Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Presentation (June 2014)
42 slides from Sanoma Oyj's investor presentation, June 2014
Slide 1: Sanoma Corporate Presentation
Sanoma Corporate Presentation June 2014
Slide 2: Sanoma in brief
Sanoma in brief ERMA] setthe world
Slide 3: Focus areas: consumer media and learning
Focus areas: consumer media and learning Last 12 months* – New media sales EUR 520 million Three Strategic Business Units Media Finland Media Netherlands Learning Other*** Sanoma Digital (pure) Media Belgium Net sales EUR 100 million Four consumer media platforms Media RUS&CEE TV & radio** Net sales
Slide 4: Digital consumer media portfolio
Digital consumer media portfolio Sanoma Digital unit will manage pure digital businesses Media Finland and Media Netherlands will manage digital (classifieds, digital content, and lead generation) assets of newspapers, magazines and TV YIXX Digital (pure digital) Transformational Net sales (rolling
Slide 5: Market leader in consumer media
Market leader in consumer media Finland Netherlands Sanoma Sanoma Yle Telegraaf Media MTV Wegener Alma Media #1 De Persgroep NL #1 TS-Yhtymä RTL NL Keskisuomalainen Audax Otavamedia STER EUR million 0 200 400 600 800 EUR million 0 200 400 600 800 #1 in newspapers #1 in consumer magazines #1 in magaz
Slide 6: Market leader in learning
Market leader in learning Finland Sweden Netherlands Market position: Market position: Market position: #1 #2 #2 Net sales: Net sales: Net sales: ~ EUR 55 million ~ EUR 30 million ~ EUR 95 million Belgium Poland Global market Market position: Market position: Market position: a #1 #1 leading player
Slide 7: Sanoma’s strategy
Sanoma’s strategy ERMA] setthe world
Slide 8: Sanoma’s strategy
Sanoma’s strategy Mission: Get the world – Sanoma helps people access and understand the world Our strategic aspiration Market leader in consumer media and learning in our countries of operation Our strategic goals Growth Renewal of products and services Growth 2016 Profitability & balance sheet Cos
Slide 9: Key elements of Sanoma’s strategy
Key elements of Sanoma’s strategy Vision GET THE WORLD Strategic Win in two #1 consumer media company #1 learning company objectives segments in the Netherlands and Finland in all operating markets Lead and Digitalise core brands to maintain #1 reach and Expand from textbooks to services and sol
Slide 10: Logic of consumer media
Logic of consumer media 1. 2. 3. Consumer Marketing Reach insight solutions 10 June 2014 Corporate presentation
Slide 11: Increasing reach – examples
1. Increasing reach – examples #1 nationwide newspaper, 2.2 million readers weekly in different channels #1 online news service in the Netherlands Growth in digital-only subscriptions +83% 820 million page views monthly, growth +14% 7.7 million visits weekly, growth +16% #1 radio channel
Slide 12: Consumer insight – Big Data offers new business opportunities
Consumer insight – Big Data offers new business opportunities 2. Consumer insight 3. Marketing solutions Consumer experience Concrete examples: Consumer Targeted Effective Sanoma account: reaches insight offerings marketing around 1 million Finns Targeted advertising Advertising campaigns Behavi
Slide 13: Balance sheet tune-up
Balance sheet tune-up Divested operations and properties Divestments total above EUR 300 million in cash Other operations Press distribution Lehtipiste Properties Sale and leaseback of Sanoma House and Sanomala Media operations Czech Media and learning Republic operations Hungary Media Media operati
Slide 14: Sanoma in 2016
Sanoma in 2016 Smaller and more focused Strong growth in digital media and new services Return to organic growth Better profitability Healthier balance sheet 14
Slide 15: Q1 2014
Q1 2014 SaAN OM CMecautcaelle|
Slide 16: Cost savings compensated decline in net sales
Cost savings compensated decline in net sales Strategy proceeding well – new media sales grew by 8.6% Q1 2014 Media Netherlands – good quarter, cost control, lower TV costs, also market environment improving slightly Media Finland – strong growth in online & mobile, cost savings offset decline i
Slide 17: Sanoma Redesign – strategic update
Sanoma Redesign – strategic update Recent developments Strategic #1 consumer media company in the Netherlands and Finland objectives #1 learning company in all operating markets Lead and Consumer media (38%* of net sales in new media in the NL and FIN) grow strategic Transformation proceeding well
Slide 18: Market environment
Market environment Advertising market – split by type Advertising correlated with consumer confidence 50% Recent positive trend in the Netherlands partly 33% 31% 30% 27% visible in advertising market 14% 8% 6% – TV advertising showing positive signs – Print advertising under pressure Print TV On
Slide 19: Group outlook for 2014 and mid-term (unchanged)
Group outlook for 2014 and mid-term (unchanged) Outlook 2013 2014 Mid-term Main drivers for the 2014 EBIT outlook actuals outlook outlook + EUR 100 million gross cost savings programme, will realise (IFRS 11 restated) (2016->) partly in 2014 - Underlying development in print circulation and print ad
Slide 20: Financials
Financials SaAN OM CMecautcaelle|
Slide 21: Net sales split – last 12 months
Net sales split – last 12 months Net sales EUR 2,051 million | EBIT excl. nri EUR 153.2 million Media operations in total Learning Netherlands and Finland 83% of net sales Diversified portfolio with five key markets 3% Netherlands 7% 10% 10% Poland Netherlands 11% 31% 42% Finland Finland Belgium Bel
Slide 22: Income Statement
Income Statement Restated* Restated* EUR million 1–3/2014 1–3/2013 1–12/2013 Net sales 438.3 470.6 2,083.5 EBITDA excl. non-recurring items 65.5 69.6 436.6 of net sales 14.9 14.8 21.0 Amortisations related to TV programme rights -43.1 -44.0 -171.1 Amortisations related to prepublication rights -6.3
Slide 23: Net sales development by strategic business unit
Net sales development by strategic business unit Q1 2014 1-3/2014 1-3/2014 1-3/2014 organic EUR million EUR million EUR million growth, % Group 438.3 470.6 -6.3 470.6 -6.2 -9.2 -4.5 Media -12.5 146.0 152.2 -4.1 438.3 Netherlands Media Finland 159.0 168.2 -5.5 Learning 41.2 45.7 -7.4 Other & elim. 92
Slide 24: EBIT excl. non-recurring items development
EBIT excl. non-recurring items development Q1 2014 EUR million 1-3/2014 1-3/2013 EUR million Group -4.0 -2.5 Media Netherlands 8.5 0.6 Media Finland 0.4 5.5 +7.9 -5.1 Learning -7.0 -4.4 Other & elim. -5.9 -4.3 -2.5 -2.6 -4.0 Media + Lower TV costs -1.6 Netherlands: + Cost efficiency - Print sales Me
Slide 25: Free cash flow
Free cash flow Cash flow from operations less cash CAPEX Restated* Restated* EUR million 1–3/2014 1–3/2013 1–12/2013 EBITDA excl. non-recurring items 65.5 69.6 436.6 TV programme costs -44.8 -55.8 -186.4 Prepublication costs -7.1 -6.5 -31.2 Change in working capital -27.8 -37.3 19.8 Interest paid -2
Slide 26: Cost savings proceeding according to plan
Cost savings proceeding according to plan Cost savings run-rate around EUR 45 million Gross margin increased vs. Q1 2013 Cost of sales split (EUR million) and Gross Margin -200 70 Other expenses Fixed costs lower in absolute terms 60 Purchased printing EUR 100 million Group-wide cost -150 50 P
Slide 27: Capital structure
Capital structure 31 March 2014 Net debt EUR 920 million (Q1 2013: 1,308) Net debt / EBITDA adjusted 4.7 4.3 – Net debt / EBITDA adjusted 4.1 times (4.0*) 3.6 4.1 <3.5 EBITDA adjusted is calculated based on 12-month 2.8 rolling EBITDA excl. non-recurring items (continuing 2.5 operations), where
Slide 28: Appendix 1: Sanoma’s business units
Appendix 1 Sanoma’s business units
Slide 29: Advertising markets in Q1 2014 vs. Q1 2013
Advertising markets in Q1 2014 vs. Q1 2013 Print advertising declining in most categories, mixed development in online and TV Finland* (net development, change in %) Print Online TV Food -14 20 -13 Motor vehicles -9 7 -7 Other classified -10 23 10 Real estate -2 0 Retail -6 20 -31 Medical 6 23 35 Re
Slide 30: Media Netherlands
Media Netherlands Key figures* EUR million 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 146.0 685.8 194.1 160.0 179.6 152.2 Digital 64.0 291.0 88.2 64.8 76.5 61.6 Online & mobile 18.7 76.9 24.3 17.4 17.7 17.4 TV 45.3 214.1 63.8 47.3 58.8 44.2 Print 79.1 369.9 94.8 90.5 96.1 88.5
Slide 31: Media Finland
Media Finland Key figures* EUR million 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 159.0 675.4 179.0 157.5 170.7 168.2 Digital 48.6 185.9 54.5 37.5 51.7 42.2 Online & mobile 21.3 74.7 21.7 15.8 20.5 16.7 TV & radio 27.3 111.2 32.8 21.7 31.2 25.5 Print 108.8 483.8 123.1 118.9 117
Slide 32: TV – net sales and EBIT seasonality
TV – net sales and EBIT seasonality 2010 - 2013 average for Dutch and Finnish TV* Net sales split EBIT** split 8% 22% 29% 30% 43% 29% 20% 19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. 32 June 2014 Corpor
Slide 33: Magazines – net sales and EBIT seasonality
Magazines – net sales and EBIT seasonality 2010 - 2013 average for Dutch and Finnish Magazines* Net sales split EBIT** split 18% 23% 27% 29% 28% 26% 24% 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes Dutch and Finnish operations, excluding TV guides. 2010-2012 not restated with IFRS 11 ‘Joint Arrangements’.
Slide 34: Newspapers – net sales and EBIT seasonality
Newspapers – net sales and EBIT seasonality 2010-2013 average for Newspapers (Finland) incl. digital business Net sales split EBIT* split 26% 25% 24% 29% 19% 24% 25% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 34 June 2014 Corporate presentation
Slide 35: Sanoma Learning
Sanoma Learning Key figures EUR million 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 41.2 304.6 32.4 123.0 103.5 45.7 Netherlands 24.5 95.3 7.4 25.0 36.5 26.3 Poland 5.2 83.8 12.8 46.7 18.1 6.2 Finland 4.8 53.5 5.6 13.9 28.7 5.3 Belgium 1.9 33.8 3.6 17.1 11.2 1.8 Sweden 4.9 29.3
Slide 36: Learning – net sales and EBIT seasonality
Learning – net sales and EBIT seasonality 2010-2013 average for Learning Net sales split EBIT* split in relative terms 12% 13% 34% 41% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 36 June 2014 Corporate presentation
Slide 37: Appendix 2: About owners and coverage
Appendix 2 About owners and coverage
Slide 38: Sanoma – largest shareholders
Sanoma – largest shareholders % of shares 31 May 2014 and votes 1. Jane and Aatos Erkko Foundation 23.02 23.0% 2. Antti Herlin (Holding Manutas Oy: 8.12%, 9.36 Security Trading 1.23%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 6. Ilmarine
Slide 39: Analyst coverage
Analyst coverage Carnegie Investment Evli Bank Nordea Pohjola Bank Mikko Ervasti Sami Sarkamies Kimmo Stenvall Matti Riikonen tel. +358 9 4766 9205 tel. +358 9 165 59928 tel. +358 10 252 4561 tel. +358 9 6187 1231 Evli.com Nordea.com/markets Pohjola.fi Carnegie.fi Handelsbanken Pareto Se
Slide 40: Sanoma’s IR team
Sanoma’s IR team Mr Olli Turunen tel. +358 40 552 8907 [email protected] Ms Katariina Hed tel. +358 50 412 5120 [email protected] IR team’s joint email address: [email protected] 40 June 2014 Corporate presentation
Slide 41: 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
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