Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q4 2008 Earnings Presentation
37 slides from Alma Media Oyj's earnings presentation, Apr 3, 2009
Slide 1: Alma Media: The winning team in hybrid media
Alma Media The winning team in hybrid media Kai Telanne, President & CEO Tuomas Itkonen, CFO Rauno Heinonen, IR Breakfast meeting at Evli Bank, April 3, 2009
Slide 2: Presentation structure
Presentation structure: Hybrid media development Markets and outlook for 2009 Ownership issues Financials Q4 & FY 2008
Slide 3: Hybrid media development
Hybrid media development
Slide 4: Finnish Newspapers, European Classified
Finnish Newspapers, European Classified + 30 local newspaper and free sheet titles Printing houses Regional newspapers Mascus license countries Net sales 2008: 341,2 MEUR - - EBIT-% 2008 : 14,2 % - - Listed in OMX Helsinki (ALN1V, Mid Cap) 4
Slide 5: Innovation is in our strategic focus
Innovation is in our strategic focus Constant renewal Chaining Product innovation Content sharing Picture size Content development Cross-promotion 63 x 132mm 100dpi Internationalisation M&A Classified as spearhead Classified in CE Europe City24 & Mascus Finnish consolidation 5
Slide 6: Online development areas
Online development areas ONLINE MEDIA SEARCH SERVICES News, editorial content Search and use of information - Develop print+online hybrid - Partnership strategy - Create or acquire new - Company search Picture size thematic services 63 x 132mm 100dpi USER MEDIA INFORMATION SERVICES Reader and user c
Slide 7: Kauppalehti – a pioneer in hybrid media
Kauppalehti – a pioneer in hybrid media 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 New services (Company search) products enable
Slide 8: Iltalehti and Iltalehti.fi reach 1,5 million Finns per day
Iltalehti and Iltalehti.fi reach 1,5 million Finns per day Reader of Iltalehti Reader of Iltalehti and Iltalehti.fi 1600 1400 One day in Iltalehti.fi: 1200 734.000 new contacts 734 1000 1.476.000 800 readers 600 189 742 400 553 200 0 Source: TNS Atlas 2008 8
Slide 9: Markets & outlook
Markets & outlook
Slide 10: GDP and advertising sales development
GDP and advertising sales development 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 -2 % -4 % -6 % -8 % GDP Media advertising Newspaper advertising Source: TNS Media Intelligence; GDP growth estimate 2008: 1.7 %) 10
Slide 11: Monthly change of advertising
Monthly change of advertising 1/2008-2/2009 40 % 30 % 20 % 10 % 0 % 01/08 02/08 03/08 04/08 05/08 06/08 07/08 08/08 09/08 10/08 11/08 12/08 1/09 2/09 -10 % -20 % -30 % Advertising change, % Newspapers advertising change, % Online advertising change, % 11 Source: TNS Media Intelligence excl. consumer
Slide 12: Advertising change by branch
Advertising change by branch Q2 08 vs Q2 07 Q3 08 vs Q3 07 Q4 08 vs Q4 07 Retail 14.8 % Retail -2.9 % Retail 8.1 % Motor v. 1.4 % Motor v. 0.3 % -7.0 % Motor v. Food & bev. 6.5 % Food & bev. 4.2 % Food & bev. 5.9 % Rec ru 4.8 % -6.6 % Recru -24.5 % Recru Houses 6.5 % -5.9 % Houses -16.9 % Houses Tel
Slide 13: The Finnish advertising market
The Finnish advertising market Advertising expenditure, MEUR Newspapers Magazines TV Radio Internet Others 1600 1400 1200 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 13 Source: TNS Gallup Oy, Adex (note: change in reseach method for 2007- 2008 comparison)
Slide 14: Outlook for 2009
Outlook for 2009 • Alma Media expects its comparable net sales and operating profit to decline from the 2008 comparable figures due to a decrease in in media advertising • First half of 2009: – Due to market conditions sales and operating profit expected to decline clearly compared to 2008. • Second
Slide 15: Ownership issues
Ownership issues
Slide 16: Shareholder issues
% of Shareholder issues Largest registered shareholders 31.3.2009 shares / votes • Alma Media’s AGM convened on March 1. Skandinaviska Enskilda Banken 16.0 11, 2009 2. Oy Herttaässä Ab 13.4 – Agenda included the requests of Oy Herttaässä Ab/Kai Mäkelä 3. Ilkka-Yhtymä Oyj 10.4 – Decisions included au
Slide 17: Financials Q4 and FY2008
Financials Q4 and FY2008
Slide 18: Key Figures Q4 2008
Key Figures Q4 2008 Net sales, MEUR EBIT, MEUR 1,3% 25 100 89,3 86,6 90 85,5 84,0 81,4 80 20 70 8,9 60 15 0,6 50 ‐19,0% 40 10 30 14,4 11,7 11,6 12,2 20 5 9,5 10 0 0 Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408 Extraordinary items 18
Slide 19: 2007/08 Quarterly - Net Sales and Operating Profit
2007/08 Quarterly - Net Sales and Operating Profit Net sales, MEUR EBIT, MEUR 100 25 89,3 85,5 86,6 84,0 84,0 81,4 81,9 77,5 80 20 8,9 60 15 1,9 0,6 0,7 40 10 14,1 14,4 14,4 20 11,6 12,7 12,2 11,7 5 9,5 0 0 7 8 7 8 7 8 7 8 30 40 40 10 10 20 20 30 Q107 Q108 Q207 Q208 Q307 Q308 Q407 Q408 Q Q Q Q Q Q Q
Slide 20: Key figures 2005 - 2008, MEUR
Extraordinary items Key figures 2005 - 2008, MEUR Net sales, MEUR EBIT, MEUR EBIT% 400 80 20 % +3.7% 350 70 300 -9.8% 60 15 % 250 50 200 40 10 % 150 30 100 20 5% 50 10 0 0 0% 2005 2006 2007 2008 2005 2006 2007 2008 EBIT% and chg% w/o extraordinary items 20
Slide 21: Net sales change by type
Net sales change by type Circulation, MEUR Advertising, MEUR 5.0 5.0 4.0 4.0 3.0 3.0 +6.1% 2.0 2.0 +2.8% 1.0 1.0 +1.3% +0.3% 0.0 0.0 Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408 21
Slide 22: Net sales by segment
Net sales by segment Newspapers, MEUR Kauppalehti Group, MEUR 70.0 25.0 +3.1% 60.0 +3.8% 61.1 20.0 -0.8% 57.1 50.0 +6.4% 19.0 15.0 16.5 40.0 30.0 10.0 20.0 5.0 10.0 0.0 0.0 Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408 22
Slide 23: Net sales by segment
Net sales by segment Markeplaces, MEUR Alma Media, MEUR 10.0 100.0 +1.3% +11.1 +5.0% -6.8% 80.0 86.6 8.0 8.4 81.4 7.5 6.0 60.0 4.0 40.0 2.0 20.0 0.0 0.0 Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408 23
Slide 24: EBIT by segment
EBIT by segment Newspapers, MEUR Kauppalehti Group, MEUR 14.0 3.5 12.0 3.0 +12.2% -4.0% +64.0% 10.0 10.5 2.5 10.0 2.5 -8.8% 8.0 2.0 2.0 6.0 1.5 4.0 1.0 2.0 0.5 0.0 0.0 Q407 Q108 Q208 Q308 Q408 Q407 Q108 Q208 Q308 Q408 24
Slide 25: EBIT by segment
EBIT by segment Marketplaces, MEUR Other, MEUR 2.5 10.0 2.0 8.0 1.5 6.0 -23.1% 1.0 4.0 1.0 0.5 2.0 -181.3% 0.0 0.0 -1.2 Q407 Q108 Q208 Q308 Q408 -2.1 -0.5 -2.0 -1.0 Q407 Q108 Q208 Q308 Q408 -1.0 -4.0 25
Slide 26: 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% (88m€) Etuovi.com 45.8% (16m€) Newspapers 68.1% (232m€) Kauppalehti 61.5% (46m€) monster 22.1% (8m€) KL-Group 21.5% (73m€) Iltalehti 25.0% (59m€) Lehdentekijät 18
Slide 27: Net Sales change 2008 vs 2007, MEUR
Net Sales change 2008 vs 2007, MEUR Alma Media total Newspapers Kauppalehti-Group Marketplaces +12.3 MEUR (+3.7 %) +6.1 MEUR (+2.7 %) +3.3 MEUR (+4.8 %) +3.4 MEUR (+11.2 %) 7.0 4.0 4.0 4.0 6.0 3.5 3.5 3.5 3.0 3.0 3.0 5.0 2.5 2.5 2.5 MEUR MEUR MEUR MEUR 4.0 2.0 2.0 2.0 3.0 1.5 1.5 1.5 1.0 2.0 1.0 1.0
Slide 28: Net Sales Q4 2008, MEUR
Net Sales Q4 2008, MEUR Alma Media total Newspapers Kauppalehti-Group Marketplaces 86,6 MEUR 61,1 MEUR 19,0 MEUR 7,5 MEUR Aamulehti 36,2% (22,1m€) Etuovi.com 46,4% (3,5m€) Newspapers 69,3% (60,0m€) Kauppalehti 60,9% (11,8m€) monster 17,6% (1,3m€) KL-Group 21,8% (18,8m€) Iltalehti 23,9% (14,6m€) Lehd
Slide 29: Net Sales change Q4 2008 vs Q4 2007, MEUR
Net Sales change Q4 2008 vs Q4 2007, MEUR Alma Media total Newspapers Kauppalehti-Group Marketplaces +1,1 MEUR (+1,3 %) +1,9 MEUR (+3,1 %) -0,1 MEUR (-0,8 %) -0,5 MEUR (-6,8 %) 2,0 2,0 2,0 2,0 1,5 1,5 1,5 1,5 1,0 1,0 1,0 1,0 MEUR MEUR MEUR MEUR 0,5 0,5 0,5 0,5 0,0 0,0 0,0 0,0 -0,5 -0,5 -0,5 -0,5 -1,
Slide 30: Key ratios in Q4 2008
Key ratios in Q4 2008 Equity ratio, % Gearing, % ROE% ROI% 80 10 70 60 69.8 6.5 53.7 60.4 70 60 5 50 60 57.2 50 0 42.0 40 50 34.5 Q4 07 Q4 08 40 40 -5 30 30 30 -10 20 20 20 -15 10 10 10 -15.2 0 -20 0 0 Q4 07 Q4 08 Q4 07 Q4 08 Q4 07 Q4 08 30
Slide 31: Cash flow and investments
Cash flow and investments 16 8 14.8 14 6 12 10 4 8.6 MEUR MEUR 8 7.1 2 6 4.6 0 4 Q4 07 Q4 08 2 -1.1 -2 0 -2.8 Q4 07 Q4 08 -4 from operating activities gross investments before financing activities proceeds from sales of assets 31
Slide 32: Cash flow from operating activities
Cash flow from operating activities 30.0 25.0 20.0 MEUR 15.0 10.0 7.9 8.6 7.1 5.0 0.0 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 32
Slide 33: Net debt, MEUR
Net debt, MEUR 30.0 25.8 23.9 19.8 20.0 10.0 5.8 0.0 MEUR Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 -10.0 -6.5 -20.0 -17.9 -30.0 Dividend 27.3.08 67.2 MEUR -40.0 33
Slide 34: EPS and shareholders' equity per share
EPS and shareholders' equity per share 0.80 1.80 0.70 1.60 0.12 1.40 0.60 1.20 0.50 0.03 0.94 1.00 0.40 0.54 0.80 0.30 0.56 0.60 0.48 0.20 0.40 0.64 0.64 0.10 0.20 0.00 0.00 2007 2008 2007 2008 One time items Retained earnings EPS w/o one time items Restricted equity 34
Slide 35: Dividend yield%, Share price 31.12.2008 4,95 eur
Dividend yield%, Share price 31.12.2008 4,95 eur 12,0% 10,1% Past dividend 10,0% 9,1% yields, % 8,1% 2007 7,7 % 8,0% 7,1% 2006 7,0 % 2005 8,5 % 6,1% 6,0% 5,1% 4,0% 4,0% 2,0% 0,0% 0,2 0,25 0,3 0,35 0,4 0,45 0,5 Divident eur/share 35 * Dividend proposal 0,5 eur/share includes authorization to Board of
Slide 36: DPS and distributable equity per share (EUR)
DPS and distributable equity per share (EUR) 1.00 1.80 0.90 0.90 1.60 0.80 1.40 0.68 0.70 0.65 1.20 0.60 0.90 0.94 0.50 0.51 1.00 0.50 0.54 0.80 0.40 0.30 0.60 0.30 0.20 0.40 0.64 0.64 0.64 0.10 0.20 0.00 0.00 Dec 06 Dec 07 Dec 08 Dec 06 Dec 07 Dec 08 Dividend per share Retained earnings Earnings pe
Slide 37: Equity ratio and gearing, %
Equity ratio and gearing, % 80 10 69.8 6.5 70 5 60 57.2 50 0 Q4 07 Q4 08 40 -5 30 20 -10 10 -15 0 -15.2 Q4 07 Q4 08 -20 Equity ratio, % Gearing, % 37