Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Presentation (September 2012)
67 slides from Sanoma Oyj's investor presentation, September 2012
Slide 1: Sanoma in transformation
Sanoma in transformation Corporate Presentation September 2012
Slide 2: Market leader in chosen businesses and markets
Market leader in chosen businesses and markets • One of the leading media and Magazine publishing learning companies in Europe Television Newspaper publishing – #1 media company in the Netherlands Learning and Finland Online operations Finland Press distribution – Among top 2 educational players in
Slide 3: Sanoma's largest consumer media markets
Sanoma’s largest consumer media markets Net sales of main media companies (in EUR million) Netherlands (EUR million) Finland (EUR million) Sanoma Sanoma Telegraaf Media Groep Yle Alma Media Wegener MTV RTL NL TS-Yhtymä Audax Otavamedia De Persgroep NL 1 Keskisuomalainen 1 STER Edita 0 150 300 450 60
Slide 4: Learning – leading player in Europe
Learning – leading player in Europe #1 or #2 in markets where present Market: Sweden Market: Finland Market Position: #2 Market Position: #1 Sales: approx. EUR 20 m Sales: approx. EUR 50 m FTEs: approx. 60 FTEs: approx. 210 Size of market: approx. EUR 80 m Size of market: approx. EUR 90 m Market: Ne
Slide 5: ONE SANOMA Transformation
Strategy set & portfolio changes executed • Focus on consumer media and learning Strategic – Consumer media – value creation from leading multi-channel position focus – Learning – at the forefront of transformation ONE SANOMA Transformation • Acquisitions – SBS TV operations in the Netherlands and B
Slide 6: Focus on consumer media and learning
Focus on consumer media and learning 2010 Sales by operating segment by type of sales by geographic area Trade 12% 4% 14% 26% 23% Media 9% 46% 26% 51% Lear- 17% ning News 12% 16% 22% 9% 13% Advertising sales Learning Finland Other EU 2011 restated* pro forma** Subscription sales Retail/Press distrib
Slide 7: Organisational structure
Organisational structure CEO Harri-Pekka Kaukonen News Media Media Media Media Learning Pekka Soini Finland Netherlands Russia & CEE Belgium Jacques Anu Nissinen Dick Molman Heike Aime Eijkens Rosener van Hecke Digital operations Digital transformation John Martin Finance Kim Ignatius New operating
Slide 8: Success is built on strong local market positions and competencies
Success is built on our strong local market positions and our competencies • Strong relationships and brands • Inspiring content • Leading consumer insight • Media, sales and distribution power • Unique reach We differentiate ourselves from our peers through our deeper and broader consumer media por
Slide 9: Managing the digital transformation
Managing the digital transformation Drive performance of current business Multi-platform and digital growth Print (~60% of net sales) New Advertising consumer TV & Radio solutions Support functions (~15% of net sales) revenues Online Balance sheet (~10% of net sales) Learning solutions Learning mate
Slide 10: From platform based to multi-channel and cross-media
From platform based to multi-channel and cross-media Supplements and Traditional print media Online product extensions Brand Content Services to advertisers Customers Services to consumers Our know- how Paid Free Print publishing Mobile and tablet Application publishing TV devices Web publishing Key
Slide 11: Sanoma News
Sanoma News Net sales EBIT excluding non-recurring items EUR million EUR million 116 115 18 114 16 16 112 112 14 112 14 13 13 110 12 110 109 108 109 12 108 107 10 10 10 9 9 106 105 8 104 103 6 5 102 100 4 98 2 96 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 Sanoma in Transformation Septem
Slide 12: Total reach expanded
Total reach expanded Case Helsingin Sanomat & Ilta-Sanomat Helsingin Sanomat Ilta-Sanomat Single copy Subscription Single copy Subscription Total reach* (’000) Total reach* (’000) 2.000 2.500 2.000 1.500 1.500 1.000 1.000 0.500 0.500 0.000 0.000 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Prin
Slide 13: Funnel – framework for monetizing online visitors
Funnel – framework for monetizing online visitors Awareness/ inspiration CPM, CPC Product/service comparison CPC, CPL Purchase € CPS, sales € € € € € Content driven/ traffic sites Value of the visitor increases Transactional sites Competitive advantages: • Number of visitors • Web analytics know-how
Slide 14: Sanoma Media
Sanoma Media Net sales EBIT excluding non-recurring items EUR million EUR million 500 70 65 446 450 403 60 55 400 366 355 351 339 50 47 350 324 312 291 298 300 38 40 36 250 31 31 30 27 26 200 23 150 20 100 10 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 Sanoma in Transformation Septe
Slide 15: Successful in multi-channel
Successful in multi-channel Built on our competencies and strong local market positions Strong power ratios We have We know our Dominant Domain Built Trusted strong target market knowledge communities relation with brands groups positions advertisers Professional and creative staff Consumer/customer
Slide 16: TV viewing stays strong
TV viewing stays strong Average daily viewing time per individual in Europe 250 min/day 222 227 228 212 213 215 215 216 215 217 194 196 200 199 203 203 191 200 150 100 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Average daily viewing time Average daily v
Slide 17: Social- and Online-TV will activate TV viewers
Social- and Online-TV will activate TV viewers • In Finland Ruutu.fi going beyond Engagement with the show and additional content & information catch-up – paid content will be launched in autumn 2012 • In the Netherlands SBS will launch Full Media Format concept as well as 2nd screen applications Ru
Slide 18: Magazines will also be extended to digital
Magazines will also be extended to digital B2C Bundling B2C + B2B Content Library E-commerce Sanoma in Transformation September 2012 18
Slide 19: Sanoma Learning
Sanoma Learning Net sales EBIT excluding non-recurring items EUR million EUR million 140 50 46 46 42 121 121121 120 40 109 106 29 30 26 100 20 80 65 10 58 61 60 53 53 0 40 -5 -6 -10 20 -14 -14 -20 -20 0 -30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 Note: Q2/2012 EBIT includes a timing sh
Slide 20: Transformation still in infancy
Transformation still in infancy Sanoma at the forefront and well positioned Global textbook revenue by product type Sanoma learning business unit Pro forma net sales by type of sales 30.000 USD million 25.000 20.000 Print 15.000 56% 10.000 Services 5.000 Hybrid 4% 0.000 Pure digital 24% 2009 2010 20
Slide 21: Organic expansion opportunity
Organic expansion opportunity Total educational budget for the countries where we are present This part of the budget will hardly grow Learning materials because 1% or approx. EUR 0.75 billion • Commoditization of content Addressable • Demographic development Variable expenses (e.g. platforms, devel
Slide 22: Environment & Outlook
$3 Sanoma Environment & Outlook
Slide 23: Consumer confidence declining
Consumer confidence declining 25 20 15 6.1 10 5 0 -5 -10.0 -10 -15 -23.8 -20 -25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2011 2012 FIN BEL NL Source: European Commission, Business and Consumer Survey Results. Sanoma in Transformation September 2012 23
Slide 24: Advertising markets under pressure
Advertising markets under pressure Finland* Jan-Mar Apr-Jun Newspapers -2% -13% Magazines -2% -6% TV +5% -4% Online +14% +1% Total advertising market +1% -8% Netherlands** Jan-Mar Apr-Jun Belgium** Jan-Mar Apr-Jun Magazines -4% -19% Magazines -9% -8% TV -3% -5% TV +1% -11% Online +5% +6% Online +6%
Slide 25: Group outlook for 2012 revised
Group outlook for 2012 revised - due to deteriorating market conditions Group outlook for 2012 Consensus** Revised Previous 1-6/2012act FY2012est ‘At the previous year’s Net sales level or to grow slightly’ ‘To grow slightly’ +6.0% +1.9% EBIT, excluding non- recurring items, ‘Around 10 % of net ‘Aro
Slide 26: Group long-term financial targets
Group long-term financial targets Financial targets Net sales growth Faster than GDP growth in main operating countries EBIT margin excl. non-recurring items 12% Net debt / EBITDA* <3.5 Equity ratio 35-45% Gearing <100% Dividend per share >50% of EPS excl. non-recurring items CAPEX < EUR 100 million
Slide 27: §%Sanoma
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Slide 28: 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
Slide 29: Appendix: Financials
$3 Sanoma Appendix Financials
Slide 30: Income Statement
Income Statement 4–6/2011 1-6/2011 1-12/2011 EUR million 4–6/2012 restated* 1-6/2012 restated* restated* Net sales 646.5 592.6 1,190.1 1,122.8 2,378.1 EBITDA excl. non-recurring items 177.3 105.4 260.9 169.4 446.3 of net sales 27.4% 17.8% 21.9% 15.1% 18.8% Amortisations related to programming rights
Slide 31: Free cash flow
Free cash flow Cash flow from operations less cash CAPEX 4-6/2012 4–6/2011 1-6/2012 1-6/2011 1-12/2011 EUR million Group Group Group Group Group EBITDA excl. non-recurring items 178.6 114.5 265.8 180.7 469.5 TV programming costs -40.3 -9.7 -89.0 -24.8 -92.0 Prepublication costs -7.4 -6.5 -13.6 -11.9
Slide 32: Refinancing completed successfully
Refinancing completed successfully - more than EUR 1 billion done in 2012 Committed credit facilities profile* • Gross debt EUR 1,540.7 million and net debt As of 6 July 2012 (EUR million) EUR 1,456.6 million as of 30 June 2012 59 – Average interest rate just above 3% p.a. – Interest sensitivity** h
Slide 33: Group outlook for 2012 revised
Group outlook for 2012 revised - due to deteriorating market conditions Group outlook for 2012 Consensus** Revised on 1 Aug 2012 Previous 1-6/2012act FY2012est ‘At the previous year’s Net sales level or to grow slightly’ ‘To grow slightly’ +6.0% +1.9% EBIT, excluding non- recurring items, ‘Around 10
Slide 34: Group long-term financial targets
Group long-term financial targets Financial targets Net sales growth Faster than GDP growth in main operating countries EBIT margin excl. non-recurring items 12% Net debt / EBITDA* <3.5 Equity ratio 35-45% Gearing <100% Dividend per share >50% of EPS excl. non-recurring items CAPEX < EUR 100 million
Slide 35: Long-term Group financial targets
Long-term Group financial targets Financial target EBIT margin excl. non-recurring items 12% • Operational efficiency EBIT margin excl. non-recurring items, % • SBS turnaround • Efficiency in shared services 12% – ICT infrastructure, centralised 10.4 procurement function, financial services, 9.8 9.4
Slide 36: Long-term Group financial targets
Long-term Group financial targets Financial targets Equity ratio 35–45% Gearing <100% Equity ratio, % Gearing, % 45 46 106 40 41 <100% 96 39 37 35-45% 79 79 64 58 2007 2008 2009 2010 2011 Q1/2012 2007 2008 2009 2010 2011 Q1/2012 Equity ratio Gearing Sanoma in Transformation September 2012 36
Slide 37: Long-term Group financial targets
Long-term Group financial targets Financial target Net debt / EBITDA* <3.5 4.3 • Gross debt EUR 1,540.7 million and net debt EUR 4.0 1,456.6 million (30 June, 2012) <3.5 3.3 2.8 2.9 • Inaugural EUR 400 million 5-year eurobond issued 2.6 2.5 <3.5 under investment grade documentation 2.0 2.1 2.0 1.6 1
Slide 38: Long-term Group financial targets
Long-term Group financial targets Financial target *FCF = Free Cash Flow is Cash Flow from Operations Dividend per share less Cash CAPEX. >50% of EPS excl. non-recurring items DPS in relation to EPS reported and EPS excl. Cash flow from operations > dividends paid non-recurring items, % EUR 1.75 125
Slide 39: Appendix: Additional key information
Appendix 2 Additional key information
Slide 40: Successful Integration
Successful Integration Steps to a leading media company 1999: Sanoma and WSOY merged and listed on the Helsinki Stock Exchange 2001: VNU Consumer Information Group acquisition Magazine division with operations in nine countries 2003: Rautakirja merged into Sanoma 2004: Malmberg and Van In acquisitio
Slide 41: Organisational structure
Organisational structure CEO Harri-Pekka Kaukonen News Media Media Media Media Learning Pekka Soini Finland Netherlands Russia & CEE Belgium Jacques Anu Nissinen Dick Molman Heike Aime Eijkens Rosener van Hecke Digital operations Digital transformation John Martin Finance Kim Ignatius New operating
Slide 42: Sanoma Media Netherlands
Sanoma Media Netherlands • Net sales 2011: EUR 642 million, pro forma 2011: EUR 818 million • Has an extensive portfolio with over a 100 different brands in print, TV and online • Is the dominant player in the Dutch magazine market – Libelle, Margriet, LINDA., Donald Duck, Story, Veronica magazine •
Slide 43: Sanoma Media Finland
Sanoma Media Finland • Net sales 2011: EUR 310 million • Over 40 quality titles and a readership of over 3 million – Finland’s number-one publisher of children’s and juvenile publications – Popular titles include Aku Ankka (Donald Duck), Kodin Kuvalehti, ET-lehti, Me Naiset • No 2 commercial TV play
Slide 44: Sanoma Media Belgium
Sanoma Media Belgium • Net sales 2011: EUR 209 million, pro forma 2011: EUR 235 million • Operates in both the Dutch and French speaking markets • Market leader in women's magazines and TV titles (Libelle, TeVe-Blad, Story) • Has a number of popular internet sites in Belgium • 33% of De Vijver – Fre
Slide 45: Sanoma Media Russia & CEE
Sanoma Media Russia & CEE • Net sales 2011: EUR 213 million • Operates in nine markets: Bulgaria, Croatia, the Czech Republic, Hungary, Romania, Russia, Serbia, Slovenia and Ukraine • Publishes over 140 consumer magazines mainly targeted at women – Cosmopolitan, Men’s health, Harper’s Bazaar, Nation
Slide 46: Sanoma Media key figures
Sanoma Media Key figures EUR million 4-6/12 1-3/12 10-12/11 7-9/11 4-6/11 1-3/11 FY 2011 Net sales 402.7 365.8 445.6 355.5 323.7 291.1 1,415.8 The Netherlands 208.1 171.6 232.2 174.0 130.6 105.3 642.0 Finland 76.7 77.4 86.2 70.0 79.4 74.2 309.7 Russia & CEE 50.1 49.0 56.7 50.8 54.3 51.4 213.1 Belgiu
Slide 47: TV – net sales and EBIT seasonality
TV – net sales and EBIT seasonality 2009–2011 average for TV* Net sales split EBIT** split 12% 22% 29% 32% 37% 28% 21% 19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. Sanoma in Transformation September 201
Slide 48: Magazines – net sales and EBIT seasonality
Magazines – net sales and EBIT seasonality 2009–2011 average for Magazines* Net sales split EBIT** split 19% 24% 27% 29% 27% 25% 24% 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Include Dutch, Finnish, Belgium and Russian operations. **Excluding non-recurring items. Sanoma in Transformation September 2012 48
Slide 49: Sanoma Media
Sanoma Media Net sales EBIT excluding non-recurring items EUR million EUR million 500 70 65 446 450 403 60 55 400 366 355 351 339 50 47 350 324 312 291 298 300 38 40 36 250 31 31 30 27 26 200 23 150 20 100 10 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 Sanoma in Transformation Septe
Slide 50: Sanoma News
Sanoma News • Net sales 2011: EUR 436 million • Finland represents 99% of the segment’s sales • Helsingin Sanomat and Ilta-Sanomat are the leading newspapers in Finland • Metro and Vartti are the leading free sheets in Finland • Etelä-Saimaa, Kouvolan Sanomat and Kymen Sanomat are the leading region
Slide 51: Sanoma News key figures
Sanoma News Key figures EUR million 4-6/12 1-3/12 10-12/11 7-9/11 4-6/11 1-3/11 FY 2011 Net sales 106.8 110.0 112.0 103.2 112.2 108.4 435.8 Helsingin Sanomat 56.2 59.3 60.8 55.3 61.2 61.2 238.5 Ilta-Sanomat 22.0 21.2 21.6 21.6 22.2 19.1 84.4 Other publishing 24.3 25.2 25.4 22.9 25.0 23.7 97.0 Other
Slide 52: News – net sales and EBIT seasonality
News – net sales and EBIT seasonality 2009–2011 average for News Net sales split EBIT* split 25% 22% 26% 28% 21% 24% 25% 29% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. Sanoma in Transformation September 2012 52
Slide 53: Sanoma News
Sanoma News Net sales EBIT excluding non-recurring items EUR million EUR million 116 115 18 114 16 16 112 112 14 112 14 13 13 110 12 110 109 108 109 12 108 107 10 10 10 9 9 106 105 8 104 103 6 5 102 100 4 98 2 96 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 Sanoma in Transformation Septem
Slide 54: Sanoma Learning
Sanoma Learning • Net sales 2011: EUR 343 million • One of Europe’s largest providers of learning materials and solutions operating in Finland, Hungary, Belgium, the Netherlands, Poland and Sweden • Among top 2 learning players in its all 6 operating countries • The roots of our educational publishi
Slide 55: Sanoma Learning key figures
Sanoma Learning Key figures EUR million 4-6/12 1-3/12 10-12/11 7-9/11 4-6/11 1-3/11 FY 2011 Net sales 120.8 53.4 52.7 121.2 108.6 60.7 343.1 Learning 109.3 34.2 34.7 100.2 87.4 34.3 256.6 Other businesses 12.5 21.0 18.7 22.4 22.6 28.0 91.7 Eliminations -1.0 -1.7 -0.8 -1.4 -1.5 -1.7 -5.3 EBIT excludi
Slide 56: Sanoma learning business unit
Sanoma learning business unit Pro forma Hungary 8% Sweden 8% Netherlands 28% Belgium 11% Finland 19% Poland 26% Sanoma in Transformation September 2012 56
Slide 57: Learning – net sales and EBIT seasonality
Learning – net sales and EBIT seasonality 2009–2011 average for learning* Net sales split EBIT** split in relative terms 14% 13% 33% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes learning business of the Learning segment only. **Excluding non-recurring items. Sanoma in Transformation September 2012 57
Slide 58: Sanoma Learning
Sanoma Learning Net sales EBIT excluding non-recurring items EUR million EUR million 140 50 46 46 42 121 121121 120 40 109 106 29 30 26 100 20 80 65 10 58 61 60 53 53 0 40 -5 -6 -10 20 -14 -14 -20 -20 0 -30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 Note: Q2/2012 EBIT includes a timing sh
Slide 59: Sanoma Trade
Sanoma Trade • Net sales 2011*: EUR 229 million • Finland’s largest trade services organisation Lehtipiste supplies newspapers and magazines to more than 8,000 outlets • Material divestments done – Movie operations were divested at the end of April 2011 – Bookstore operations in Finland were diveste
Slide 60: Sanoma Trade
Sanoma Trade Net sales* EBIT excluding non-recurring items* EUR million EUR million 90 6 82 4.8 80 5 70 4 3.3 61 59 3 60 1.9 2 50 1 40 0 30 27 -0.3 24 24 -1 20 -2 -1.4 10 -3 -2.9 0 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 2012 * 2011 figures restated. Kiosk operations in Finland, Estonia and Lithua
Slide 61: Sanoma Trade key figures
Sanoma Trade Key figures* EUR million 4-6/12 1-3/12 10-12/11 7-9/11 4-6/11 1-3/11 FY 2011 Net sales 23.7 23.7 26.9 61.0 59.1 81.8 228.7 Kiosk operations 0.0 7.3 6.9 6.7 20.9 Trade services 23.0 21.2 23.2 24.4 27.3 28.8 103.6 Bookstores 0.6 2.5 3.7 29.7 18.8 24.8 77.0 Movie operations 0.0 0.0 6.5 21.
Slide 62: Appendix: About owners and coverage
Appendix 3 About owners and coverage
Slide 63: Sanoma – largest shareholders
Sanoma – largest shareholders % of shares 31 August 2012 and votes 23% Aatos Erkko (of which through Asipex Ab 7.25%)* 23.02 Robin Langenskiöld 7.54 Rafaela Seppälä 6.31 Antti Herlin (Holding Manutas Oy: 3.75%, 8% 4.64 56% Security Trading 0.88%, personal: 0.02%) Helsingin Sanomat Foundation 3.50 6%
Slide 64: Analyst coverage
Analyst coverage ABN Amro Evli Bank Pareto Securities / Öhman Maurits Heldring Mikko Ervasti Teemu Vainio tel. +31 20 344 1191 tel. +358 9 4766 9205 tel. +358 9 8866 6038 abnamro.com Evli.com Ohman.se Carnegie Investment Bank FIM Pohjola Matti Riikonen Mona Grannenfelt Kimmo Stenvall tel. +358 9 618
Slide 65: Sanoma's IR team
Sanoma’s IR team Mr Martti Yrjö-Koskinen tel. +358 40 684 4643 [email protected] 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]
Slide 66: 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
Slide 67: §%Sanoma
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