Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (May 2002)
114 slides from Alma Media Oyj's investor day presentation, May 15, 2002
Slide 1: Capital Markets Day May 15th, 2002
Capital Markets Day May 15th, 2002 Juho Lipsanen
Slide 2: Alma Media's brands have a strong market share in Finland
Alma Media’s brands have a strong market share in Finland Commercial TV channel #1 4.4 million viewers weekly Nationwide, commercial radio #1 1.7 million listeners weekly Business information #1 Newspaper publisher #2 2.1 million readers weekly Aamulehti, Iltalehti, Satakunnan Kansa,
Slide 3: Highlights 1Q02
Highlights 1Q02 Broadcasting volumes better than in 1Q01 television advertising 3/02 +3,5 % compared to 3/01 MTV3 1Q02 + 3.3 % compared to 1Q01 MTV3 increased market share Interactive (=new media activities) achieved a small positive EBIT 1Q02 (vs –3.7 MEUR) new management in place and n
Slide 4: Key figures 1Q02
Key figures 1Q02 2002 2001 2001 1-3 mo 1-3 mo Net sales 117,0 119,6 478,3 Share of profits in assoc. comp. - 2,4 -0,7 -3,8 Other operating income +0,5 +1,3 +14,6 Operating loss (EBIT) -3,4 -7,6 -19,4 % -2,9% -6,3% -4,1% Financial income/exp. -1,8 -0,4 -7,2 Profit before extraord. items -5,2 -8,0 -26
Slide 5: Key figures 1Q02
Key figures 1Q02 2002 2001 2001 31.03. 31.03. 31.12. Total assets, MEUR 456,4 483,4 453,4 Equity ratio, % 36 % 41 % 37 % Shareholders’ equity per share, EUR 9,74 11,73 10,26 Interest-bearing debt, MEUR 196,7 183,3 200,5 Gearing, % 115 % 92 % 112 % Investments, MEUR 2,8 67,4 94,4
Slide 6: Net sales 2000-1Q02, MEUR
Net sales 2000-1Q02, MEUR 160 135 140 124 126 125 120 122 121 121 121 121 122 122 119 120 120 120 108 117 100 106 80 60 40 20 0 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 Net sales Rolling 4Q, MEUR
Slide 7: EBIT 1Q00-1Q02, MEUR
EBIT 1Q00 -1Q02, MEUR 20 6% 6% 5% 15 4% 4% 10,1 10 8,4 3% 3,9 4,4 2% 5 1% 1% 0 0% 0% -5 -1 -3,4 -2 % -10 -5,7 -7,6 -3 % -15 -4 % -4 % -20 -16 -6 % 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 EBIT, MEUR Rolling 4Q % of net sales
Slide 8: Hannu Olkinuora
Hannu Olkinuora Executive Vice President and President of Alpress Joined company second time March 1, 2002 Age 52 yrs Education MA Background Journalism Scandinavian newspaper leadership
Slide 9: Alpress Newspapers
Alpress Newspapers • 30 newspapers • combined circulation 508 000 regional leaders local newspapers • 1,6 million daily readers town and free-distribution newspapers [ 17.9.2001/ja/kj
Slide 10: Alpress net sales 2000-1Q02, MEUR
Alpress net sales 2000-1Q02, MEUR 56 54 54 52,3 52 52 51 52 52 49,4 51 50 49,751 50 50 49 48 46,6 47 47 46,6 46 46 44 42 40 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 Net sales Rolling 4Q, MEUR
Slide 11: Alpress EBIT 1Q00-1Q02, MEUR
Alpress EBIT 1Q00 -1Q02, MEUR 9 14 % 7,7 8 7 7 6,6 6,7 7 13,1 % 13 % 6 5,5 12,5 %5 12,4 % 12,4 % 5 3,7 12 % 4 3,4 11,6 % 11,8 % 3 11,3 % 11,1 % 11 % 2 11,0 % 1 0 10 % 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 EBIT, MEUR Rolling 4Q % of net sales
Slide 12: Circulation of Iltalehti 1994 - 2001
Circulation of Iltalehti 1994 - 2001 140 000 +6,7 % +1,6 % 130 000 +3,8 % +5,7 % 120 000 +6,7 % 110 000 +0,7 % +3,3 % 100 000 90 000 80 000 1994 1995 1996 1997 1998 1999 2000 2001 Source: The Finnish Audit Bureau of Circulations
Slide 13: Juha Blomster
Juha Blomster Executive Vice President and Director of Business Information Group (BIG) joined company 10 yrs ago Age 44 yrs Education M.Sc.(Econ.) Background Marketing Newspaper leadership
Slide 14: Lauri Helve
Lauri Helve Executive Vice President and Publisher and Editor-In-Chief of Kauppalehti joined company 1989 Age 59 yrs Education B.A in Journalism Background Journalism
Slide 15: Business Information Group
Business Information Group TALENTUM OYJ Business Information Group 51 % 33% PRODUCT FAMILY
Slide 16: Business Information Group
Business Information Group Founded in Tallinn 1990 Moscow Distributes daily around 1000 news items in five languages Net sales Riga EEK 55 million (3.5 MEUR) Corp. office Regional office Kaliningrad Vilnius
Slide 17: BIG net sales 2000-1Q02, MEUR
BIG net sales 2000-1Q02, MEUR 14 12,3 12 12 11,4 11 11 10,9 10,1 11 11 1011 11 11 10 10 11 10 10 8,6 8 6 4 2 0 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 Net sales Rolling 4Q, MEUR
Slide 18: BIG EBIT 1Q00-1Q02, MEUR
BIG EBIT 1Q00 -1Q02, MEUR 4 25 % 3,423 % 23 % 3,5 22 % 21 % 21 % 20 % 20 % 3 19 % 2,5 2,4 18 % 2,5 15 % 2 2 1,7 1,7 13 % 1,5 1,2 10 % 1 1 1 5% 0,5 0 0% 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 EBIT, MEUR Rolling 4Q % of net sales
Slide 19: Financial papers, advertising revenue 1-3/2002
Financial papers, advertising revenue1-3/2002 milj. € 0 1 2 3 4 5 6 7 Kauppalehti -18 % -27 % Kauppalehti Optio Talouselama -20 % -63 % Tekninen Uratie Tekniikka&Talous -13 % -35 % Taloussanomat -30 % Muut 2002 2001 Source: Gallup Mainostieto
Slide 20: Heikki Salonen
Heikki Salonen President of Alprint joined company 1970 Age 65 yrs Education M.Sc.(Eng.) Background Printing technology
Slide 21: Alprint net sales 2000-1Q02, MEUR
Alprint net sales 2000-1Q02, MEUR 35 30 30 27 25 21 24 22 21 20 20 21 21 19 20 20 1720 18 18 1517 15 10 5 0 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 Net sales Rolling 4Q, MEUR
Slide 22: Alprint EBIT 1Q00-1Q02, MEUR
Alprint EBIT 1Q00 -1Q02, MEUR 0 0% -1 % -0,5 -2 % -0,5 -1 -3 % -1 -1 -1 -1 -4 % -1,5 -5 % -6 % -6 % -2 -1,7 -1,7 -8 % -8 % -2,5 -9 % -9 % -2,4 -10 %-10 % -3 -10 % -3 -3,5 -12 % 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 EBIT, MEUR Rolling 4Q % of net sales
Slide 23: Pekka Karhuvaara
Pekka Karhuvaara President of Broadcasting and President of MTV Oy joined company 1994 Age 48 yrs Background Diplomacy Journalism Television
Slide 24: Raimo Mäkilä
Raimo Mäkilä Executive Vice President of Alma Media Interactive joined company 1997 Age 44 yrs Education M.Sc.(Eng) Background Information Technology classified services
Slide 25: Ritva Sallinen
Ritva Sallinen CFO, Executive Vice President, Finance and Administration Joined Aamulehti Corporation 1992 Age 53 yrs Education M.Sc (Econ.) Background Financial
Slide 26: Juho Lipsanen
Juho Lipsanen President and CEO since March 1st 2002 Age 40 yrs Education M.Sc (Econ.) Background Financial Global leadership
Slide 27: Broadcasting
Broadcasting Pekka Karhuvaara
Slide 28: Broadcasting Division
Broadcasting Division 100% analog 100 % digital 65 % 50 % 74% 100%
Slide 29: Vision of MTV Oy
Vision of MTV Oy ”MTV is the electronic highway for illustrated media services”
Slide 30: Share of viewing 2000-2002, January – March
Share of viewing 2000-2002, January – March from 6 pm to 11 pm 10-44 years 2002 2001 2000 MTV3 42.0 % 41.8 % 39.1 % YLE1 15.3 % 17.2 % 19.4 % YLE2 19.6 % 17.8 % 18.3 % Nelonen 17.0 % 17.5 % 17.0 % Subtv 2.1 % 1.3 % 0.0 % Others 4.0 % 4.4 % 6.2 % Total min 86 78 82
Slide 31: Share of commercial viewing, January – March
Share of commercial viewing, January – March from 6 pm to 11 pm 10-44 years 2002 2001 2000 MTV3 + Subtv 72 % 71 % 70 % Nelonen 28 % 29 % 30 % Share of TV advertising sales 2002 2001 2000 MTV3 + Subtv 74 % 73 % 77 % Nelonen 26 % 27 % 23 %
Slide 32: Net Sales (MEUR)
Net Sales (MEUR) 50 45 43 40 41 40 37 38 30 2000 2001 20 2002 10 0 MTV3 BROADCASTING
Slide 33: Broadcasting Cost Structure (MEUR)
Broadcasting Cost Structure (MEUR) 20 19 18 17 15 2000 10 10 2001 8 8 8 8 7 7 7 2002 6 5 5 4 5 0 Network rental Concession fee Programming Salaries Other
Slide 34: TV4 (MTV's share 23.4 %) January – March 2002
TV4 (MTV’s share 23.4 %) January – March 2002 Advertising sales 535 MSEK ( -6 %) EBIT -39 MSEK (effect on MTV -1.3 MEUR) Negative one-off figure -37 MSEK 100 MSEK cost-cutting program
Slide 35: Will TV Win Market Share?
Will TV Win Market Share? Heikki Rotko
Slide 36: Product Portfolio in Strong Shape
Product Portfolio in Strong Shape Commercials Co-operation -national ”Info-mercials” in programming -regional Teletext/ MTV3i MTV Mobile SuperTeletext
Slide 37: International Comparison of TV's Share of Advertising Expenditure
International Comparison of TV’s Share of Advertising Expenditure: Room for Further Growth…. % 54,1 Portugal 46,6 45,9 Belgium 37,1 33,2 France 29,6 25,5 Ireland 23,1 22,4 Sweden 21,8 20,4 Finland 19,7 Source: European Advertising & Media Forecast 2000 18,8 Holland 18,7 11,2 EU 1999 31,8 43,5 USA 36
Slide 38: Monthly advertising sales, MTV3 and Nelonen
Monthly advertising sales, MTV3 and Nelonen, monthly change %, 1/00 - 3/02 80 % 60 % 40 % 20 % 0% -20 % -40 % ov ov n n n n n l l ec ec ug ep ug ep pr pr ar ar ar b b b ct ct ay ay Ju Ju Ja Ju Ja Ju Ja Fe Fe Fe O O A A M M M N N D D A S A S M M MTV3+Subtv Nelonen Source: Gallup-Mainostieto Oy, Alma
Slide 39: MTV3 Customer Satisfaction Index
MTV3 Customer Satisfaction Index 8.80 8.70 8.60 8.50 8.40 8.30 8.20 8.46 8.10 8.26 8.00 8.04 7.90 7.86 7.82 7.80 7.70 7.60 7.62 7.53 7.56 7.50 7.49 7.40 01/00 06/00 10/00 02/01 06/01 10/01 2/02 6/02 10/02 +0.04 +0.03 +0.06 +0.20 +0,04 +0,18 TARGET
Slide 40: Advertising Appeal of Different Media
Advertising Appeal of Different Media Advertisers 36 Magazines 32 26 Newspapers 31 9 2002 Free papers 11 2001 29 Radio 30 58 TV 61 (74 %) 20 Outdoor advertising 30 23 Direct mail 23 19 Exhibitions 18 3 Directories/catalogues 8 35 Internet 49 % 0 20 40 60 80 100 Source: MEDIA COMPANY SURVEY 2002 TV b
Slide 41: Characteristics Associated With Media Companies
Characteristics Assoc. With Media Companies Advertisers Medium with largest national coverage Diversity of medium 4 6 A-lehdet 3 A-lehdet 5 2 0 Aller 1 2002 Aller 1 2002 18 2001 19 Helsingin Sanomat 20 Helsingin Sanomat 17 2001 7 7 Iltalehti 4 Iltalehti 3 7 6 Ilta-Sanomat 8 Ilta-Sanomat 3 4 1 JCDeca
Slide 42: Characteristics of Media Companies
Characteristics of Media Companies Advertisers 21 A-lehdet 13 Support brand creation Aller 5 8 2002 Helsingin Sanomat 41 2001 31 13 Iltalehti 11 15 Ilta-Sanomat 12 17 JCDecaux 22 27 Kauppalehti 21 25 Kärkimedia 20 32 Sanoma Magazines 26 16 Talentum 18 6 Readers Digest 5 22 United Magazines 13 10 Kis
Slide 43: Price of TV advertising in Europe
Price of TV advertising in Europe (30 seconds, 1000 viewers, EUR) 30 27,6 25 23,6 20,5 21 21 20 14 14,7 15 10 10,3 10 8,7 6,9 4,8 5 0 ay s y d in ce en um k d ly a an an ar nd an tri pa Ita w an ed m gi us m rla Irl or nl S Fr el en w er Fi A N he B S G D et N Source: Carat Finland Oy 2001
Slide 44: Commercial Channels: Shares of Total Viewing Time
Commercial Channels: Shares of Total Viewing Time Jan. - March 2002 10+ y. 11,6 39,3 4-14 y. 15,1 49 15-24 y. 20,6 48,9 25-44 y. 16 42 Women 25-44 y. 15,7 45,5 Men 25-44 y. 16,2 38,5 Women 45-64 y. 9,6 38,5 Men 45-64 y. 10,6 30,3 25-44 y. urban 17,5 40,6 25-44 y. urban family 2+ 17,5 40,7 18+ y. wit
Slide 45: Television – The Finns' Main Source of News
Television – The Finns’ Main Source of News Most important news source 1979–2001 (%) 80 67 69 70 62 62 62 59 58 60 49 50 51 50 47 41 44 44 43 45 40 37 32 35 33 42 40 29 29 39 40 38 28 30 25 24 24 21 19 21 18 16 20 15 14 15 14 12 13 14 10 6 9 8 9 10 1 1 2 0 1979 1981 1982 1983 1984 1985 1988 1991 199
Slide 46: News Watched on MTV3 Channel
News Watched on MTV3 Channel News broadcasts of different channels: share of total viewing time (17.00 -02.00) January – November 2001 3 Nelonen 3 14 TV2 13 37 TV1 28 46 MTV3 55 0 10 20 30 40 50 60 Under 45 yrs 45+ yrs Source: Finnpanel Oy
Slide 47: Television Offers Widest Range of Entertainment
Television Offers Widest Range of Entertainment Ease my loneliness 4 13 Follow public figures 12 21 Do my own thing 2126 Get more excitement in my life 2 38 Follow people's lives or fates 32 40 Enjoy culture 21 44 Experience something new 7 51 Learn 69 55 Follow sport 47 56 Be entertained 27 83 Rela
Slide 48: Subtv's Profile is Excellent
Subtv’s Profile is Excellent Subtv’s profile (January – March 2002) 51 Female 10+ 42 46 Male 10+ 55 9 15-24 y. 25 26 25-44 y. 44 58 45+ y. 23 60 Towns and cities 89 40 Countryside 11 0 10 20 30 40 50 60 70 80 90 100 Subtv, profile All TV, profile Sources: Finnpanel Oy, TV meter survey, Gallup Market
Slide 49: Sports Channel
Sports Channel Monday: League Tuesday: Football magazine Wednesday: Horse racing from Vermo, ROCsport Thursday: Football, Volvo Ocean Race Friday: Superpesis, UK Football Show Saturday: Maple League Sunday: Equestrian, topical Thur-Sun Golf (new service), European PGA Tour 2002 April
Slide 50: Summary
Summary Clear, good organization with 80 professionals More defined focus in B-to-B marketing Attractive power of TV
Slide 51: Cross-Media: What does it mean?
Cross-Media: What does it mean? Hannu Laakso
Slide 52: Customer Satisfaction Survey March 2002
Customer Satisfaction Survey March 2002 ”They try to meet today’s challenges. Creating different advertiser packages has good practical value. They can tell us that this package will reach young people, and that package adults. They’ve got tailored concepts.” ”Their innovative approach – truly c
Slide 53: Cross-Media
Cross-Media Whereas advertising is aimed at consumers, consumers are looking for content they find interesting Content of most interest to consumers creates an attractive commercial media platform with greater impact (commercial power)
Slide 54: Example: Popstars programme
Example Popstars programme which, besides television, is easily adapted to Radio The afternoon newspaper The Internet Teletext Mobile phone environment
Slide 55: Cross-Media is…
Cross-Media is… The simultaneous or consecutive distribution of the same content in different media, allowing the content to adapt to each medium Commercially attractive solutions are built up around this content in which each level has its own clearly defined visibilities, benefits and rights
Slide 56: Benefits to Our Customers
Benefits to Our Customers: Reaching a target group and gaining attention in an emotionally charged atmosphere can multiply the power of a cross-media solution Hockey match vs. Hockey Night We offer our customers a comprehensive and high-quality content package from a single source for the cu
Slide 57: Cross-Media Cases in Alma Media
Cross-Media Cases in Alma Media NHL Power Game 1997-1999 / Stimorol MTV3, MTV3i, MTV3TXT, Iltalehti, held at the Hartwall Arena Helmi 2000-2001 / several customers MTV3, MTV3i, MTV3TXT, Iltalehti, Radio Nova Saldo 2000 - Kauppalehti, MTV3, MTV3i, MTV3TXT Lätkäguru 2001 Hockey Night pro
Slide 58: Cross-Media Cases in Alma Media
Cross-Media Cases in Alma Media Jyrki 1996-2001 / several different customers MTV3, MTV3i, Iltalehti Alpine skiing 1999 - / Audi, Finnair, Leaf, Sinebrychoff SHL players, Levi EC competitions, MTV3, Iltalehti, MTV3i, MTV3TXT, Radio Nova Secret Lives (Salatut Elämät) 2002 / Hesburger MTV3
Slide 59: The Great Adventure: cross-media in Alma Media
The Great Adventure (Suuri Seikkailu): cross-media in Alma Media
Slide 60: The Great Adventure…
The Great Adventure… …content distributed in several different media
Slide 61: The Great Adventure
The Great Adventure One month of solid personal drama from The Great Adventure (GA) 30 min a day A 1 hour show of final, immediate repeats the next day 18 new TV stars, two 9-person teams Optional consumer promotion including distribution
Slide 62: The Great Adventure
The Great Adventure Review of the previous summer Introduction of competitors, election of captains, news on events at GA, programme information – what happens next Chat forum with live picture, each competitor has own chat column Live picture from team’s islands, homes and tents, on site 24
Slide 63: The Great Adventure
The Great Adventure Full-page report on GA daily Iltalehti journalist and photographer on site 24 h/day ”What is really happening in GA... The full story in Iltalehti every day. ” The Great Adventure 2003 image
Slide 64: The Great Adventure
The Great Adventure Strongly involved in consumer promotion Edited material Advance task for teams before evening programme Instant reports The Great Adventure 2003 sound world
Slide 65: The Great Adventure
The Great Adventure Events in GA monitored and reported daily Election of captain, removal of competitors and other important events The Great Adventure image On site 24 h/day
Slide 66: The Great Adventure
The Great Adventure The Great Adventure media pool involved: MTV3, MTV3i, MTV3 TXT, Radio Nova & Iltalehti offer partners a highly diverse visibility platform packaged in a single offer, easy to purchase, comprehensive in scope plus opportunity to adapt theme for own distribution purposes...
Slide 67: Elements of The Great Adventure consumer promotion
Elements of The Great Adventure consumer promotion could include: Recruitment of competitors using own distribution channel Roadshow introducing competitors and programme to consumers Events in the distribution chain in which consumers (via competitions) can themselves participate in The Great
Slide 68: Summary: Cross-Media is a step towards deeper co-operation
Summary: Cross-Media is a step towards deeper co- operation Customers’ strategic intent to gain added value for their product / service becomes more tangible More can be demanded, because much has already been done Cross-media productization is one opportunity for Alma Media to demonstrate its
Slide 69: The Great Adventure 2002
The Great Adventure 2002 Sampo Päällysaho, Rautakesko Hannu Översti, Keswell
Slide 70: The Great Adventure: Goals
The Great Adventure: Goals For the retail chains Activate customers to visit stores Create a positive image Differentiate from competitors Good collaboration with suppliers For their customers Positive ”shopping” Competitions Product offers
Slide 71: K-rauta is Finland's Best Known Hardware Store
K-rauta is Finland’s Best Known Hardware Store, acc. to Retail Chain Survey 2002 100 87 visit or know K-rauta 87 % of respondents 90 80 73 70 66 65 60 60 55 50 38 40 28 30 20 20 10 0 t us t a tia us TV i ke ne k ut rk ha au sk R ar -ra ta ta au ke au R i-M S K uu B R gr P A N = 2,172 number of respo
Slide 72: Domestic Appliance Stores, Total Awareness
Domestic Appliance Stores, Total Awareness DOMESTIC APPLIANCE STORES: TOTAL AWARENESS % All respondents, n=624 0 10 20 30 40 50 60 70 80 90 100 92 Expert 95 88 56 Gigantti 49 22 HOT 9 97 Musta Pörssi 99 100 87 Tekniset 90 86 1 Ei muista / ei osaa sanoa 1 0 viikko 28-30/2001 viikko 28/2000 viikko 29/
Slide 73: Domestic appliance stores, spontaneous awareness
Dom. appliance stores, spontaneous awareness Men 25 –44 years Product Group: DOMESTIC APPLIANCE STORES SPONTANEOUS AWARENESS Men 25-44 years (%) 100 90 80 70 Musta Pörssi 60 Expert Tekniset 50 Gigantti 40 HOT 30 20 10 0 Viikko 27/1997 Viikko 29/1998 Viikko 29/1999 Viikko 28/2000 Viikko 28- 30/2001
Slide 74: The Great Adventure 2002
The Great Adventure 2002 1. Stores’ own The Great Adventure 2. Advertising tools 3. Store marketing Receipt folder competition Road Show
Slide 75: Stores' Own The Great Adventure
Stores’ Own The Great Adventure K-rauta and Musta Pörssi official partners Each store has own The Great Adventure competition Joint first prize of chains: a Kimara 54 summer cottage equipped with Philips products (total value €30,000) Main prize chosen in raffle from among all correct answer
Slide 76: TV Advertising
TV Advertising Joint advance spot 6-20 May and logo Chains’ sponsorship logo Short 3-second logo spots Advertisement about store competition
Slide 77: Radio
Radio • 15 sec ad voiced over by Taru Valkeapää • Produced in Radio Nova • Main message: visit K-rauta and Musta Pörssi and enter the store competition
Slide 78: Newspaper Advertising
Newspaper Advertising TV spots supported by newspaper advertising featuring product offers and campaign logos Store competitions highlighted in chain ads and ads by individual stores.
Slide 79: Retail Store Marketing
Retail Store Marketing Mobiles Stand Shelf talker Competitions Road Show
Slide 80: Receipt Folder Competition
Receipt Folder Competition Just before start of programme check-outs will give each customer a ’receipt folder’ containing their receipt and question Receipt also available on request No obligation to buy Competition lasts entire duration of The Great Adventure 21 May – 19 June Question: w
Slide 81: Road Show
Road Show Road Show with show hosts at previously agreed stores Stores not required to make special arrangements Road Show materials Carpet for promotion site with logos of retail chains and The Great Adventure Four Lapland pine logs to create feeling of the great outdoors Hosts dressed
Slide 82: Digital TV
C apital | ALMA | MEDIA
Slide 83: Alma Media Interactive
Alma Media Interactive Raimo Mäkilä
Slide 84: Alma Media Interactive Q1/02
Alma Media Interactive Q1/02 Environment • Use of the Internet is still growing • From the media company perspective, the new media business is consolidating in Finland • Internet advertising is growing however, Alma Media’s market share 56.5 % Interactive Q1/02 • EBIT +20 KEUR (-3.7 MEUR 2001) • Sa
Slide 85: Alma Media Interactive, Organization 2002
Alma Media Interactive, Organization 2002 Alma Media Interactive MTV3 Interactive Classifieds Content Services Network Services Administration, R&D
Slide 86: Visitors per Week 8/1998 – 4/2002
Visitors per Week 8/1998 – 4/2002 Source:WTM/IMR/Alma Media 1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 Aug Nov Feb Ma Aug Nov Feb Ma Aug Nov Feb Ma Aug Nov Feb Alma Media Sonera MSN SanomaWSOY Jippii
Slide 87: MTV3.fi Internet Access Customers
MTV3.fi Internet Access Customers 10/00 – 4/02 200 000 150 000 100 000 50 000 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 88: MTV3 Teletext Channel, net sales and visitors
MTV3 Teletext Channel, net sales and visitors1997-E2002, indexed 1997 = 100 4 3,4 3,3 3 2,8 2,3 2 1,8 1,8 1,6 1,3 1,3 1 1 1 0 1997 1998 1999 2000 2001 E2002 Net Sales index Visitors index
Slide 89: MTV3 Interactive Q101-Q102
MTV3 Interactive Q101-Q102 indexed Q101 = 100 250 223 70 % 200 173 50 % 160 138 146 30 % 150 124 100100 108 104 10 % 10 % 100 -13 % -10 % 50 -26 % -30 % 0 -49 % -50 % -50 -67 % -70 % Q101 Q201 Q301 Q401 Q102 Net Sales index EBIT index EBIT%
Slide 90: mtv3.fi, mtv3.fi/mobiili, mtv3 ISP Q101-Q102
mtv3.fi, mtv3.fi/mobiili, mtv3 ISP Q101-Q102 indexed Q101 = 100 250 212214 160 % 206 200 183 120 % 145 146 80 % 150 123 117 40 % 100100 100 10 % 0 % -13 % 50 -40 % -81 % -71 % -80 % 0 -120 % -50 -153 % -160 % Q101 Q201 Q301 Q401 Q102 Net Sales index EBIT index EBIT%
Slide 91: Classified Q101-Q102
Classified Q101-Q102 indexed Q101 = 100 250 219 40 % 200 180 157 20 % 150 100100 102 5% 100 0% -4 % 85 -10 % 79 79 88 50 -20 % -20 % 0 -31 % -50 -40 % Q101 Q201 Q301 Q401 Q102 Net Sales index EBIT index EBIT%
Slide 92: Etuovi.com, Autotalli.com, Dime.fi Q101-Q102
Etuovi.com, Autotalli.com, Dime.fi Q101-Q102 indexed Q101 = 100 250 120 % 206 200 166 168 80 % 150 129137 131 40 % 100100 104 100 6% 0% 91 -37 % 50 -44 % -40 % -59 % 0 -80 % -50 -121 % -120 % Q101 Q201 Q301 Q401 Q102 Net Sales index EBIT index EBIT%
Slide 93: Jobline Q101 – Q102
Jobline Q101 – Q102 indexed Q101 = 100 160 50 % 120 100100 30 % 80 40 15 % 72 74 16 % 15 % 60 50 52 55 10 % 44 0 11 % -40 -10 % -80 -30 % -120 -160 -49 % -50 % Q101 Q201 Q301 -164 Q401 Q102 Net Sales index EBIT index EBIT%
Slide 94: Intervisio (Tiltgames), Ruokala.tv Q101-Q102
Intervisio (Tiltgames), Ruokala.tv Q101-Q102 indexed Q101 = 100 450 380 120 % 350 271 293 80 % 250 169144 194 143151 150 100100 30 % 40 % 50 -3 % 0% -50 -40 % -40 % -41 % -150 -80 % -250 -350 -122 % -120 % Q101 Q201 Q301 Q401 Q102 Net Sales index EBIT index EBIT%
Slide 95: Digi TV Update
Digi TV Update Mikko Räisänen
Slide 96: Digital TV; Dry Facts
Digital TV; Dry Facts • DTV is the final step in the digitalization of the TV broadcast process. All previous phases have been digitalized • DTV is by far the cheapest way to transmit video • DTV enables, in addition to low cost: • - better picture and sound quality • - more opportunity for interact
Slide 97: MTV / Alma Media in Digital TV – why?
MTV / Alma Media in Digital TV – why? • Money - speeding the switch from analogue transmission saves MTV well over 10 MEUR per year • Coverage - MTV is the leading commercial broadcaster; available via all transmission technologies • New potential revenue sources (subscriber, transaction etc based)
Slide 98: DTV progress and Alma Media's activities
DTV progress and Alma Media´s activities Receiver penetration substantially lower than expected 27 August 2001 launch was premature Activities: General cautiousness in DTV expenditure; in 2001: 3.7 MEUR, i.e. 50 % below original plan No digi-specific programming; analogue programmes are broadcast al
Slide 99: Outlook
Outlook • Plain DVB set-top boxes available since 12/01 • First MHP receivers in May, volumes in autumn 2002 • Commercial breakthrough within 2 – 3 years • Retail companies´ receiver penetration estimate • 12/02 = 170,000 (mainly plain DVB) • => Without extra effort, full digitalization will be seve
Slide 100: 2002 Plans and Numbers
2002 Plans and Numbers All TV broadcasters jointly: - promote integrated DTV set sales - - individual lucrative programmes broadcast on DTV only - - search for a financing model for DTV content ? MTV / Alma Media: • - Interactive MHP features; hibernation until commercial breakthrough … meanwhile on
Slide 101: Is there any future for digital TV?
Is there any future for digital TV? • There is no other future for TV; digitalization will take place Transmission will be digitalized TV sets will become more interactive The issue: timing ?? After 2006: - - Continuing analogue means major investments in - terrestrial network and increased maintena
Slide 102: Inter(Active) TV a Reality Today
Inter(Active) TV a Reality Today • TV visibility will generate 7 to 10 MEUR revenues for MTV/Alma Media in 2002 through mobile and phone channels • (Tilt, Formula 1, chat,…) Subscriber-based TV content distribution in broadband has started Running on TV: - Mail order concept Easy Pick (with Posti) -
Slide 103: Observations After First Weeks
Observations After First Weeks Juho Lipsanen
Slide 104: General intuition after first weeks in Alma Media
General intuition after first weeks in Alma Media Good spirit Fun Open minded Ready to change Dynamic Expecting teamwork Hungry FAST !
Slide 105: Feedback impression
Feedback impression 1998 merger integration done partly; still potential synergies weak financials cost reductions right trend => will continue cost conciousness need to be increased more cooperation and trust between divisions needed more courage and self-confidence needed HQ role and
Slide 106: Targets
Business Information Targets ALMA | MEDIA
Slide 107: Emotions
FAa tat i -. 72 Y er Gee Emotions ALMA | MEDIA
Slide 108: Targets
Targets NIG ALMA | MEDIA
Slide 109: Focus Areas
Focus Areas Management mindset New strategy process Cooperation opportunities Metrics (customers, financials, HR) Cost of capital Business control and analysis to be reviewed
Slide 110: Management targets 2002
Management targets 2002 GENERAL ECONOMIC simplicity profitability/ cost conciousness correctly allocated resources productivity developing and strengthening continuous improvement company culture WACC to be covered in every good spirit – one team business unit honesty cash flow b
Slide 111: Key Priorities - Metrics
Key Priorities - Metrics Customer Loyalty Profitable People Growth Motivation BUY – MAKE – SELL
Slide 112: 1Q and targets by divisions
1Q and targets by divisions Alpress Advertising sales decreased less than average Target: EBIT 2002 at 2001 level Continuous product improvement BIG Reduction in advertising income, increase in market share Target: EBIT 2002 at 2001 level, Focus on B2B cross media sales Broadcastin
Slide 113: 1Q and targets by divisions (cont.)
1Q and targets by divisions (cont.) Interactive Concentrating at profitable businesses Target 2002: positive result, continuous growth of net sales Commercialising new services #1 producer of internet based content and services in Finland Alprint increased EBIT: cost cutting program an
Slide 114: Financial targets 2002
Financial targets 2002 positive EBIT on group level improved cash flow reduced net debt balance sheet improvement good profitability Alpress BIG further improvements in profitability Broadcasting Interactive Alprint concession fee pending in parliament, net impact 7 MEUR 2002