Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Shareholder Meeting (2022)
26 slides from Sanoma Oyj's shareholder meeting presentation, Jun 18, 2022
Slide 1: 2021: Year of strong growth and improved sustainability performance
AGM 2022 2021: Year of strong growth and improved sustainability performance Susan Duinhoven, President & CEO
Slide 2: Successful year with strong growth in a pandemic environment
Successful year with strong growth in a pandemic environment Strong operational resilience also in the second year of corona pandemic Integration of the acquired businesses proceeded successfully Digitalisation continued to support business transformation ESG performance improved 2 AGM 2022 - CEO's
Slide 3: 2021: Strong growth in net sales and operational EBIT in both businesses
2021: Strong growth in net sales and operational EBIT in both businesses Net sales Comparable net Operational EBIT Operational EBIT Free cash Net debt / sales growth excl. PPA margin excl. PPA flow Adj. EBITDA 1,252m€ 7% 197m€ 15.8% 140m€ 2.4 (2020: 1,062) (2020: -4%) (2020: 157) (2020: 14.7%) (2020
Slide 4: Organic growth and Santillana acquisition drove net sales…
LEARNING FY 2021 Organic growth and Santillana acquisition drove net sales… ▪ Net sales grew by 28% to 637m€ (2020: 500) – Comparable growth was 7% (2020: 5%), above our long-term target of 2−5% ▪ Learning material sales grew across all markets, strongest growth in Poland and the Netherlands – In Po
Slide 5: … and resulted in strong profitability improvement
LEARNING FY 2021 … and resulted in strong profitability improvement Long-term ▪ Operational EBIT excl. PPA Solid organic growth and earnings improvement financial targets grew by 40% to 134m€ m€ Margin (2020: 96) following the net 700 25% above sales growth 600 23% 20% – Majority of the improvement
Slide 6: Santillana integration progressed well in 2021
LEARNING CASE Santillana integration progressed well in 2021 ▪ Over 500 new colleagues joined Sanoma on 31 Dec 2020 with the acquisition of Santillana in Spain ▪ The integration has progressed according to plan and Santillana’s first year as part of Sanoma was successful ▪ Achieving of the targeted
Slide 7: Solid net sales growth…
MEDIA FINLAND FY 2021 Solid net sales growth… ▪ Net sales grew by 9% to 615m€ (2020: 563), organic growth 7% ▪ Solid growth in subscription sales – Number of HS subscriptions grew by 1% y-o-y, more than 70% of HS subscriptions generate digital revenues – Number of Ruutu+ subscriptions grew by 15% y-
Slide 8: …and corresponding earnings improvement
MEDIA FINLAND FY 2021 …and corresponding earnings improvement Long-term ▪ Operational EBIT excl. PPA Solid top-line and profitability development financial targets m€ increased by 10% to 74m€ Margin 700 20% (2020: 67), margin stable at 15% 12−14% 11.9% (2020: 11.8%) 600 10% – Earnings improvement dr
Slide 9: Integration of the regional news media business was finalised in 2021
MEDIA FINLAND CASE Integration of the regional news media business was finalised in 2021 ▪ Leading regional newspapers Aamulehti and Satakunnan Kansa as well as 13 smaller newspapers ▪ Over 350 new employees joined Sanoma – great Full synergies of cultural fit 13m€ ▪ Largest synergies from operation
Slide 10: Passionate and dedicated people are key to our success
Passionate and dedicated people are key to our success ▪ We employ more than 5,000 people in 11 countries ▪ Coronavirus pandemic continued to impact our way of working – our initial focus was in ensuring health and safety, and providing best tools and options for the ‘hybrid’ working model ▪ Annual
Slide 11: Equal, diverse and inspiring workplace creates better results
Equal, diverse and inspiring workplace creates better results ▪ In our 2021 survey, equal opportunities was rated at 7.3 – our target is to be above 7.6 ▪ We take action to enhance diversity, equality and inclusion in 2022 and beyond Good gender balance, long-term target to Employees across all age
Slide 12: Management team focused on growing Sanoma further
Management team focused on growing Sanoma further Sanoma Executive Management Team Alex Green the new CFO as of 1 March 2022 ▪ Alex Green is – responsible for the Group’s Finance Functions – member of Sanoma’s Executive Management Team – reporting to the President & CEO Susan Duinhoven Susan Duinhov
Slide 13: Ambitious ESG targets and improved performance in 2021
Ambitious ESG targets and improved performance in 2021 Trustworthy data Valued people Target: Continuous Target: Employee privacy and security Engagement Index (EEI) training for our above 7.5 employees No Inclusive learning major data Empowering learning of EEI breaches 7.3 over 20 million students
Slide 14: Our strong sustainability performance is reflected in improved ESG ratings
Our strong sustainability performance is reflected in improved ESG ratings Sustainalytics MSCI rating CDP score risk rating AA 9.8 B Scale 0 – 100, Scale AAA – CCC Scale A – D- lower score = lower risk ISS rating Upright net impact C- AA+ Scale A – D Scale AAA – C 14 AGM 2022 - CEO's Review
Slide 15: Outlook for 2022
Outlook for 2022 ▪ In 2022, Sanoma expects that the Group’s reported net sales will be 1.25‒1.30bn€ (2021: 1.25). ▪ The Group’s operational EBIT margin excluding PPA is expected to be between 15−16% (2021: 15.8%). Regarding the operating environment Sanoma expects that: – The continuing coronavirus
Slide 16: Together with our employees, we support the people in Ukraine
Together with our employees, we support the people in Ukraine – limited impact of the war on the business ▪ We are shocked and appalled by the Russian invasion in Ukraine and we stand with the Ukrainian people ▪ Sanoma and our employees made donations to the Red Cross to support the humanitarian aid
Slide 17: Growing through M&A while paying an increasing dividend
Growing through M&A while paying an increasing dividend ▪ The Board proposes a dividend of 0.54€ Dividend per share (2020: 0.52) per share to be paid for 2021 € – Representing a total of approx. 88m€ – Yield 4.0% at the end of 2021 ▪ To be paid in two parts – 0.27€ on 20 April (record date 11 April)
Slide 18: We have a healthy pipeline of M&A opportunities in K12 learning business
We have a healthy pipeline of M&A opportunities in K12 learning business We aim to grow in K12 We aim to acquire Our M&A pipeline is learning content by businesses that healthy ▪ Strengthening our position in ▪ Focus on K12 learning ▪ Market consolidation current operating countries content driven b
Slide 19: Leading learning company capturing growth in an attractive market
Leading learning company capturing growth in an attractive market ▪ We are one of the global leaders in K12 education serving over 20 million students ▪ We are Finland’s leading cross-media company and we continue our successful digital transformation ▪ We aim to grow our learning business through M
Slide 20: Thank you for your support!
Thank you for your support!
Slide 21: Appendix
Appendix
Slide 22: Sanoma in 2021
Sanoma in Learning Media Finland 2021 Net sales 637m€ Net sales 615m€ NET SALES Non-print 57% Non-print 49% 1,252m€ Margin 21.0% Margin 11.9% NON-PRINT SALES NET SALES NET SALES 53% Netherlands Subscription Poland Non-print OPERATIONAL EBIT MARGIN advertising Spain 15.8% Belgium Print advertising Si
Slide 23: Group key figures FY 2021
Group key figures FY 2021 m€ 2021 2020 2021 2020 Net sales 1,251.6 1,061.7 Average number of employees (FTE) 4,885 4,255 Operational EBITDA 361.0 309.9 Number of employees at the end of the 4,822 4,806 margin 28.8% 29.2% period (FTE) Operational EBIT excl. PPA 197.2 156.5 margin 15.8% 14.7% EBIT 142
Slide 24: Strong progress towards our long-term financial targets
Strong progress towards our long-term financial targets GROUP Long-term target 31 Dec 2021 Net debt / adj. EBITDA below 3.0 2.4 Equity ratio 35-45% 40.6% Increasing dividend Dividend 40-60% 55% of free cash flow LEARNING FY 2021 Comparable net sales development 2-5% 7% Operational EBIT margin excl.
Slide 25: Largest shareholders
Largest shareholders 31 March 2022 Largest shareholders Holding by sector Number of % of 3% Shareholders 15% shares shares 1. Jane and Aatos Erkko Foundation 39,820,286 24.4 16% Antti Herlin 2. 19,816,800 12.1 Holding Manutas Oy: 12.10%, personal: 0.02% 3. Langenskiöld Robin 12,273,371 7.5 4. Seppäl
Slide 26: Please contact our Investor Relations
Please contact our Investor Relations: Kaisa Uurasmaa, Head of IR & Sustainability +358 40 560 5601 | [email protected] [email protected] | www.sanoma.com