Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Shareholder Meeting (March 2018)

37 slides from Sanoma Oyj's shareholder meeting presentation, March 2018

  1. Slide 1: Sanoma 2017

    Sanoma 2017 Susan Duinhoven President and CEO, Sanoma Corporation

  2. Slide 2: Overview of presentation

    Overview of presentation 1. Highlights 2017 2. Three Business Cases 2017 3. Dividend Proposal 4. Looking forward to 2018 and beyond 5. 2017 Financial Results in Detail

  3. Slide 3: Overview of presentation

    Overview of presentation 1. Highlights 2017 2. Three Business Cases 2017 3. Dividend Proposal 4. Looking forward to 2018 and beyond 5. 2017 Financial Results in Detail

  4. Slide 4: Sanoma in 2017: Our Operational Geographies

    Sanoma in 2017 Our Operational Geographies Sanoma Corporation Finland • Media Sweden • learning Sanoma Sanoma Sanoma • Learning Media Media Learning Finland BeNe Netherlands • Media EUR EUR EUR • Learning Poland 571 437 320 • Learning million million million Net sales: EUR 1,327 million All income s

  5. Slide 5: 2017: A year of change – major portfolio restructuring completed

    2017: A year of change – major portfolio restructuring completed Media BeNe Media Finland Learning  Divestment of Dutch TV operations SBS  Sanoma Media Finland increased its share in  DeBoeck in Belgium fully  Acquisition of Veronica Magazine (TV Guide) the SME marketing company Routa integrated

  6. Slide 6: Composition of Net Sales changed - lower dependency on advertising

    Composition of Net Sales changed - lower dependency on advertising Media BeNe Media Finland Learning 60% 40% 50% 50% 40% 30% 40% 30% 2016 30% 20% 20% 20% 2017 10% 10% 10% 0% 0% 0%

  7. Slide 7: Finnish measured media advertising markets

    Finnish measured media advertising markets FY15 FY 16 FY 17 Newspapers -6% -4% -11% Magazines -14% -9% -6% TV -4% -1% -5% Radio 3% 3% 4% Online 7% 13% 7% Total market -2% 1% -3%

  8. Slide 8: Second year of solid operational EBIT improvement

    Second year of solid operational EBIT improvement Net debt to adjusted EBITDA 1 200 7  Profitability improved by 21% 6 Operational EBIT EUR 181 million (2016: 150) 1 000 5  Net sales were stable 800 4 EUR 1,327 million (2016: 1,322) 600 3 Long  Operational EPS improved by 56% 400 < 2.5 term EUR 0

  9. Slide 9: Performance vs. peer group in line with our earlier ambitions

    Performance vs. peer group in line with our earlier ambitions EBIT in top tertile of companies with Sanoma’s composition Equivalent Peer Group Sanoma 2017 Peer group EBIT margins, % Top tertile average % % operational EBIT operational EBIT 30 25 19% 14% 20 11% 13% 15 13,0% 13,6% 10 5 0 TV News Magaz

  10. Slide 10: Spirit in the organisation also improved further

    Spirit in the organisation also improved further People Power Rating ®  Solid improvement in the engagement score  Renewed organisational structure in place in SMBeNe following divestments 71.1  Passionate and highly professional teams throughout the organisation 69.9  Focus on investment in cap

  11. Slide 11: Overview of presentation

    Overview of presentation 1. Highlights 2017 2. Three Business Cases 2017 3. Dividend Proposal 4. Looking forward to 2018 and beyond 5. 2017 Financial Results in Detail

  12. Slide 12: Sanoma Media Finland - No. 1 media player in Finland

    Sanoma Media Finland - No. 1 media player in Finland Strong media brands  Strong media brands #1 #1/2 #1 #1 #1/2 news TV radio magazines classifieds  We reach 97 % of all Finns every week  Unique offering and proposition to advertisers  Successful digital transformation  Solid improvement in pr

  13. Slide 13: Helsingin Sanomat subscription base increased

    Helsingin Sanomat subscription base increased HS subscriptions, print & digital in total  HS has developed a number of subscription products to fit consumer 390000 387.000 needs 385000 2017 – HS digital and lately launched HS Mini for young and single user households – Weekend print + digital 38000

  14. Slide 14: Media Netherlands – Three strong asset groupings

    Media Netherlands – Three strong asset groupings Value growth through NU.nl & Data business NU.nl and data business Creating growth in high value business Special Blockbuster Interest Media Media Brands Brands Cross media Selected expansion with high opportunities with cash conversion high cost effi

  15. Slide 15: NU.nl – largest digital news platform in the Netherlands

    NU.nl – largest digital news platform in the Netherlands Average unique reach (million) Daily Monthly  Digital-only news platform since 1999 2.0 7.0  800 million page views monthly  High organic traffic (90%) due to 1.6 6.4 large volume of installed apps  Monthly reach 47 % in NL 1.4 5.9 1.4 5.1

  16. Slide 16: Scoupy – cashback app targets FMCG advertisers

    Scoupy – cashback app targets FMCG advertisers CONSUMER BUSINESS-TO-BUSINESS VALUE PROPOSITION VALUE PROPOSITION  Discount and trials on new  Boost new products and get products feedback  Scan receipt of purchase to get  Independent of retailers and cashback influence customer behaviour directly

  17. Slide 17: Combining Scoupy and NU.nl: Consumer engagement on high reach platform

    Combining Scoupy and NU.nl: Consumer engagement on high reach platform € HIGH RELEVANCE Coca Cola can LOW direct retarget Pepsi drinkers LOW REACH HIGH

  18. Slide 18: Nowa Era is the largest educational publisher in Poland

    Nowa Era is the largest educational publisher in Poland • Educational market with a 50 million population • “One Stop Shop” model combining publisher and distributor role • Educational reform in accordance with new law signed in January 2017 • Nowa Era published 46 new methods by September 2017 • Un

  19. Slide 19: Nowa Era gained market during the recent years of change

    Nowa Era gained market during the recent years of change in the Polish educational market 45% 41% 40% 34% 35% 35% 30% 31% 30% 29% 25% 25% 20% 15% 10% 5% 0% 2011 2012 2013 2014 2015 2016 2017

  20. Slide 20: Overview of presentation

    Overview of presentation 1. Highlights 2017 2. Three Business Cases 2017 3. Dividend Proposal 4. Looking forward to 2018 and beyond 5. 2017 Financial Results in Detail

  21. Slide 21: The Board proposes a dividend of EUR 0.35 per share

    The Board proposes a dividend of EUR 0.35 per share Dividend development 2013–2017 EUR Oper. CF - capex / share DPS  For 2017, Board proposes dividend of EUR 0.35 (2016: 0,80 0.20) per share 0,70 – 55% of operational cash flow minus capex 0,60 – To be paid in two instalments, 0,50 EUR 0.20 on April

  22. Slide 22: Overview of presentation

    Overview of presentation 1. Highlights 2017 2. Three Business Cases 2017 3. Dividend Proposal 4. Looking forward to 2018 and beyond 5. 2017 Financial Results in Detail

  23. Slide 23: Sanoma Executive Management Team

    Sanoma Executive Management Team Susan Duinhoven Markus Holm Marc Duijndam Pia Kalsta John Martin President and CEO CFO and COO CEO, Media BeNe CEO, Media Finland CEO, Sanoma Learning

  24. Slide 24: Introducing Marc Duijndam

    Introducing Marc Duijndam CEO Sanoma Media BeNe since Jan 1, 2018  More than 20 years work experience in media in the Netherlands and Belgium focussed on online and data businesses  From BtoB sales account manager to CEO: started as account manager for Startpagina.nl (now part of Sanoma Media BeNe

  25. Slide 25: Sanoma in 2018 and beyond

    Sanoma in 2018 and beyond Major portfolio Continued focus on Increasing focus on Resulting in changes completed profitability & growth cash flow  Improved profitability  Constant cost  Market and  Stronger cash Smaller portfolio innovations geographic generation adjustments in our expansion in c

  26. Slide 26: Growth through bolt-on acquisitions both in existing businesses and adjacent areas

    Growth through bolt-on acquisitions both in existing businesses and in adjacent areas  Small synergetic, bolt-on acquisitions – Fitting within the same eco-systems and customer groups – Consolidation acquisitions building on Sanoma’s existing businesses – Adjacent businesses utilizing our core stre

  27. Slide 27: Outlook for 2018

    Outlook for 2018 Sanoma expects that the Group’s  Consolidated net sales, adjusted for structural changes, will be slightly below 2017  Operational EBIT margin will be around 14% The outlook is based on the assumption of the consumer confidence and advertising markets in the Netherlands and Finlan

  28. Slide 28: Overview of presentation

    Overview of presentation 1. Highlights 2017 2. Three Business Cases 2017 3. Dividend Proposal 4. Looking forward to 2018 and beyond 5. 2017 Financial Results in Detail

  29. Slide 29: Sanoma 2017 – Markus Holm, CFO and COO

    Sanoma 2017 Markus Holm CFO and COO, Sanoma Corporation

  30. Slide 30: Key figures 2017

    Key figures 2017 Operational EBIT by SBU in 2017 MEUR  Net sales EUR 1,327 million (2016: 1,322) 67 68 66  Operational EBIT EUR 181 million (2016: 150) or 13.6% of net sales 57 57 (2016: 11.3%) 50  Sanoma divested its Dutch FTA TV operations, SBS, for EUR 237 million  Items affecting comparabili

  31. Slide 31: Media Finland: Significant profitability improvement

    Media Finland: Significant profitability improvement Picture / Media Finland Net sales  Net sales were stable EUR 571million  Non-print sales grew by 4% (2016: 581)  Operational EBIT improved 33% driven by continued cost Operational EBIT and process innovations EUR 66 million  Operational EBIT m

  32. Slide 32: Media BeNe: A year of change

    Media BeNe: A year of change Net sales  Net sales declined mainly due to the divestment of EUR 437million Kieskeurig.nl (2016: 459)  Subscription sales grew Operational EBIT  Operational EBIT improved slightly EUR 68 million  Operational EBIT margin improved (2016: 67) – Cost innovations had a p

  33. Slide 33: Learning: Net sales growth of 13%

    Learning: Net sales growth of 13% Picture/Learning Net sales  Growth was strongest in Poland with market share gain in EUR 320 million a strongly grown market due to curriculum reform – Net sales grew also in Finland and Belgium (2016: 283)  Operational EBITDA improved by13 % Operational EBIT EUR

  34. Slide 34: Free cash flow on a good level

    Free cash flow on a good level 150 Quarterly 12mr  Free cash flow was EUR 104 million (2016: 124) 100 50  Higher EBITDA Improved cash flow  Significantly lower financial cost 0  Non-recurring restructuring costs -50  Higher taxes paid Weakened cash flow -100  Working capital change

  35. Slide 35: Leverage below the long-term target level

    Leverage below the long-term target level Net debt 1 200 7  Net debt to adjusted EBITDA at 1.7 at the end of 2017 (2016: 3.2) 1 000 6  EUR 237 million from SBS divestment was used to reduce debt 5 800  Ned debt EUR 392 million at the end of 2017 (2016: 786) 4 600  Equity ratio recovered to 38.5%

  36. Slide 36: Significantly lower financing costs

    Significantly lower financing costs Debt structure EUR 418 million, 31 December 2017 17  Net financial items decreased to EUR -23 million (2016: -37) 2  Average interest rate down to 2.1% (2016: 2.8 %) Bond 3.5% Term loan CPs 149 200  EUR 200 million of Bond 2017 was repaid in March, using Other

  37. Slide 37: Sanoma as an investment

    Sanoma as an investment Operational EBIT margin Dividend development 2013–2017 Approx. EUR/share Osinkopolitiikka 14%  Major portfolio changes completed 13,6 % 0,35  Focus on customer and profitability Sanoman tavoitteena on 11,3 %  Stronger cash generation jakaa kasvavaa osinkoa, joka 0,20 0,20

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