Manutas Oy: 3.69%, 8% 4.47 56% Security Trading 0.77%) Helsingin Sanomat Foundation 3.50 6% Ilmarinen Mutual Pe
Slide 62: Important notice
Important notice The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of