Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q1 2008 Earnings Presentation
38 slides from Alma Media Oyj's earnings presentation, June 2008
Slide 1: Alma Media Q1 2008 Roadshow
Alma Media Q1 2008 Roadshow Teemu Kangas-Kärki, CFO Rauno Heinonen, IR May-June 2008
Slide 2: Presentation structure
Presentation structure • Alma Media in Brief • Media Markets in Finland • Alma Media’s Strategy • Q1 2008 Highlights Picture size 63 x 132mm • Outlook for 2008 100dpi • Q1 2008 Financial Review Alma Media Q1/2008 2
Slide 3: Finnish Newspapers, European Online Classified
Finnish Newspapers, European Online Classified + 29 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 Alma Media Q1/2008 3
Slide 4: Top 10 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 83 960 Maaseudun Tulevaisuus 83 6 04 81 593 Kaleva 82 03 7 81 363 Kauppalehti 81 3 3 7 7 4
Slide 5: Alma Media key figures 2004-2007
Extraordinary items Alma Media key figures 2004-2007 Net Sales, MEUR EBIT, MEUR 350 +9.0% 80 300 70 +14.0% 60 250 50 200 40 150 30 100 20 50 10 0 0 2004 2005 2006 2007 2004 2005 2006 2007 Alma Media Q1/2008 5
Slide 6: Net sales break down 2007, MEUR
Net sales break down 2007, MEUR Alma Media Newspapers Kauppalehti Group Marketplaces 328,9 230,6 70,1 30,9 Newspapers 68,8% Aamulehti 39,2% Kauppalehti 59,6% Etuovi 47,0% Kauppalehti Group 21,3% Iltalehti 24,0% Lehdentekijät 19,9% Monster 23,1% Marketplaces 9,2% Northern Newsp. 16,0% Kauppalehti 121
Slide 7: Sales and expenses break down 2007, MEUR
Sales and expenses break down 2007, MEUR Sales Advertising sales (48,3%) Sensitivity analysis Circulation sales (40,3%) 328,9 Other sales (10,7%) Factor Change % Impact Printing sales (0,7%) (Full year impact) on EBIT, MEUR Media advertising +1 1,6 Expenses Wages and salaries +1 -1,1 Content (29,4%)
Slide 8: Ownership structure, April 2008
Ownership structure, April 30 2008 % of shares Largest registered shareholders / votes 25 % 1. Oy Herttaässä Ab 11.2 2. Ilkka-Yhtymä Oyj 10.4 7 % 13 % 3. Varma Mutual Insurance 9.6 4. Sampo Life Insurance Company Limited 8.9 16 % 5. Danske Bank AS Helsinki Branch 8.2 8% 6. Kaleva Mutual Insurance Co
Slide 9: Media markets in Finland
Media markets in Finland
Slide 10: Newspapers dominate the Finnish media market
Source: TNS Gallup Oy, Adex Newspapers dominate the Finnish media market Advertising expenditure in Finland, MEUR Newspapers Magazines TV Radio Internet Others 1400 1315 Change 4.7 % +29.3 % 1200 1000 19.9 % +7.9 % 800 16.0 % +5.0 % 600 400 52.5 % +4.4 % 200 0 2000 2001 2002 2003 2004 2005 2006 2007
Slide 11: Newspapers are a solid business
Newspapers are a solid business • Steady reader base on Alma Media’s regionals – 97 % of regional newspapers on subscriber basis – 85 to 93 % of regional paper subscriptions are standing orders – demographic profile in line with the population – average readership coverage 70 % – early home delivery
Slide 12: Advertising sales growth Q1 2008
Advertising sales growth Q1 2008 Alma Media vs. market Market Alma Media Change, % Q1 2008 * Q1 2008 ** Newspapers -2.5 1.2 Magazines -0.9 - Television 6.0 - Radio 7.7 - Internet 30.4 38.2 TOTAL 1.8 5.8 Alma Media Q1/2008 12 * Source: TNS Media Intelligence ** Newspapers segment (excl. online servic
Slide 13: Advertising by branch Q1 2008
Advertising by branch Q1 2008 Change from Q1 2007 Advertising in Q1 2008 MEUR Retail 15,4 % Retail 67 Motor v. 0,4 % Motor vehicles 33 Food & bev 5,5 % Food & beverages 25 Tele 4,7 % Telecommunications 11 Houses 9,4 % Houses and premises 17 Entert. -5,9 % Entertainment 10 Tourism 6,7 % Tourism and t
Slide 14: Newspaper advertising by branch Q1 2008
Newspaper advertising by branch Q1 2008 Change from Q1 2007 Advertising in Q1 2008 MEUR Retail 53 Retail 13,0 % -5,0 % Motor vehicles 20 Motor v. Food & beverages 2 Food & bev. 7,2 % Telecommunications 5 Telecomm. 7,6 % Houses and premises 14 Houses 4,7 % Entert. -18,4 % Entertainment 5 Tourism -2,9
Slide 15: Strategy
Strategy
Slide 16: Media scene is transforming
Media scene is transforming • Online will become the third main media as media consumption changes • Media scene fragmentation supports printed newspapers • Competition from outside traditional media scene • Information overload favours journalism – Interactivity – Community & local news – Do this –
Slide 17: Company statements
Company statements • To promote individual freedom Mission and well-being 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 • Internationalization • Mergers & Acquisitions
Slide 18: 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 Alma Media Q1/2008 18
Slide 19: Marketplaces international expansion
Marketplaces international expansion Bovision.se City24.lt Motors24.lv City24.ru Motors24.lt Motors24.ee Objektvision.se City24.ee City24.lv City24.ua City24.hr City24.bg City24.pl 2005 Q1/06 Q2/06 Q3/06 Q2/07 Q4/07 Q1/08 Acquisitions underlined Alma Media Q1/2008 19
Slide 20: Q1 2008 Highlights
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Slide 21: Highlights Q1 2008
Highlights Q1 2008 • Advertising sales was good for larger regional papers, weaker for local newspapers and Iltalehti • Iltalehti suffered as the afternoon tabloid market weakened further • Kauppalehti: a strong quarter for both print and online • Marketplaces grew well, investments burdening EBIT a
Slide 22: Highlights Q1 2008
Highlights Q1 2008 Net sales, MEUR EBIT, MEUR 90 84,0 85,5 84,0 81,9 25 77,5 80 20,6 70 20 60 16,0 14,4 50 15 13,4 11,6 40 10 30 20 5 10 0 0 Q107 Q207 Q307 Q407 Q108 Q107 Q207 Q307 Q407 Q108 Alma Media Q1/2008 22
Slide 23: Newspapers Q1 2008
Newspapers Q1 2008 • Net sales at the level of Q1 2007: 57.3 MEUR (57.5 MEUR) – Advertising sales +1 % • Clear regional and local variations Picture size • Iltalehti’s advertising sales was a disappointment 63 x 132mm 100dpi – Circulation sales flat • Price increases in regional papers • Iltalehti’s
Slide 24: Kauppalehti Q1 2008
Kauppalehti Q1 2008 • Kauppalehti Group net sales grew 4.5 % to 18.5 MEUR (17.7 MEUR) – Kauppalehti’s net sales growth was in good 8.6 % pace Picture size 63 x 132mm • Kauppalehti newspaper circulation sales up 5.2 % 100dpi • Advertising sales of Kauppalehti family up 10.9 % – Kauppalehti.fi adverti
Slide 25: Marketplaces Q1 2008
Marketplaces Q1 2008 • Net sales grew 23.1 % to 9.1 MEUR • Domestic growth 24.6 % – Monster.fi and Etuovi.com leading growth • Foreign operations up 16.5 % Picture size – Real estate market flat in Baltic countries, City 24 63 x 132mm net sales growth slowing down with it 100dpi • Operating profit d
Slide 26: Outlook for 2008
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Slide 27: Outlook for 2008
Outlook for 2008 • Alma Media expects its net sales to increase from the previous year. The media market is expected to grow in 2008, but uncertainty will increase. • Developments in the media advertising and daily tabloid markets will be the major factors for the company’s result. • The comparable
Slide 28: Financial Review Q1 2008
Financial Review Q1 2008 Alma Media Q1/2008 28
Slide 29: Sales breakdown Q1 2008
Sales breakdown Q1 2008 Total Sales 84,0 MEUR Others Marketplaces 0,5% Printing sales Other sales 0,2% 10,7% 10,8% Kauppalehti group 22,0% Advertising Sales by Sales by sales segment type 50,1% Circulation sales 38,8% Newspapers 66,8% Alma Media Q1/2008 29
Slide 30: Key figures Q1 2008, MEUR
Extraordinary items Key figures Q1 2008, MEUR Net sales EBIT 100 25 +2.6% 80 20 60 15 40 10 20 5 0 0 Q107 Q207 Q307 Q407 Q108 Q107 Q207 Q307 Q407 Q108 Excl. Online Online sales
Slide 31: Net sales change by type, MEUR
Net sales change by type, MEUR Circulation Advertising 6,0 6,0 5,0 5,0 4,0 4,0 3,0 3,0 +5,8% 2,0 2,0 1,0 1,0 +0,8% 0,0 0,0 Q107 Q207 Q307 Q407 Q108 Q107 Q207 Q307 Q407 Q108 Alma Media Q1/2008 31
Slide 32: Net Sales Q1 2008 by business area, MEUR
Net Sales Q1 2008 by business area, MEUR 70 60 57,5 57,3 50 40 30 17,7 18,5 20 7,4 9,1 10 0 Newspapers Kauppalehti group Marketplaces NS Chg % -0,3 4,5 23,1 Circ Chg % 0,0 4,3 - Advert Chg% 1,0 8,1 26,0 Net sales Q1 2007 Net sales Q1 2008 Alma Media Q1/2008 32
Slide 33: EBIT by segment, MEUR
EBIT by segment, MEUR Newspapers Kauppalehti Group 14 3,0 12 2,5 -19,0% 10 +33,9% 2,0 8 1,5 6 1,0 4 2 0,5 0 0,0 Q406 Q107 Q207 Q307 Q407 Q108 Q107 Q207 Q307 Q407 Q108 Alma Media Q1/2008 33
Slide 34: EBIT by segment, MEUR
EBIT by segment, MEUR Marketplaces Others 2,0 10 1,6 8 -31,2% 6 1,2 4 0,8 2 0,4 0 0,0 -2 Q107 Q207 Q307 Q407 Q108 Q107 Q207 Q307 Q407 Q108 Alma Media Q1/2008 34
Slide 35: Key ratios in Q1 2008
Key ratios in Q1 2008 Equity ratio, % Gearing, % ROE % ROI % 58,4 80 50 60 60 42,6 53,8 69,8 70 40 50 50 46,5 43,2 60 30 40 40 50 20 39,5 40 30 30 10 30 20 20 0 20 -10 10 10 10 -15,2 0 -20 0 0 Q4/07 Q1/08 Q4/07 Q1/08 Q1/07 Q1/08 Q1/07 Q1/08 Alma Media Q1/2008 35
Slide 36: Cash flow and investments, MEUR
Cash flow and investments, MEUR 35 4 30 27,9 3 26,8 2 25 1 20 0 15 -1 -1,1 10 -2 5 -3 -3,0 0 -4 Q1 2007 Q1 2008 Q1 2007 Q1 2008 from operating activities gross investments before financing activities proceeds from sales of assets Alma Media Q1/2008 36
Slide 37: EPS and shareholders' equity per share (EUR)
EPS and shareholders’ equity per share (EUR) 0,20 2,0 0,16 0,02 1,6 0,12 1,2 0,94 0,08 0,8 0,15 0,16 0,13 0,04 0,4 0,64 0,64 0,00 0,0 Q1 2007 Q1 2008 Dec 2007 Mar 2008 EPS One time items Retained earnings Restricted equity Alma Media Q1/2008 37
Slide 38: Thank you!
Thank you! The photographs in this presentation were taken by Alma Media’s news photographers, originally published in the company’s newspapers.