Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (June 2018)
93 slides from Sanoma Oyj's investor day presentation, June 2018
Slide 1: Building on a solid base for selective growth
Sanoma Capital Markets Day 2018 Building on a solid base for selective growth
Slide 2: Agenda
Agenda 8:45 Welcome Building on a solid base for selective growth Susan Duinhoven, President & CEO Focusing on profitability and cash flow generation Marc Duijndam, CEO Sanoma Media Netherlands Continuing to strengthen our market position Pia Kalsta, CEO Sanoma Media Finland Coffee break Creating a
Slide 3: Adjustments and restatements
Adjustments and restatements All 2016-2017 figures presented in this presentation are for continuing operations only. – Sanoma announced on 16 January 2018 the intention to divest its Belgian women’s magazine portfolio. The divested business was consequently classified as Discontinued operations i
Slide 4: Today's speakers
Today’s speakers Susan Duinhoven Marc Duijndam Pia Kalsta John Martin Markus Holm President & CEO CEO CEO CEO CFO & COO Sanoma Corporation Media Netherlands Media Finland Learning Sanoma Corporation 4 CMD 2018
Slide 5: Building on a solid base for selective growth
Building on a solid base for selective growth Susan Duinhoven President & CEO
Slide 6: Building on a solid base for selective growth
Building on a solid base for selective growth We have completed major portfolio Resulting in: changes Solid profitability Growing cash flow We continue to focus on our Increasing dividends customers, profitability & cash flow… Equity ratio and leverage within long-term target … and increasin
Slide 7: Our major portfolio changes are now completed
Our major portfolio changes are now completed…. De Boeck Scoupy BE NL Acquisitions Tutorhouse Kortingisleuk.nl Routa N.C.D. FI Scoupy FI FI NL 2016 2017 2018 AAC Global HeadOffice Sanoma SBS Women’s Divestments FI FI Baltics NL magazines BE Autotrader.nl Kieskeurig.nl NL NL Media Finland Media Nethe
Slide 8: … resulting in improved performance in 2017
… resulting in Media Finland Net sales 2017 EUR 571 million News improved 44% non-print TV/Radio Online & Mobile performance in 11.5% margin Magazines other 2017 0 100 200 300 Media Netherlands NET SALES EUR 440 million Magazines EUR 1,327 million 30% non-print Online & Mobile Distribution 15.5% mar
Slide 9: We have a more balanced business portfolio
We have a more balanced business portfolio… Higher share of more stable Net sales by category subscription and learning sales 14% 14% Lower exposure to more 10% 9% volatile advertising sales – Finland 75% of the Group’s Advertising 26% 36% advertising sales: MEUR 250 27% – The Netherlands 25%: S
Slide 10: … and improved profitability
… and improved profitability… Profitability continued to improve Around Operational EBIT in 2017 EUR million 13.6% 14% – Streamlined and more efficient 11.3% operations – Divestments of Dutch TV operations SBS and Belgian 7.4% women’s magazine portfolio 6.2% 4.8% – Cost innovations Outlook for 2
Slide 11: …and a solid financial base in line with our long-term targets
…and a solid financial base in line with our long-term targets… Key ratio 2017 performance Long-term target Net debt / adj. EBITDA 1.7 < 2.5 Equity ratio 38.2% 35-45% Dividend policy 55% 40-60% of cash flow from operations less capex 11 CMD 2018 Strategy, Susan Duinhoven
Slide 12: … and we continue to focus on our role in society
… and we continue to focus on our role in society Content Learning Journalistic content supporting freedom of Our modern learning methods supporting teachers speech and independent information gathering in developing the full potential of every pupil Local entertainment contributing to shared
Slide 13: We adapt to a rapidly changing media landscape
We adapt to a rapidly changing media landscape Increasing time used on media though 1 Constant growth in time spent 1 mostly mobile Lower value mobile advertising model 2 Video is used more and more 2 Requires different ‘story telling’ 3 utilizing expertise from our media portfolio 4 Having
Slide 14: We adapt to a rapidly changing media landscape
We adapt to a rapidly changing media landscape Increasing time used on media though 3 Recommendations increase 1 mostly mobile engagement of users Advertisers willing to pay for 2 Video is used more and more increased conversion New skill sets in organization and 3 Data is increasingly importa
Slide 15: We adapt to a rapidly changing media landscape
We adapt to a rapidly changing media landscape Increasing time used on media though 5 Increases commercialization 1 mostly mobile opportunities for us – Online subscription news 2 Video is used more and more – Subscription based VOD 3 Data is increasingly important 6 Strength of traditional mass
Slide 16: Consumer focus directs our growth – media channels' positions
In the changing media landscape, consumer focus directs our growth – Examples of media channels’ positions Longer TIME AVAILABLE Sub- moment VOD / scription Netflix news FTA TV Magazines Radio Spotify Online You short Tube news Facebook Shorter moment ENGAGEMENT Fill the silence / Escape / Explore K
Slide 17: Consumers are willing to pay for engaging media moments
Consumers are willing to pay for engaging media moments Longer TIME AVAILABLE moment More consumer paid More advertising funded Shorter moment ENGAGEMENT Fill the silence / Escape / Explore Keep me Entertainment company 17 CMD 2018 Strategy, Susan Duinhoven
Slide 18: Our brand portfolio covers the whole spectrum
Our brand portfolio covers the whole spectrum Longer TIME AVAILABLE moment Digi Digi Digi Digi & print Shorter moment ENGAGEMENT Fill the silence / Escape / Explore Keep me Entertainment company 18 CMD 2018 Strategy, Susan Duinhoven
Slide 19: Consumer-funded media moments are attractive to us
Consumer-funded media moments are attractive to us Prime focus area for Longer TIME AVAILABLE bolt-on media acquisitions moment Consumer-funded Local competitors Trust required Highly competitive space Shorter moment ENGAGEMENT Fill the silence / Escape / Explore Keep me Entertainment company
Slide 20: Consumer-funded media moments attractive for expansion
Consumer-funded media moments attractive for expansion Longer TIME AVAILABLE Festival & moment Event business Nelonen in FTA and Radio Shorter moment ENGAGEMENT Fill the silence / Escape / Explore Keep me Entertainment company 20 CMD 2018 Strategy, Susan Duinhoven
Slide 21: Opportunities across all three businesses for selective growth through M&A
Opportunities across all three businesses for selective growth through M&A Increasing focus Headroom for on selective growth acquisitions in 2019 Synergistic bolt-on EUR acquisitions Organic growth initiatives 300-400 Active portfolio million management 21 CMD 2018 Strategy, Susan Duinhoven
Slide 22: In Media Finland, we aim to strengthen three business areas
In Media Finland, we aim to strengthen three business areas Entertainment News, feature & lifestyle B2B Total TV proposition integrating Strong portfolio of lifestyle and Unique combination of reach and FTA, AVOD and local content news brands targeting opportunities based, consumer paid VOD
Slide 23: In Media Netherlands, data will create growth in online news
In Media Netherlands, data will create growth in online news Blockbuster Online news & Special brands Data business Interest Cross media brands Value creation through Smaller brands with increasing cash top line growth by with high cost conversion increasing value of efficiency focus advertising 23
Slide 24: In Learning, our M&A strategy aims at three target areas
In Learning, our M&A strategy aims at three target areas Adjacent business Long-term growth Adjacent business in current footprint potential: markets Boost profitability through scale and synergies Strengthen market Core Core business in Core business outside positions in eco- business current f
Slide 25: Building on a solid base for selective growth
Building on a solid base for selective growth We have completed major portfolio Resulting in: changes Solid profitability Growing cash flow We continue to focus on our Increasing dividends customers, profitability & cash flow… Equity ratio and leverage within long-term target … and increasin
Slide 26: Focusing on profitability and cash flow generation
Sanoma Media Netherlands: Focusing on profitability and cash flow generation Marc Duijndam CEO
Slide 27: Focusing on profitability and cash flow generation
Focusing on profitability and cash flow generation Our core business is stable with >1.3m subscriptions NU.nl & data business will drive value creation through topline growth We have a strong profitability with 15.5% EBIT margin We focus on increasing cash conversion as portfolio restructuri
Slide 28: Leading local media brands in digital and print
We have the leading local media brands in both digital and print – reaching over 12m consumers every month #1 local player in Digital reach #1 player in Magazine reach Top local Digital publishers in monthly reach (millions)* Top 10 magazines, monthly reach (millions) ** Sanoma 8.8 Libelle 1.7 NPO (
Slide 29: Portfolio restructuring resulting in high share of subscription sales
We completed the portfolio restructuring resulting in high share of subscription sales and lower share of advertising Divestment of Dutch TV Net sales by category operations SBS 17% 22% 5% Acquisition of Veronica 10% Print Magazine (TV Guide, 220k 34 % 41% advertising 18% subscriptions) Digital
Slide 30: Our focus is on cash flow generation
Our focus is on cash flow generation Blockbuster 1 Online news & 3 Special 2 brands Data business interest brands Cross media brands Value creation through top Smaller brands with increasing cash line growth by increasing with high cost conversion value of advertising efficiency focus Share of net s
Slide 31: We continue to innovate in our print subscription business
We continue to innovate also in our print subscription 1 3 2 business… Successful subscription programs Print subscription base A Subscription ARPU B Y-o-y change Q1 2016 = index 100 111 Loyalty program 110 110 110 Cross & upsell 107 Bundling -1% -3% Smart pricing -5% -5% -6% Q1 17 Q2 17 Q3 17 Q4 17
Slide 32: Increasing billing frequency improves retention
… increasing the billing frequency is one of these 1 3 2 innovations improving the retention Retention rate of women's weekly ‘Margriet’ 100% New billing 95% frequency 90% Churn % 13% 23% 85% improvement Reference 17% Realized churn improvement offsets the expected Group negative impact of VAT incre
Slide 33: We expanded our stronghold brands into multiple products and media types
Over the years we expanded our stronghold brands 1 3 2 into multiple products and media types Libelle Magazine Specials Newsletter 54x per 16x per year 5x per week year Bookazines 13x per year Libelle.nl - Daily Puzzles 6x per year Jan, Jans en de Kinderen Comic 4x per year TV - Daily Social - Daily
Slide 34: Our Parenting Special Interest proposition is unique in the Dutch market
Our Parenting Special Interest proposition is unique in the Dutch market for consumer and advertiser 1 3 2 Data acquisition The right offer at the right time Told by 3 strong cross media brands Data acquisition results in identification of 80% of the total 172k babies born in NL p.y. 34 CMD 2018 San
Slide 35: We have successfully implemented cost innovation programs
We have successfully implemented cost innovation 1 3 2 programs across the business Selection of cost saving projects Focus on core-brands Editorial operations Freelance project Continuous cost innovation Sales, CTM, Back office savings Continuous focus on Staff & Overhead operational efficiency and
Slide 36: Customer centricity in online news strengthens NU.nl's leading position
Focus on customer centricity in online news is further 1 3 2 strengthening NU.nl’s leading position NU.nl is the #1 digital news player in the Netherlands Share of time spent development shows the focus on reaching 2 million unique visitors per day customer centricity is paying off Unique daily reac
Slide 37: Success of Scoupy: a unique B2C proposition with data and FMCG focus
Success of Scoupy: a unique B2C proposition 1 3 2 combined with data and FMCG focus Strong B2C proposition: B2B value proposition: Direct cashback on FMCG products Data-driven, full coverage of marketing funnel Communication Consumer scans the receipt to receive cashback Activation Consumer rece
Slide 38: Scoupy and NU.nl provide unique synergies in advertising
The combination of Scoupy and NU.nl provides unique synergies in advertising Relevance x reach = impact Apply collected data by SCOUPY to target relevant audience on NU.nl directly with premium pricing HIGH RELEVANCE Direct retargeting Pepsi drinkers LOW LOW REACH HIGH 38 CMD 2018 Sanoma Media Nethe
Slide 39: We have increased the cash conversion
We have increased the cash conversion and this will continue as restructuring is completed Key drivers Cash conversion ratio 2015 - 2017 1 Active working capital management 2 Reduction of IACs 55% 49% 3 Selective low-risk investments 20% 2015 2016 2017 39 CMD 2018 Sanoma Media Netherlands
Slide 40: Focusing on profitability and cash flow generation
Focusing on profitability and cash flow generation Our core business is stable with >1.3m subscriptions NU.nl & data business will drive value creation through topline growth We have a strong profitability with 15.5% EBIT margin We focus on increasing cash conversion as portfolio restructuri
Slide 41: Continuing to strengthen our market position
Sanoma Media Finland: Continuing to strengthen our market position Pia Kalsta CEO
Slide 42: Continuing to strengthen our market position
Continuing to strengthen our market position We improved our competitiveness and profitability We strengthen our positions in three areas: – Growing in entertainment – Transforming B2B offering and organization – Building on our unique position in the news media 42 CMD 2018 Sanoma Media Finland
Slide 43: Strong brands on all media platforms reaching 95% of Finns weekly
We have strong brands on all media platforms reaching 95% of all Finns weekly #1 #1 #1 #1/2 #1/2 in news in Magazines in audio in television in classifieds 50% 20% 5% 20% 5% Share of net sales 43 CMD 2018 Sanoma Media Finland
Slide 44: In the past years we improved our profitability significantly
In the past years we improved our profitability significantly Successful cost innovations across the Operational EBIT EUR million business 11.5% – Procurement – Distribution 8.5% – Content creation, purchases and editorial co-operation – Commercial operations 66 – HR and finance administration 2.3
Slide 45: Going forward we will continue improving competitiveness while initiating growth
Going forward we will continue focusing on improving competitiveness while initiating growth 2016–2017 2018 2019– Improving profitability Initiating growth Growing through M&A Suunta transformation Improving competitiveness Operational efficiency Improving competitiveness program to create competi
Slide 46: We aim to strengthen three key areas
We aim to strengthen three key areas Entertainment News, feature, lifestyle B2B 46 CMD 2018 Sanoma Media Finland
Slide 47: Strong position in linear television and video-on-demand
We have a strong position in both linear television and video-on-demand Commercial TV viewing shares Commercial VOD 25-44 y Monthly reach, % of Finnish adult population, excl. Youtube 60% 35 Katsomo 50% 30 MTV 25 40% Ruutu 20 Nelonen Media 30% Netflix 15 20% DNF 10 10% Other (HBO, Viaplay, Chrome) 5
Slide 48: We implement Total TV strategy
To follow the changing consumer habits, we implement Total TV strategy FTA channels Monetizing content investments across AVOD platforms SVOD Combining reach and targeting opportunities 420,000 weekly for advertisers unique visitors 3.8M weekly reach 48 CMD 2018 Sanoma Media Finland
Slide 49: Clear number one in radio and developing audio-on-demand market
We are clear number one in radio and developing audio-on-demand market Commercial listening shares Supla – 25-44 y 60% Audio on Demand Nelonen Media 50% 300,000 40% app Bauer downloads 100,000 30% weekly users 20% 10% 41 minutes average 0% use time 2011 2012 2013 2014 2015 2016 2017 49 CMD 2018 Sano
Slide 50: We scale up our assets for growth
We scale up our assets for growth TV & video Radio & audio Stars and artists Marketing power Customer insight 50 CMD 2018 Sanoma Media Finland
Slide 51: We scale up our assets for growth
We scale up our assets for growth TV & video Radio & audio Festivals Acquisition Stars and artists of N.C.D. Production in March Marketing power 2018 Customer insight 51 CMD 2018 Sanoma Media Finland
Slide 52: Events market grows 7% annually
Events market grows 7% annually Estimated festivals and concerts market in Finland EUR million, tickets and ancillary sales Global trend: interest towards live 500 experiences as a counterweight to digital 400 Festivals have higher profitability than media in general - ancillary sales play 300 a
Slide 53: We aim to strengthen three key areas
We aim to strengthen three key areas Entertainment News, feature, lifestyle B2B 53 CMD 2018 Sanoma Media Finland
Slide 54: Local players have a significant share of the advertising market in Finland
Local players have a significant share of the total advertising market in Finland Total advertising spend in Finnish advertising by TV CPM price comparison Finland was EUR 1.2 bn category in 2017 in 2017 22 21 Share of search and social 9% 5% 25% media was approx. 15% 5% 17 17 16 15 (EUR 180 mil
Slide 55: Total media market flat, local media market to decline
Total media market expected to be flat, while the local media market will continue to decline Total media market, including Local media market development (online development excl. search and social media) search and social media in 10% 2015 - 2017: +0.4% Within the whole market: 5% internationa
Slide 56: A unique combination of long-term and short-term marketing solutions
We can offer a unique combination of long-term and short-term marketing solutions Why Sanoma Media Finland can uniquely support both? Reach that enables mass Sales focused Brand building and targeting / targeted / mass Integrated offering across audiences audiences media types Deep customer in
Slide 57: We expand our customer base and role in value chain
We expand our customer base and role in value chain SME sales through Routa Own media products 3rd party products Value added services for selected verticals Real estate Recruitment Marketing services to corporate customers 57 CMD 2018 Sanoma Media Finland
Slide 58: We aim to strengthen three key areas
We aim to strengthen three key areas Entertainment News, feature, lifestyle B2B 58 CMD 2018 Sanoma Media Finland
Slide 59: People continue to use both offline and online news
People continue to use both offline and online news Overall news consumption in growth Longer TIME AVAILABLE moment Interest in lifestyle Willingness and feature content to pay for news media Increasing reach of news content Shorter moment ENGAGEMENT Escape Explore 59 CMD 2018 Sanoma Media Finland
Slide 60: We have two strong, distinct news brands
We have two strong, distinct news brands In 2017: • Time spent Longer TIME AVAILABLE on site +16% moment • Digital subscriptions In 2017: by under 40yos Visits +4.5% + 40 % Time spent on site +13% Shorter moment ENGAGEMENT Escape Explore 60 CMD 2018 Sanoma Media Finland
Slide 61: Long-term HS scenario: cost benefits from digitalization
Long-term HS scenario: We gain clear cost benefits coming from digitalization HS subscriptions Print & digital in total 390 000 40 e/ Month Printing 40 % Paper 385 000 7 day Delivery 380 000 print 375 000 25 e/ Month 370 000 Digi + 15 e / 365 000 Print month digital 360 000 355 000 Consumer pricing,
Slide 62: Continuing to strengthen our market position
Continuing to strengthen our market position We improved our competitiveness and profitability We strengthen our positions in three areas: – Growing in entertainment – Transforming B2B offering and organization – Building on our unique position in the news media 62 CMD 2018 Sanoma Media Finland
Slide 63: Creating a European Champion in Learning
Sanoma Learning: Creating a European Champion in Learning John Martin CEO
Slide 64: Creating a European Champion in Learning
Creating a European Champion in Learning Organic growth in footprint markets Leading in Becoming a current Capturing synergies across borders European markets Champion Pursuing M&A in K12 and adjacent markets 64 CMD 2018 Learning
Slide 65: A leading position in some of the world's best education systems
A leading position in some of the world’s best education systems Serving 10 million pupils and 1 million teachers PISA score of European top performers + top 3 1 Japan 529 2 Estonia 524 #2 in Sweden 3 Canada 523 €23m Sales, 22% share 4 Finland 523 Market: 1.3 million pupils 6 Slovenia 509 7 Ireland
Slide 66: We lead in blended learning in advanced markets
We lead in blended learning in advanced markets Learning outcomes Student engagement Teacher efficiency World-class learning Integrated Centrally driven Marketing and sales and teaching design multichannel offering technology platforms that capability with strong skills, with a local enable synergie
Slide 67: Our methods save teachers' time and improve learning outcomes
Our methods save teachers’ time 8 hours/week and improve learning outcomes and student engagement …by supporting key activities in … with comprehensive We enable learning impact… the teaching and learning cycle… learning solutions Learning Instruction Outcomes * Prepare Administer 91% Teacher gu
Slide 68: Digital & data can future-proof our offering
Digital & data can future-proof our offering New impact, new pedagogies, new media Better insights enable Pre-defined learning Improving learning more specific and pathways effective interventions impact Tools for creating personal and coaching learning pathways - Outcomes “Teacher as a DJ” - Engage
Slide 69: Overall market remains stable while individual markets fluctuate
Organic growth Synergies Overall market remains stable while individual M&A markets fluctuate driven by local reforms Overall market value remains stable Overall market value expected to remain stable in the long term, with CAGR around Indexed to 2016 1,2 1% (2016-2020) Individual markets fluctu
Slide 70: We gained further market share in Poland in 2017
Organic growth Synergies We gained further market share in the reformed M&A segments in Poland in 2017 Exceptionally strong one-time market growth in Our share of total market 2017 due to two simultaneous curriculum reforms We put in extra effort and expenditure to 41% prepare 46 new courses W
Slide 71: Using Bingel, we strengthen our multichannel offering
Organic growth Synergies Using Bingel, we continue to strengthen M&A our multichannel offering across markets Bingel is a storified, adaptive learning platform for primary education Makes learning fun and engaging for pupils, while enabling teachers to provide increased personalization in their cl
Slide 72: Bingel used in almost all primary schools in Flanders
Organic growth Synergies Bingel is used in almost all primary schools in M&A Flanders and is growing fast in Finland and Sweden Share of primary school students using 84% >1bn >25k Bingel in Finland and Sweden teachers 33% of schools in exercises Flanders* use completed assigning Bingel since 2011 e
Slide 73: Working across borders to create a European Champion
Organic growth Synergies We are working across borders and throughout the M&A value chain to create a European Champion From five national leaders… …to an integrated Examples of ongoing European Champion “High Five” projects Investing in the future Customer facing applications Consolidating onto a
Slide 74: Our M&A strategy aims at three target areas
Organic growth Synergies Our M&A strategy aims at three target areas M&A Adjacent business Long-term growth Adjacent in current footprint potential: business markets Boost profitability through scale and synergies Strengthen market Core business in Core business outside positions in eco- Core cu
Slide 75: Creating a European Champion in Learning
Creating a European Champion in Learning Organic growth in footprint markets Leading in Becoming a current Capturing synergies across borders European markets Champion Pursuing M&A in K12 and adjacent markets 75 CMD 2018 Learning
Slide 76: Solid financial base for shareholder returns
Solid financial base for shareholder returns Markus Holm CFO & COO
Slide 77: Solid financial base for shareholder returns
Solid financial base for shareholder returns We have completed major Solid balance sheet with decreased leverage portfolio changes We continue to focus on Opportunities for profitability improvement Increasing profitability improvement especially in Learning dividend: 40-60% and cash generation
Slide 78: We have built a solid financial base
We have built a solid financial base Improved profitability Stable financial position Solid cash generation Around 13.6% 14% 5.1 11.3% 4.6 4.8 3.2 7.4% 6.2% 4.8% 1.7 105 111 54 23 -29 1135 155 150 181 802 801 786 392 119 84 2013 2014 2015 2016 2017 Outlook 2013 2014 2015 2016 2017 2013 2014 2015 201
Slide 79: Our leverage is at the long-term target level
Our leverage is at the long-term target level (< 2.5 net debt/adj. EBITDA) Our leverage has decreased rapidly: Net Net debt is improving EUR million debt / adjusted EBITDA from 3.6 at the end 7 of Q1 2017 to 2.0 at the end of Q1 2018 6 5 At the same time, net debt nearly halved to 4 EUR 439 mill
Slide 80: Balanced debt portfolio and lower net financial expenses
We have a balanced debt portfolio and lower net financial expenses Next refinancing early 2019 for Debt structure Maturity profile EUR million, 31 March 2018 EUR million, 31 March 2018 the EUR 300 million RCF The EUR 200 million bond will Bank account 50 be repaid or refinanced Other loans 17 4
Slide 81: The annual seasonality pattern is a characteristic of our business
The annual seasonality pattern is a characteristic of our business Our quarterly financial performance is Operational EBIT EUR million strongly affected by the seasonal pattern of 85 the Learning business: 75 – Q1 and Q4 are typically loss-making, while most 65 of net sales and earnings are accrue
Slide 82: We are targeting a higher cash conversion
We are targeting a higher cash conversion Our mid-term cash conversion * Free cash flow is increasing target is 60-70% EUR million 150 In 2017, cash conversion approx. 50% 100 50 Assumptions for key cash flow elements for 2018 0 Profitability improvement Lower net financing costs -50 Lower I
Slide 83: Headroom for acquisitions to increase to EUR 300-400 million
We expect headroom for acquisitions to increase to EUR 300-400 million… With our leverage at the target level (net debt / adj. EBITDA < 2.5), we estimate to have approx. EUR 300-400 million headroom for acquisitions in 2019, due to – Solid profitability – Improved free cash flow – Reduced leverage
Slide 84: We are fully committed to our dividend policy
…and we are fully committed to our dividend policy Dividend policy: Progressive dividend EUR Sanoma aims to pay an increasing dividend, equal to 40–60% of annual cash flow from 0,80 operations, after capital expenditure. 0,60 When proposing a dividend to the AGM, the Board of 55% 0,40 60% Directors
Slide 85: Building on a solid base for selective growth
Building on a solid base for selective growth We have completed major portfolio Resulting in: changes Solid profitability Growing cash flow We continue to focus on our Increasing dividends customers, profitability & cash flow… Equity ratio and leverage within long-term target … and increasin
Slide 86: Appendix
Appendix
Slide 87: Sanoma in 2017
Sanoma in 2017 Media Finland Net sales 2017 EUR 571 million News TV/Radio 44% non-print Online & Mobile NET SALES 11.5% margin Magazines other EUR 1,327 million 0 100 200 300 Media Netherlands NON-PRINT SALES EUR 440 million Magazines 40% Online & Mobile 30% non-print Distribution OPERATIONAL EBIT M
Slide 88: Sanoma Media Finland
Net sales Operational EBIT Sanoma Media Finland M€ 571 M€ 66 Leading media company in Finland Information, experiences, inspiration and entertainment through multiple media platforms: – Newspapers – TV – Radio Margin Employees (FTE) – Events – Magazines 11.5% 1,700 – Online and mobile channels
Slide 89: Sanoma Media Netherlands
Net sales Operational EBIT Sanoma Media M€ 440 M€ 68 Netherlands Dutch consumer media operations and the press distribution business Aldipress Leading cross media portfolio with strong brands and market positions in magazines, news, digital, events and e- commerce. Margin Employees Content and
Slide 90: Sanoma Learning
Net sales Operational EBIT Sanoma Learning M€ 318 M€ 56 Leading positions in countries with some of world’s best educational systems Solutions that drive higher learning outcomes, engagement and efficiencies Scalable technologies to support leadership in the digital transformation A clear st
Slide 91: Largest shareholders
Largest shareholders 31 May 2018 Largest shareholders Holding by category 31 May 2018 Number of shares 2,6 % 1. Jane and Aatos Erkko Foundation 39,820,286 24.4% 18,7 % 13,3 % 2. Antti Herlin 19,506,800 11.9% (Holding Manutas Oy: 11.91%, personal: 0.02%) 3. Robin Langenskiöld 12,273,371 7.5% 4,0 % 4.
Slide 92: Disclaimer
Disclaimer The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of Sanoma
Slide 93: Please contact our Investor Relations
Please contact our Investor Relations: Kaisa Uurasmaa, Head of IR & CSR M +358 40 560 5601 E kaisa.uurasmaa@sanoma.com ir@sanoma.com www.sanoma.com