Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — SanomaWSOY — H1 2008 Earnings Presentation
29 slides from Sanoma Oyj's earnings presentation, Jul 31, 2008
Slide 1: Interim Report 1–6/2008
Interim Report 1–6/2008 President and CEO Hannu Syrjänen 31 July 2008
Slide 2: Key Figures
Key Figures
Slide 3: Key Figures
Key Figures EUR million 1–6/2008 1–6/2007 Ch % 1–12/2007 Net sales 1,452.8 1,408.0 3.2 2,926.3 Operating profit 171.2 186.9 -8.4 343.8 % of net sales 11.8 13.3 11.7 Operating profit excluding major non-recurring 146.2 151.5 -3.5 303.5 capital gains % of net sales 10.1 10.8 10.4 Balance sheet total 3
Slide 4: SanomaWSOY
SanomaWSOY Net sales, MEUR 2007 2008 Operating profit, MEUR 2007 2008 900 140 133.0 799.6 Capital gains 769.8 800 744.4 718.6 120 683.1 700 663.7 98.5 100 600 88.5 500 80 72.7 68.3 400 60 54.0 300 40 200 20 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen | 31.7.2008 | 4
Slide 5: Net Sales by Division and Geographic Area
Net Sales by Division and Geographic Area 1–6/2008 (1–6/2007) Net sales EUR 1 452.8 million By division By geographic area Other countries Rautakirja 5% (5%) 27% (27%) Sanoma Finland Magazines 51% (50%) 40% (41%) SWelcom 5% (5%) Other EU countries SanomaWSOY 44% (45%) Education and Books 11% (11%) S
Slide 6: Advertising Sales
Advertising Sales % of net sales 1–6/2008 1–6/2007 Sanoma Magazines 33% 30% Sanoma 55% 54% SWelcom 51% 57% The Group 26% 25% Hannu Syrjänen | 31.7.2008 | 6
Slide 7: Digital Business Sales
Digital Business Sales EUR million Online TV and radio % of net sales % 100 12 10 80 8 60 6 40 4 20 2 0 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Hannu Syrjänen | 31.7.2008 | 7
Slide 8: Market Environment
Market Environment
Slide 9: Changes in Market Research Institutions’ Forecasts, March vs. June
Changes in Market Research Institutions’ Forecasts, March vs. June Nominal GDP (LCU) Private consumption Advertising Expenditure Country (Change, % yoy) (% real change pa) (Change, % yoy) March June March June March June 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008
Slide 10: Advertising Sales in Finland
Advertising Sales in Finland EUR 1,000 6/2008 Ch % 1–6/2008 Ch % NEWSPAPERS 47,905 -0.9 326,524 0.1 TELEVISION 18,733 4.9 139,745 5.7 MAGAZINES 12,511 5.1 84,354 1.2 ONLINE 5,322 27.2 34,653 28.3 OUTDOOR 4,406 9.7 23,801 9.6 RADIO 5,214 4.3 23,257 7.9 CINEMA 322 123.3 1,551 66.9 Total 94,413 3,2 633
Slide 11: Advertising Sales in the NL
Advertising Sales in the NL EUR 1,000 1–5/2008 Ch % TELEVISION 1,157,051 2.2 NEWSPAPERS 363,190 7.3 UNSOLICITED ADV MATERIAL 219,853 4.5 RADIO 214,315 8.9 MAGAZINES 208,358 -1.5 OUTDOOR 116,028 13.9 INTERNET (1-4/2008) 68,180 6.8 CINEMA 4,206 -34.2 Total 2,354,162 4.0 Gross figures, Change-% to prev
Slide 12: Key Events
Pobzashop = MOBIL PORTAL oy udtori Key Events
Slide 13: Events in 2Q08
Events in 2Q08 Product launches and acquisitions, digital • TV and web video guide Zie.nl, the Netherlands • Product comparison site Hintaseuranta.fi extended, Finland • eWebsite.com Goes Global, Czech • Online directory for those requesting and supplying domestic work Työtori, Finland • Social shop
Slide 14: Events in 2Q08
Events in 2Q08 Product launches, print • Renewal of fashion title Beau Monde, Romania • National Geographic Kids, Bulgaria • Women’s magazine Marie Claire, Czech • Health magazine Zdraven Journal, Bulgaria • National Geographic Traveler, Czech • Women’s magazine Marie Claire, Romania • Relaunch of t
Slide 15: Events in 2Q08
Events in 2Q08 Acquisitions • Construction communications and consumer marketing expert Suorakanava, Finland • Publishing house Mama Media, Serbia • Internet company Net Info, Bulgaria • Publishing house Lux Media, Russia Divestment • SWelcom’s holding Maxisat, Finland • Movie magazine Preview, the
Slide 16: Divisional Overview
Divisional Overview
Slide 17: Sanoma Magazines
Sanoma Magazines Net sales, MEUR 2007 2008 Operating profit, MEUR 2007 2008 400 70 Capital gains 352.4 61.3 350 318.5 60 308.2 290.4 300 287.1 285.5 48.2 50 46.6 250 40 37.2 200 32.1 30.4 30 150 20 100 50 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen | 31.7.2008 | 17
Slide 18: Sanoma Magazines 1–6/2008
Sanoma Magazines 1–6/2008 EUR million 1–6/2008 1–6/2007 Ch % 1–12/2007 Net sales 603.9 595.3 1.5 1,238.1 Sanoma Magazines Netherlands 246.9 256.4 -3.7 539.8 Sanoma Magazines International 146.9 134.3 9.4 283.4 Sanoma Magazines Belgium 109.7 108.3 1.3 216.6 Sanoma Magazines Finland 102.6 98.7 4.0 202
Slide 19: Sanoma
Sanoma Net sales, MEUR 2007 2008 Operating profit, MEUR 2007 2008 140 25 121.1 124.6 122.4 120.8 119.8 120 114.0 19.6 20 17.9 17.3 100 17.2 14.7 15 13.6 80 60 10 40 5 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen | 31.7.2008 | 19
Slide 20: Sanoma 1–6/2008
Sanoma 1–6/2008 EUR million 1–6/2008 1–6/2007 Ch % 1–12/2007 Net sales 242.0 242.2 -0.1 480.8 Helsingin Sanomat 145.3 140.3 3.5 278.9 Ilta-Sanomat 46.6 48.3 -3.4 94.8 Other publishing 45.7 49.0 -6.7 97.5 Other 76.6 76.4 0.2 152.6 Eliminations -72.2 -71.8 0.5 -143.0 Operating profit 32.6 36.8 -11.4 6
Slide 21: SanomaWSOY Education and Books
SanomaWSOY Education and Books Net sales, MEUR 2007 2008 Operating profit, MEUR 2007 2008 120 40 110.5 104.8 97.0 29.8 100 30 27.9 26.4 80 68.5 20 58.3 60 52.2 10 40 0 20 -4.3 -6.5 -6.6 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen | 31.7.2008 | 21
Slide 22: SanomaWSOY Education and Books 1–6/2008
SanomaWSOY Education and Books 1–6/2008 EUR million 1–6/2008 1–6/2007 Ch % 1–12/2007 Net sales 168.8 157.0 7.5 322.5 Educational publishing 108.4 98.4 10.2 197.7 Publishing 48.3 47.1 2.5 97.3 Other 23.3 22.9 1.8 51.1 Eliminations -11.3 11.4 -1.3 -23.7 Operating profit 22.0 23.3 -5.4 44.5 % of net sa
Slide 23: SWelcom
SWelcom Net sales, MEUR 2007 2008 Operating profit, MEUR 2007 2008 50 7 6.3 45 42.5 40.5 40.9 6 40 5.4 35.2 35.4 35 32.8 5 30 4.0 4.0 4 3.5 25 2.9 3 20 15 2 10 1 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen | 31.7.2008 | 23
Slide 24: SWelcom 1–6/2008
SWelcom 1–6/2008 EUR million 1–6/2008 1–6/2007 Ch % 1–12/2007 Net sales 81.4 70.6 15.3 146.0 TV and radio 47.1 40.4 16.6 83.2 Other 34.7 30.7 13.3 63.6 Eliminations -0.4 -0.4 -5.9 -0.8 Operating profit 10.4 6.9 50.6 15.8 % of net sales 12.8 9.8 10.8 Operating profit excluding major 10.4 6.9 50.6 15.
Slide 25: Rautakirja
Rautakirja Net sales, MEUR 2007 2008 Operating profit, MEUR 2007 2008 300 30 Capital gains 241.1 250 23.1 203.2 214.5 202.7 201.3 192.4 200 20 150 13.0 10.6 9.0 9.9 100 10 7.4 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hannu Syrjänen | 31.7.2008 | 25
Slide 26: Rautakirja 1–6/2008
Rautakirja 1–6/2008 EUR million 1–6/2008 1–6/2007 Ch-% 1–12/2007 Net sales 405.8 393.7 3.1 849.3 Kiosk operations 197.1 186.2 5.8 385.5 Press distribution 118.4 117.2 1.0 245.5 Bookstores 55.0 52.7 4.4 140.3 Entertainment 43.8 45.4 -3.6 95.9 Eliminations -8.5 -7.9 7.9 -18.0 Operating profit 17.3 19.
Slide 27: Outlook for 2008
Outlook for 2008
Slide 28: Group’s Outlook for 2008
Group’s Outlook for 2008 Outlook • Net sales to grow, albeit at a somewhat slower rate than last year • Operating profit excluding major non-recurring capital gains continues to improve • In 2007, operating profit excluding capital gains totalled EUR 303.5 million and net sales grew by 6.7% Hannu Sy
Slide 29: Content for Your Life
Content for Your Life www.sanomawsoy.com