Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Day (November 2008)
29 slides from Alma Media Oyj's investor day presentation, Nov 6, 2008
Slide 1: Alma Media Strategy update
Alma Media Strategy update Kai Telanne, President & CEO Alma Media Capital Markets Day in Helsinki November 6, 2008 Nov 6, 2008 1
Slide 2: Presentation structure
Presentation structure • Review of operations and strategy • Media market and Alma Media’s market position • Strategy going forward • Alma Media & economic downturn Picture size 63 x 132mm • M&A outlook 100dpi Nov 6, 2008 2
Slide 3: Finnish Newspapers, European Online Classified
Finnish Newspapers, European Online Classified + 30 local newspaper and free sheet titles Regional newspapers Mascus license countries Net sales 2007: 329 MEUR - - EBIT-% 2007 : 19.6 % - - Listed in OMX Helsinki (ALN1V, Mid Cap), 100 % free float Nov 6, 2008 3
Slide 4: Implementing the strategy
Implementing the strategy Constant renewal Chaining Product development 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 Nov 6, 2008 4
Slide 5: Key figures 2004-2008/Q3
Key figures 2004-2008/Q3 = extraordinary items 350 70 Net sales 300 254.7 EBIT 60 250 50 MEUR MEUR 200 40 150 +4,6% 30 100 20 -11,3% 50 10 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Q1-Q3 Q1-Q3 30 20 % Net sales EBIT % 25 15 % change (y-o-y) 20 MEUR 15 10 % 10 5% 5 +4,6% na. 0 0% 2004 200
Slide 6: The prices of media company shares and Alma Media's market cap
The prices of media company shares and Alma Media’s market cap 13,0 930 12,0 Alma Media OMX 25 830 11,0 SanomaWSOY 10,0 Talentum 730 9,0 Keskisuomalainen 630 EUR 8,0 MEUR 7,0 530 6,0 430 5,0 330 4,0 3,0 230 29.4.2005 30.6.2005 30.9.2005 31.12.2005 31.3.2006 30.6.2006 30.9.2006 31.12.2006 31.3.2007 3
Slide 7: Finnish media market and Alma Media's market position
Finnish media market and Alma Media’s market position Nov 6, 2008 7
Slide 8: Top newspapers in Finland
Top 10 newspapers in Finland Circulation in 2007 and 2006 419 7 91 Helsingin Sanomat 426 117 17 6 531 Ilta-Sanomat 1 86 462 139 165 Aamulehti 1 38 258 131 150 Iltalehti 1 3 3 007 112 419 Turun Sanomat 112 360 86 57 7 Kauppalehti 81 3 3 7 83 960 Maaseudun Tulevaisuus 83 6 04 81 593 Kaleva 82 03 7 7 4
Slide 9: Total circulation of Daily newspapers
Total circulation of Daily Total circulation, number Change, % newspapers 1 800 000 10 % 1 600 000 • The total circulation of 7-day dailies is about 1.6 million 1 400 000 copies. During 2000-2008 it has 1 200 000 fallen by 66.000 copies (-3.9 %). 1 000 000 0% 800 000 • During 2007 the total circulat
Slide 10: Daily newspapers: Reach and issues read
Daily newspapers: Reach and Reach during one week, % issues read Issues read, number 100 10 92 92 87 89 90 88 90 81 83 9 • During one week 87 % of 80 73 8,3 8,3 8 7,9 7,9 Finnish people read a 7-day 70 7,2 7 7,4 daily newspaper (3.8 million Issues read 60 6,2 6,4 6 Raech people). 50 5,3 5 40 4 30 20
Slide 11: Reach development
Reach development The 27 original papers in Kärkimedia Reach during one week, % population: 15 – 24 – year-olds Read issues, number 100 10 • 81% of young people read 7-day 90 87 84 83 82 9 80 79 newspapers in a week (National 80 76 8 Media Survey KMT 2007). 70 7 60 6,4 Issues read 6,2 6,2 6,1 6,0 5,
Slide 12: Circulation development 2002-2007
Circulation development 2002-2007 Change 2007/2006 and 2007/2002 1 year 5 years 6% Alma Media Other 3,8 % Ilta- 4% regional newspapers regional newspapers Sanomat 2% 0,30 % 0,4 % 0% -2 % -0,80 % -1,40 % -4 % Iltalehti -3,2 % -6 % -5,30 % -8 % -10 % -12 % -14 % -13,8 % -16 % Source: Finnish Audit Bur
Slide 13: Weekly site rankings of Finnish websites
J J SUOMEN WEB-SIVUSTOJEN VITKKOLUVUT (WEEKLY SITE RANKINGS) | Liity TNS Metrix-mittaukseen | TNS Gallupin online-mittaus ja yksityisyyden suoja Vanha tulospalvelu Viikko: Kategoria: | -Kaikki- ¥) Site Browsers Browsers Sess Sess¥ PI PI% Freq 1) + Iltalehti 1652269 0.7% 98768842 -1,24 47160332 -3,34
Slide 14: Newspapers dominate the Finnish ad market
Source: TNS Gallup Oy, Adex Newspapers dominate the Finnish ad market Advertising expenditure in Finland, MEUR Newspapers Magazines TV Radio Internet Others 1400 1 315 4,3 % 1200 1000 21,8 % 5.5 % 800 13,2 % 21.7 % 600 12.8 % 400 53,6 % 52.2 % 200 0 2000 2001 2002 2003 2004 2005 2006 2007 Q1- Q3/200
Slide 15: Advertising sales growth Q1-Q3 2008
Advertising sales growth Q1-Q3 2008 Alma Media vs. market Market Alma Media Change, % Q1-Q3 08 * Q1-Q3 08 ** Newspapers -1.1 3.6 Magazines 2.0 - Television 6.1 - Radio 6.4 - Internet 27.5 30.8 TOTAL 2.7 7.1 Nov 6, 2008 15 * Source: TNS Media Intelligence ** Newspapers segment (excl. online services)
Slide 16: Strategy going forward
Strategy going forward Nov 6, 2008 16
Slide 17: Company statements
Company statements • To promote individual freedom Mission and wellbeing 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 & Acquisitions
Slide 18: The Hybrid Media
- a, \\ N c vy) . ) e Hybrid Media
Slide 19: Online visitor development 2006 - 2008
Online visitor development 2006 - 2008 Maakuntalehdet Markkinapaikat Kauppalehti Iltalehti Telkku Vuodatus * 3 500 000 3 000 000 2 500 000 CAGR 34 % p.a 2005-2007 2 000 000 1 500 000 Satakunnan Kansa and Northern 1 000 000 Newspapers followed by TNS Metrix since Q1/2007. SPS papers not followed by T
Slide 20: Online development areas
On line 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
Slide 21: Online drives European expansion
Online drives European expansion • Our market leader position in Finland is the source of know- how in developing our international services Mascus license countries Nov 6, 2008 21
Slide 22: Online will grow into a major business
Online will grow into a major business 100 % 90 % 80 % 70 % 60 % 50 % +31,9% 40 % 30 % 20 % 10 % 0% 2006 2008 2010 2012 2014 2016 Net sales online Net sales paper Nov 6, 2008 22 NB. For illustrative purposes only. Assumptions: newspapers’ organic growth 5 %, online business growth 30 % (CAGR).
Slide 23: Alma Media & the economic downturn
Alma Media & the economic downturn Nov 6, 2008 23
Slide 24: GDP and advertising sales development
GDP and advertising sales development 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008e -2 % -4 % -6 % -8 % GDP Media advertising Newspaper advertising Source: TNS Gallup (2008:1-9, GDP growth estimate 2008: 2.5 %) Nov 6, 2008 24
Slide 25: Customer statements
Customer statements According to the Advertising Barometer 2009 survey, advertisers are confident about next year and have no intention to cut their spending. Of the respondents, 43% plan to increase advertising and 10% plan to decrease it. This gives a change balance of +33 %. Out of media types, t
Slide 26: Sales and expenses break down Q1-Q3 2008
Sales and expenses break down Q1-Q3 2008, MEUR Sales Advertising sales (49,4%) Sensitivity analysis Circulation sales (39,2%) 254,7 Other sales (11,1%) Factor Change Impact Printing sales (0,3%) (Full year impact) (%-point) on EBIT, MEUR Media advertising +1 1,3 Expenses Wages and salaries +1 -0,9 C
Slide 27: Opportunities in M&A?
Opportunities in M&A? Nov 6, 2008 27
Slide 28: Short M&A history
Short M & A history Kauppalehti 121 Vuodatus.net Kokkolan Sanomat Motors24 Objektvision.se Telkku.com Bovision.se Tampereen City24.ee ePortti City24.pl Ykkösjakelu (40 %) Rannikkoseutu SBV Acquisitions 2005 2006 2007 2008 Divestments Broadcasting Kainuun Sanomat division Print Nov 6, 2008 28
Slide 29: Your questions, please!
Your questions, please! Nov 6, 2008 29