Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q4 2007 Earnings Presentation
36 slides from Alma Media Oyj's earnings presentation, March 2008
Slide 1: Alma Media Q4 2007
Alma Media Q4 2007 Teemu Kangas-Kärki, CFO Rauno Heinonen, IR February – March 2008 Alma Media Corporation 1
Slide 2: Presentation structure
Presentation structure • Alma Media in Brief • Media Markets in Finland • Alma Media’s Strategy • Q4 2007 Highlights Picture size 63 x 132mm • Outlook for 2008 100dpi • Q4 2007 and FY2007 Financial Review Alma Media Corporation 2
Slide 3: Alma Media – Newspapers in Finland
Alma Media – Newspapers in Finland c Alma Media Corporation 3
Slide 4: Alma Media – Europe-wide Online Classified
Alma Media – Europe-wide Online Classified Real estate: Real estate: Jobs: Cars: Cars: Heavy machinery: Heavy machinery: General classified: Alma Media Corporation 4
Slide 5: Top 10 newspapers in Finland
Source: Finnish Newspapers Association (2007 figures released in April ’08) Top 10 newspapers in Finland Circulation in 2006 Helsingin Sanomat 426 117 Ilta-Sanomat 186 462 Aamulehti 138 258 Iltalehti 133 007 Turun Sanomat 112 360 Maaseudun Tulevaisuus 83 604 Kaleva 82 037 Kauppalehti 81 337 Keskisuo
Slide 6: 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 Corporation 6
Slide 7: Sales breakdown 2007
Sales breakdown 2007 Total Sales 328.9 EUR Million Others Other sales 0.7% 10.7% Marketplaces 9.2% Printing sales 0.6% Kauppalehti group 21.3% Circulation sales Sales by Sales by 39.9% segment type Advertising sales 48.8% Newspapers 68.8% Alma Media Corporation 7
Slide 8: Ownership structure, Jan 2008
Ownership structure, Jan 31 2008 % of shares Largest registered owners / votes 1. Nordea Bank Limited 17.8 17 % 11 % 2. Oy Herttaässä Ab 10.2 3. Varma Mutual Pension Insurance Company 9.1 12 % 16 % 4. Sampo Life Insurance Company Limited 8.9 8% 5. Kaleva Mutual Insurance Company 5.6 6. C. V. Åkerlun
Slide 9: Media Markets in Finland Q4 & FY 2007
Media Markets in Finland Q4 & FY 2007 Alma Media Corporation 9
Slide 10: 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 11: 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 12: Media advertising Alma Media vs. market 2007
Media advertising Alma Media vs. market 2007 Market Alma Media Change, % Q1-Q4 07 * Q1-Q4 07 Newspapers 4,2 4,9** Magazines 4,2 - Television 7,9 - Radio 3,0 - Internet 24,0 37,5 TOTAL 6,0 10,0 Source: * TNS Media Intelligence ** Newspapers-segment (excl. online services), Kauppalehti and Etuovi.com
Slide 13: Most advertised branches 2007
Most advertised branches 2007 Newspapers Total Adv. Sales 1-12/ 07 MEUR Retail 5,9 % Retail 212 Motor v. -3,7 % Motor vehicles 75 Food & bev -12,2 % Food & beverages 5 Tele -24,1 % Telecommunications 18 Houses and 54 Houses 10,2 % premises Entert. 5,8 % Entertainment 26 Tourism -6,9 % Tourism and tr
Slide 14: Strategy
Strategy Alma Media Corporation 14
Slide 15: 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 16: 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 17: Implementing the strategy
Implementing the strategy Constant renewal Chaining Product development Quality & content improvement Content development Picture size Cross-promotion & traffic 63 x 132mm 100dpi International M&A expansion Targeting classified Classified as spearhead businesses in CE Europe Real estate (City24) sta
Slide 18: 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 Corporation 18
Slide 19: Q4 & FY 2007
Alma Media Corporation Q4 & FY 2007 Alma Media Corporation 19
Slide 20: Highlights FY 2007
Highlights FY 2007 • A good year for Alma Media as a whole • Advertising sales grew faster than market growth: 10 % vs. 6 % • Newspapers’ circulation sales developed well • Kauppalehti steered to clearer waters after restructuring efforts • Marketplaces in a good 34 % growth • Dividend proposal of 0
Slide 21: Newspapers Q4/07
Newspapers Q4/07 • Net sales grew 1.8 % to 59.3 MEUR – Media sales up 3.0 % • Tough comparables and local market differences • Iltalehti improved its media sales both from print and online Picture size – Circulation sales grew by 1.9 % 63 x 132mm • Aamulehti and Lapin Kansa performed well 100dpi • I
Slide 22: Kauppalehti Q4/07
Kauppalehti Q4/07 • Kauppalehti Group net sales 19.1 MEUR (19.0 MEUR) – Net sales brought down by the discontinuation of Presso – Online businesses (ePortti and Kauppalehti.fi) and BNS grew well Picture size • Kauppalehti circulation sales up 4.6 % 63 x 132mm – Circulation sales of the customer maga
Slide 23: Marketplaces Q4/07
Marketplaces Q4/07 • Net sales grew 25.7 % to 8.0 MEUR • Domestic growth 26.5 % – Monster.fi growing at almost 50 % rate – Mikko.fi service picking up online traffic Picture size • Foreign operations up 22.9 % 63 x 132mm 100dpi – City24 in Estonia: again good growth and profit – City24 expanded to C
Slide 24: Outlook for 2008
Outlook for 2008 Alma Media Corporation 24
Slide 25: 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. • The comparable operating profit for the full year should be at the level of the previous year. The operating profit at the beginning
Slide 26: Financial Review FY 2007 & Q4
Financial Review FY 2007 & Q4 Alma Media Corporation 26
Slide 27: 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 28: Key figures 2004-2007, MEUR
Extraordinary items Key figures 2004-2007, MEUR Net Sales EBIT EBIT % 350 80 20 % 300 70 60 15 % 250 50 200 40 10 % 150 30 100 20 5% 50 10 0 0 0% 2004 2005 2006 2007 2004 2005 2006 2007 Excl. Online Online sales Alma Media Corporation 28
Slide 29: Key figures 2007, MEUR
Extraordinary items Key figures 2007, MEUR Net sales EBIT 90 +3.2% 25 80 70 20 60 15 50 40 10 30 20 5 10 0 0 Q406 Q107 Q207 Q307 Q407 Q406 Q107 Q207 Q307 Q407 Alma Media Corporation 29
Slide 30: 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 +5,7% 2,0 2,0 1,0 1,0 +0,7% 0,0 0,0 Q406 Q107 Q207 Q307 Q407 Q406 Q107 Q207 Q307 Q407 Alma Media Corporation 30
Slide 31: Net Sales Q4 2007 by business area, MEUR
Net Sales Q4 2007 by business area, MEUR 70 58,2 59,3 60 50 40 30 19,0 19,1 20 10 6,4 8,0 0 Newspapers Kauppalehti group Marketplaces NS Chg % 1,8 0,6 25,7 Circ Chg % 1,9 -3,8 - Advert Chg% 3,0 -4,0 31,9 Net sales Q4 2006 Net sales Q4 2007 Alma Media Corporation 31
Slide 32: EBIT: Q4 2007 by business area, MEUR
EBIT: Q4 2007 by business area, MEUR 14 12 10,8 10 9,4 7,8 8 6 3,7 4 2,2 2 0,8 0,8 1,2 0 Newspapers Kauppalehti group Marketplaces Others EBIT% Q406 18,5 4,0 11,8 n/a EBIT% Q407 15,8 11,7 15,0 n/a EBIT Q4 2006 EBIT Q4 2007 Alma Media Corporation 32
Slide 33: Key ratios in 2007
Key ratios in 2007 Equity ratio, % Gearing, % ROE % ROI % 80 0 60 60 69,8 52,7 70 -2 61,3 50 50 43,8 60 -4 40 40 50 -6 -5,6 32,8 30,9 40 -8 30 30 30 -10 20 20 20 -12 10 10 10 -14 0 -16 -15,2 0 0 Q4/06 Q4/07 Q4/06 Q4/07 2006 2007 2006 2007 Alma Media Corporation 33
Slide 34: Key figures on cash basis, MEUR
Key figures on cash basis, MEUR Operating cash flow Net cash (Net debt) Dividend Pay out ratio 67,2 70 70 70 150 % 60 60 60 140 % 52,5 48,5 48,5 50 46,7 50 50 130 % 40 40 40 120 % 33,7 30 30 30 110 % 17,9 20 100 % 20 20 13,2 10 10 6,5 10 90 % 0 0 0 80 % 2005 2006 2007 2005 2006 2007 2005 2006 2007 A
Slide 35: DPS and RE per share, EUR
DPS and RE per share, EUR 2,0 2,0 1,6 1,6 0,64 Picture size 1,2 1,2 0,64 63 x 132mm 0,90 100dpi 0,8 0,65 0,68 0,8 0,50 0,90 0,94 0,4 0,4 0,0 0,0 2006 2007 2006 2007 Dividend per share Restricted equity Earnings per share Retained earnings Alma Media Corporation 35
Slide 36: Thank You!
Thank You! [email protected] [email protected] Alma Media Corporation 36