Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Shareholder Meeting (March 2017)
36 slides from Alma Media Oyj's shareholder meeting presentation, Mar 22, 2017
Slide 1: President and CEO's Review
PRESIDENT AND CEO’S REVIEW Annual General Meeting of Alma Media Corporation, 22 March 2017 Kai Telanne
Slide 2: Presentation contents
Presentation contents Current events in media Financial statements 2016 Economic situation Strategy
Slide 3: Slide 3
Slide 4: Fake news quote by Charlie Beckett
”Fake news is the best thing that has happened for journalism in decades. It forces journalism to prove its value, be more accountable, drive value into people’s lives.” Media Professor Charlie Beckett, London School of Economics, think-tank Polis director, Special Advisor on broadcasting Commons Se
Slide 5: A clear increase in influencing towards the media
A clear increase in influencing towards the media Reuters 19 October 2016 Uusi Suomi 20 October 2016 Iltalehti 1 February 2017
Slide 6: Defending reliable media
Defending reliable media Kau UMAALISKUUTA 2016 : ‘maalaaminea ja Medias! iteaan mimitavattahot myrkyttavat yhteiskunnal lien keskusteun ja yteskunnan mapa johtamala yest (ahalliesti harhaan valheelisila viestelisin, Hyvan maunja sovelisiuuden rat ono. Moniarvoinen viestnt ja sananvapaus salivatenase
Slide 7: Accelerating sustainable growth
ACCELERATING SUSTAINABLE GROWTH
Slide 8: Financial statements 2016
Financial statements 2016 ey aes
Slide 9: Group revenue and operating profit 2014–2016
Group revenue and operating profit 2014–2016 Revenue Adjusted operating profit 353.2 295.4 291.5 35.2 21.4 23.4 -0.7 MEUR -5.7 -8.4 2014 2015 2016 2014 2015 2016 Adjusted items Oikaistut erät 3.4.2017
Slide 10: Earnings per share and equity per share 2014–2016
Earnings per share and equity per share 2014–2016 Earnings per share, EUR Shareholders’ equity per share, EUR 0.25 1.60 0.20 1.40 1.20 0.15 1.00 EUR EUR 0.80 0.10 0.20 1.35 1.44 0.19 0.60 1.17 0.13 0.40 0.05 0.20 0.00 0.00 2014 2015 2016 2014 2015 2016
Slide 11: Interest-bearing net debt and equity ratio 2010–2016
Interest-bearing net debt and equity ratio 2010–2016 Net debt, MEUR and gearing, % Equity ratio, 2010–2016 2010–2016 110.5 % 67.1 % 74.1 % 97.6 57.0 % 68.5 % 59.4 % 41.4 % 45.7 % 71.1 76.2 42.6 % 42.5 % MEUR 62.3 36.5 % 57.1 34.4 % -28.2 % -33.4 % - 32.4 - 32.3 2010 2011 2012 2013 2014 2015 2016 201
Slide 12: Distribution of profit 2010–2016
Distribution of profit 2010–2016 Dividend* and effective dividend yield 2010 2011 2012 2013 2014 2015 2016 Dividend*, EUR 0.70 0.40 0.10 0.10 0.12 0.12 0.16 Effective dividend yield 8.5% * dividend and capital repayment combined 6.5% 2.2% 3.3% 4.4% 4.0% 3.2% Profit distribution proposal for 2016: EU
Slide 13: Alma business units
Alma business units 3.4.2017 13
Slide 14: Alma Markets
Alma Markets Revenue Adjusted operating profit 69.4 59.0 19.3 52.6 13.8 9.2 2014 2015 2016 MEUR 2014 2015 2016 3.4.2017
Slide 15: Alma Talent
Alma Talent Revenue Adjusted operating profit 114.0 12.4 8.0 53.0 58.5 6.7 2014 2015 2016 MEUR 2014 2015 2016 3.4.2017
Slide 16: Alma News & Life
Alma News & Life Revenue Adjusted operating profit 49.6 7.0 44.1 46.1 4.2 2.8 2014 2015 2016 MEUR 2014 2015 2016 3.4.2017
Slide 17: Alma Regions
Alma Regions Revenue Adjusted operating profit 145.4 9.1 134.5 127.7 8.3 8.5 2014 2015 2016 MEUR 2014 2015 2016 3.4.2017
Slide 18: Development of Alma's stock exchange rate 2015–2016
Development of Alma’s stock exchange rate 2015–2016 6.00 5.00 4.00 3.00 € 2.00 1.00 0.00 1.1.2015 Q215 Q315 Q315 Q415 Q116 Q216 Q316 Q416 Alma Media OMX Helsinki (indeksoitu) (indexed) 3.4.2017
Slide 19: Outlook
Outlook The Finnish economy is expected to grow by 1–2% in 2017. Alma Media’s significant operating countries in Eastern Central Europe, such as the Czech Republic and Slovakia, are expected to see economic growth of 2–4%. Macroeconomic development affects both consumer demand and advertising volume
Slide 20: Economic outlook
Economic outlook peg - =e
Slide 21: Positive outlook for companies
Positive outlook for companies 3.4.2017
Slide 22: Investments awakening
Investments awakening 140 Principal demand factors 135 Volume index 2005 = 100, seasonal adjusted 130 125 120 115 110 105 100 95 90 85 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Demand Exports Consumption Capital expenditure Source: Confederation of Finnish Industries EK/Statisti
Slide 23: Main economic sectors improving
Main economic sectors improving 40 Economic outlook by main sector 30 20 10 0 -10 -20 -30 -40 -50 -60 -70 -80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Industry Construction Services Source: Economic barometer published by the Federation of the Confederation of Finnish Industries (
Slide 24: Media advertising picking up?
Media advertising picking up? 30 20 10 0 -10 -20 1994 1993 1997 1998 1990 1991 1992 1995 1999 1996 2000 2001 2002 2005 2007 2009 2010 2011 2012 2015 2003 2004 2006 2008 2013 2014 2016 Media advertising Investoinnit (change %) mediamainonta, muutos-% BKT Finland Suomen (change BKT, %) muutos-% Source
Slide 25: Marketing has a central role in turning the economy up
Marketing has a central role in really turning the economy up Each euro invested in ADVERTISING advertising may AND increase Finland’s well-being GDP Source: Deloitte, Value of Advertising, World Federation of Advertisers, 3.4.2017 Association of Finnish Advertisers and Sanoma
Slide 26: Strategy
Strategy tae
Slide 27: Strong structural transformation in media advertising
Strong structural transformation in media advertising Media advertising by category 100 % 3% Outdoor and 3% 4% 5% transport 1% 90 % Film 20% 80 % Radio 28% 70 % 16% Online 60 % Television 50 % 22% Printed directories 40 % 6% Magazines 30 % 57% 20 % 34% 10 % 0% 1999 2000 2001 2002 2003 2004 2005 2006
Slide 28: Drivers of change
DRIVERS OF CHANGE PRINT > DIGITAL DESKTOP > MOBILE INCREASING LOCAL > GLOBAL PACE OF MASS > FOCUSED CHANGE DIRECT SALES > PROGRAMMATIC BUYING
Slide 29: Alma Media's strategy path
Alma Media’s strategy path 2015– Leveraging digitisation to 2010–2015 accelerate growth Increasing the volume of digital services and 2005–2010 internationalisation The Internet becomes the second cornerstone 3.4.2017 29
Slide 30: Digital business compensates for the decrease in print media
Digital business compensates for the decrease in print media… Print revenue Digital revenue Service revenue Share of digital 400 38% 40% 350 35% 37 300 30% 23 250 17 133 25% 200 20% 150 15% 100 247 182 10% 50 6% 5% MEUR 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 31: ... and allows increased profitability
… and allows increased profitability Operating profit Operating profit, % 50 20 45 42.9 18 40 16 35.2 Operating profit, MEUR 35 14 Operating profit % 13.6% 30 12 25 23.4 10 10.0% 20 8 8.0% 15 6 10 4 5 2 0 0 2011 2012 2013 2014 2015 2016
Slide 32: Digital business accounted for 60% of adjusted operating profit
Digital business accounted for 60% of Alma’s adjusted operating profit 21.2 13.7 16.8 Group adjusted 14.0 operating profit, MEUR 7.7 6.6 2014 2015 2016 Operating profit/Print Operating profit/Digital 3.4.2017
Slide 33: Alma's international business operations are growing very profitably
Alma’s international business operations are growing very profitably 32 73 Revenue 2012–2016, 37 37 45 MEUR 286 262 261 279 245 2012 2013 2014 2015 2016 Revenue 2016 Operating profit 2016 Employees 2016 21 % 32% 32 % 79 % 68 % 68% Finland Other countries Kotimaa Finland Ulkomaat Other countries Koti
Slide 34: Digitisation is an opportunity
Digitisation is an opportunity 34
Slide 35: Our aim is to increase the share of digital revenue
Our aim is to increase the share of digital revenue to 50% by 2020.
Slide 36: Accelerating sustainable growth
ACCELERATING SUSTAINABLE GROWTH