Alma Media Oyj · OMXHEX:ALMA

Alma Media Oyj — Investor Day (May 2004)

43 slides from Alma Media Oyj's investor day presentation, May 27, 2004

1. Slide 1: Capital Markets Day May 27th, 2004

   Capital Markets Day May 27th, 2004

2. Slide 2: Strategy Update

   Strategy Update Juho Lipsanen May 27th, 2004 CM Management targets 2002 D 15 .5. GENERAL ECONOMIC 20 ƒ simplicity ƒ profitability/ cost conciousness 02 ƒ correctly allocated resources ƒ productivity ƒ developing and strengthening ƒ continuous improvement company culture ƒ WACC to be covered in every

3. Slide 3: Financial Roadmap

   Financial Roadmap 30 Cash Flow ƒ Cash flow 2002-2003 20 ƒ Cash flow based decision 10 making 0 ƒ Balance sheet 2003-2004 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 -10 ƒ Alprint Rahola merger to Acta Print -20 ƒ Alprint Hyvinkää divestment ƒ Real estate divestments 500 Total assets

4. Slide 4: Net sales 2003 decreased due to divestments

   Net sales 2003 decreased 25 MEUR due to divestments - portfolio management MEUR change % 500 7% + 17.8 % 400 8% - 45.4 % 300 62 % + 0.6 % 200 100 23 % + 0.0 % 0 1997 1998 1999 2000 2001 2002 2003 Circulation sales Media sales Printing sales Others 5 Top-of-mind newspapers 6 3

5. Slide 5: Top-of-mind television programs

   Top-of-mind television programs 7 Top-of-mind multichannel media for classified From electronic to print ! Internet + mobile MMS -- > Print Content is king not the channel 8 4

6. Slide 6: Visitors per Week and market share of media

   Visitors per Week 8/1998 – 4/2004, Alma Media sites total 2 000 000 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 Aug Jan Jun Nov Apr Sep Feb Jul Dec May Oct Mar Aug Jan Source:WTM/IMR/Alma Media 9 Market share of media companies in Finland, media advertising 35

7. Slide 7: Outlook 2004

   Outlook 2004 General outlook 2004 ƒ GNP estimate in Finland 2%... 3 % ƒ Inflation 1%...2% ƒ Media market estimate 2 %...3 % ƒ Newspaper advertising: lower than media market ƒ Television advertising: higher than media market ƒ Newsprint price development: flat - ƒ Salaries > 3 % ƒ Technology ƒ Digitv

8. Slide 8: Alma Media outlook 2004 and Strategy 2004

   Alma Media outlook 2004 ƒ No negative change is foreseen in market conditions during 2004 ƒ Moderate growth in Alma Media´s comparable net sales ƒ FY estimate reiterated after Q1, EBIT clearly higher than 2003 ƒ Alpress EBIT at good 2003 level ƒ Broadcasting, BIG and Media Services are improving pro

9. Slide 9: Vision 2014

   Vision 2014 Alma Media is an entertainment and communications corporation which is independent of distribution channels. It is an active international player in selected markets. 15 THE TOP-OF-MIND MEDIA GROUP BEST PLACE BEST TO WORK ALTERNATIVE PREFERRED PARTNER SOLID CONTINUOUS GROWTH IMPROVEMENT

10. Slide 10: Growth options within communication industry

    Growth options within communication industry Business Information Professional, educational and training Services media -Marketing information Professional Publishing and services services legal&regulatory -Economic and financial scientific & technical Broadcast television data Health science -Telev

11. Slide 11: 2004 Strategy priorities by divisions

    2004 => Strategy priorities by divisions ƒ Alpress ƒ Organic growth ƒ Iltalehti supplements, Aamulehti´s Valo supplement ƒ M&A ƒ Broadcasting ƒ Capacity utilization - Profitability ƒ Channel family (MTV3, Subtv, MTV3+) ƒ Brand extensions to consumer market ƒ BIG ƒ Business development – organic grow

12. Slide 12: Financials Q104

    Financials Q104 Teemu Kangas-Kärki Alma Media Corporation Q104, MEUR 140 10 120 13,8 8 7,1 7,2 100 80 6 60 4 106,5 +3,4 % 110,1 40 6,1 2 4,2 20 0 0 Q103 Q104 Q103 Q104 Net sales Alprint EBIT EBIT w/o assoc.comp 22 11

13. Slide 13: EBIT Q201–Q104 and net debt

    EBIT Q201– Q104, MEUR 20 8% 12,7 7% 15 6% 10,1 10,3 9,1 5% 6% 4% 4% 10 4% 3 %6,1 5 3,3 4,2 2% 1% -0,1 0 0% 0% -5 -3,4 -2 % -2 % -5,9 -3 % -3 % -4,4 -10 -4 % -4 % -15 -6 % -20 -16,1 -8 % Q201 Q301 Q401 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 EBIT, MEUR Rolling 4Q % of Net Sales 23 Interest beari

14. Slide 14: Equity ratio and gearing

    Equity ratio and gearing 60 120 112,3 49,0 50 100 41,3 40,6 81,2 79,6 40 37,0 80 30 60 50,7 20 40 10 20 0 0 2001 2002 2003 Q104 2001 2002 2003 Q104 Equity ratio % Gearing % 25 Chaining and continuous development as a key success factor in Alpress’s strategy Hannu Olkinuora / Maija-Liisa Pennanen 13

15. Slide 15: Alpress mission, vision and targets

    1 afternoon paper 5 regional papers 26 local and town papers 27 MISSION VISION The newspapers in the Alpress chain Finland’s most evolving publisher promote democracy, the freedom of Mission and an attractive partner speech and the welfare of their circulation areas. Values TARGETS Vision • Circulat

16. Slide 16: Alpress management system and competence centres

    Management system ALMA MEDIA TARGETS ALPRESS DIVISION TARGETS BOARDS OF DIRECTORS TARGETS NORTHERN SATAKUNNAN NEWSPAPERS PAIKALLIS- AAMULEHTI ILTALEHTI Kainuun Sanomat KANSA SANOMAT Lapin Kansa Pohjolan Sanomat REQUIREMENTS UTILIZATION MANAGEMENT GROUP TARGETS MEDIA PRINTING PROCESSES, EDITORIAL CIR

17. Slide 17: Circulation marketing in Alpress

    Circulation marketing in Alpress Kainuun Other newspapers Sanomat Local/ Joint action Circulation marketing of Alpress Operations Local special with other similar to activities co-ordinates : activities newspapers all dailies - strategic planning - development - common marketing operations - data sy

18. Slide 18: Achievements of circulation marketing co-operation

    Achievements of circulation marketing co-operation ƒ Circulation development above comparable group ƒ Improved competence level ƒ Improved working methods ƒ Intensive use of database ƒ Cost savings ƒ Competence and structure ready for possible expansion 33 Circulation changes from 2000*) to 2003 2 1

19. Slide 19: Customer relationships are our most valuable asset

    Customer relationships are our most valuable asset Customer satisfaction Customer value Strength Potential 35 Customer relationships are our most valuable asset ƒ Focus on new customers as well as serving existing ones ƒ More well-balanced customer portfolio ƒ Invest in customers with future (childr

20. Slide 20: Renewal of customer-centric thinking

    Renewal of customer-centric thinking Examples • Customer relationship can be established before subscription •Increasing co-operation, Customer Customer alliances, networks Reader etc. Subscriber 37 Increased importance of customer care ƒ Customer databases are an asset ƒ Importance of service and c

21. Slide 21: Customer Focused Multiple Media Marketing in Business Information Group

    Customer Focused Multiple Media Marketing in Business Information Group Juha Blomster / Päivi Nurmesniemi 113 Meur Business Information Group TALENTUM OYJ Net sales in 2003: 46 Meur 31.7 % 7 Meur 36 Meur 3 Meur PRODUCT FAMILY Media Monitoring 1 Meur Business Intelligence - Balance Consulting - Efekt

22. Slide 22: Kauppalehti multiple media

    Kauppalehti multiple media RADIO: Kauppalehti Business News 148,000 listeners/day TV: 706,000 viewers/broadcast PRINT: Kauppalehti, Optio, TEXT TV: 306,000 regular users Extra, Saldo; 462,000 readers FLOW OF NEWS & FLOW OF NEWS & INFORMATION INFORMATION Super Desk INTERNET: Kauppalehti Online, Corpo

23. Slide 23: Kauppalehti multiple media at your service

    Kauppalehti multiple media at your service ƒ Independent of time and place ƒ Media have different roles ƒ To fulfill different needs of readers Decision-makers ƒ To fulfill the target group different advertiser needs 43 Kauppalehti multiple media and advertising profile media mass media Target group

24. Slide 24: Customer segmentation

    Customer segmentation – easier recognition of, and better response to, different advertiser needs Potential/ BIG customers & Increasing TRANSACTION Alma Media number of customers key accounts MULTIPLE MEDIA customers Advertising and media agencies 45 Transaction customers ƒ Wide range of customers,

25. Slide 25: Multiple media customers and key accounts

    Multiple media customers ƒ Major media investors, big potential ƒ Also new business in the B-to-C market ƒ Tailored multiple media solutions for customer needs ƒ Product development and innovations in co-operation with the Editorial Department ƒ Kauppalehti Optio Gourmet, Kauppalehti Optio Fashion…

26. Slide 26: Multi-brand strategy and brand extensions in Broadcasting

    Multi-brand strategy and brand extensions offer growth opportunities to Broadcasting Mikko Räisänen / Anu Perrotta Alma Media Broadcasting MTV3 MTV Subtv Radio Nova TV4 (SWE) Interactive 23.4% 2003 key figures: - Net sales 178 M€ - EBIT 5.9 M€ - personnel (excl. TV4) 550 50 25

27. Slide 27: Turning viewers into customers

    Turning viewers into customers Advertisers € € € interactive 3G 51 Electronic media business – permanent elements 1. Generate audiences 2. Sell contacts to advertisers 3. Receive payments from consumers Two different markets with common basis for success: attractive offering and strong brands Circul

28. Slide 28: Electronic media business – permanent elements

    Electronic media business – permanent elements - Acquire/produce and package content - Establish and maintain a strong brand - Make offering available to everybody - Know your market – advertisers and consumers One combination of content and programmes which is the basis for the whole operation € Ad

29. Slide 29: Available to all in all relevant distribution channels

    Available to all - in all relevant distribution channels Analogue TV Cable, Terrestrial, Satellite Content and Digital TV services to all relevant distribution Dial-up, channels Broadband Internet 2G, Mobile SMS 55 Business environment (by equipment producer, est.) (1000) 2003 2004 2005 2006 MMS/Jav

30. Slide 30: Our earning logic in internet and mobile businesses

    Our earning logic in internet and mobile businesses: a) advertising revenues b) consumer revenues: service price + a share of the traffic revenue content € Operaattori provider Operator content provider content Branded provider content Content provider Operaattori € Operator 57 Our earning logic in

31. Slide 31: MTV3 Broadband

    MTV3 BROADBAND MTV3 services, content, etc. FOR THE CUSTOMER MTV3 broadband is MTV3 Content • all services in one package MTV3 Communication Service • easy to buy - Luukku e-mail • safe to use • developing according MTV3 Internet Service to customer’s needs MTV3 Terminal Main target group: MTV’s 350

32. Slide 32: MTV3 Mobile – interactive services

    Turning viewers into customers Advertisers € € € interactive 3G New revenue 61 MTV3 Mobile – interactive services for the masses • MTV3 Mobile’s net sales in 2003: 6.5 M€ • MTV3 focuses on interacting with the masses • Turning core competence into sellable concepts and understanding consumer behavio

33. Slide 33: MTV3 Mobile and new revenue sources

    MTV3 Mobile – turn on your phone from MTV3 Channel • Browser phones will grow strongly in next 2-3 years • Mobile content market will continue growing roughly 15 % a year • Consumer-priced mobile phones available at the end of 2005 with video capability – turn on your phone from MTV3 Channel MTV3 Mo

34. Slide 34: PayTV – see more

    PayTV – see more 65 PayTV – see more • Experience good so far • More than 5,000 subscriptions for SM-liiga (national ice hockey ) play-offs package • Goal: 10,000 F1 packages during current season • More programmes of interest to different audience groups coming up • F1 and Hockey Night buyers react

35. Slide 35: Case Subtv: Breakthrough by Developing Programming with MTV3

    Electronic media business – questions ahead - What entertains in the future? - What is content and what is service? - How to establish a consumer relationship and maintain it? € ? Advertisers € € interactive 3G 67 Case Subtv: Breakthrough by Developing Programming with MTV3 Tomi Halonen / Maaretta T

36. Slide 36: Good platform for success

    ”Subtv ylitti ensi kertaa miljoonan katsojan rajan” ”Subtv exceeds million viewers for first time” HS 24 March 2004 ”Alman kanavat kasvattivat katsojaosuuttaan” ”Alma’s channels raised viewer shares” Taloussanomat 15 Jan. 2003 ”Rakastunut Outi Mäenpäähän” ”In love with Outi Mäenpää" HS/ Jukka Kajava

37. Slide 37: Finnish commercial media by daily reach; Case Aquarium

    Finnish commercial media by daily reach 3500 3 100 3000 2500 1 900 2000 1500 1 103 956 878 1000 700 603 433 362 500 1.000 0 + + 2+ + + 10 12 12 10 1 en at ti 3 S eh TV m H on al no M el Ilt sa N a- Il t Note: figures are based on different media studies and are not directly comparable in media plann

38. Slide 38: Versatile programming

    Versatile programming 1. High-quality new series from US, UK and other countries 2. Premium movies and co-operation with Helsinki Film Festivals (Love & Anarchy) 3. Strong supply of unique reality TV series like Noriko Show, Big Brother… 4. Special programmes for different ”TV tribes”: temporary and

39. Slide 39: Right programmes in right slots

    Right programmes in right slots 1. Carefully focused analysis of research data 2. Listening to viewers, responding to feedback 3. Benchmarking against international, innovative peer channels 4. Recognizing weak signals of changes in consumer behaviour before competitors 75 One sales house – commerci

40. Slide 40: Two channels cover all viewing needs

    Two channels cover all viewing needs 1. Hero and helper 2. Together stronger than alone, 1+1 >2 3. Alternative supply in relation to MTV3’s programming 4. Conduct audience flow between the channels 77 Fast growth of viewing Q1 2004 ƒ Weekly average reach 1.4 million viewers ƒ Daily average 700,000 ƒ

41. Slide 41: Sales avalanche about to start; Subtv is here to stay

    Sales avalanche about to start any moment… Growth in Q1/2004 92% 79 Subtv is here to stay 1. The goals are: a) Strong and individual image and content b) Cost-effective through all the processes c) Profitable by 2006 2. The identity of Subtv is crystallized into its inner brand image: a) Relaxed b)

42. Slide 42: Digitalization works for Subtv

    Digitalization works for Subtv ƒ 2003 ƒ 2004 ƒ 2005 ƒ Penetration 74 % of ƒ Penetration 94 % of ƒ Penetration 99.9 % of population population (August) population 81 Costs managed by joint purchasing 1. Stronger position in the acquisition market 2. Volume benefits by buying together with MTV3 3. Wel

43. Slide 43: Subtv's break-even in 2006!

    Subtv´s break-even in 2006! 83 42

Alma Media — Investor Day (May 2004) on 6ix