Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q4 2014 Earnings Presentation
44 slides from Alma Media Oyj's earnings presentation, Feb 13, 2015
Slide 1: Alma Media Q4 and FY2014
Alma Media Q4 and FY2014 Kai Telanne, President and CEO Juha Nuutinen, CFO 13 February 2015
Slide 2: Agenda
Agenda Highlights Market development Financial development Dividend proposal Strategy and outlook Q&A 2
Slide 3: Q4/2014 and FY2014 highlights
Q4/2014 and FY2014 highlights • Alma Media’s revenue nearly remained on last year’s level. Operating profit excluding non-recurring items decreased to MEUR 21.4. • As the economy in Finland continued to be weak, the development of the company’s business in Finland in 2014 was also weak in print medi
Slide 4: Revenue Q4/2014
Revenue Q4/2014 Revenue, MEUR • Revenue for the quarter decreased by 0.9% to IFRS MEUR 76.6. -6,5% -0,9% 90 • Content revenue decreased by 3.5%. Content 80 revenue from digital channels did not completely cover the decline in print content 70 10,2 10,2 revenue. 60 • Advertising revenue increased by
Slide 5: Revenue 2014
Revenue 2014 • The Group’s full-year revenue fell by Revenue, MEUR IFRS 1.6% and was MEUR 295.4. -6,2% -1,6% 350 • Content revenue declined by 4.5% due to lower circulations of print media. 300 37,6 38,8 • Advertising revenue declined by 0.6%. Digital 250 advertising sales nearly equalled print medi
Slide 6: Operating profit Q4/2014
Operating profit Q4/2014 EBIT, MEUR • Operating profit excluding non-recurring IFRS items decreased by 11.6% to MEUR 5.6. -25,0% • The operating profit includes net non- 7 -11,6% recurring items of MEUR -0.8. 6 6,4 • Total expenses grew by 0.7% year-on- 5 5,6 year to MEUR 73.8. 4 • The increase in e
Slide 7: Operating profit 2014
Operating profit 2014 EBIT, MEUR • Operating profit excluding non-recurring IFRS items decreased by 11.5% to MEUR 21.4. -27,8% • The operating profit includes net non- 30 -11,5% recurring items of MEUR -0.7. 25 2,8 • Total expenses excluding non-recurring 24,2 items decreased by 1.6% to MEUR 277.9.
Slide 8: Growth in digital business
Growth in digital business 100 32,0 % 35% Segment’s share of the 90 28,1 % Group’s digital revenue 30% 80 24,3 % 4,3 % 12,0 % 70 25% 60 18,0 % 20% 15,7 % 50 95 24,0 % MEUR 12,9 % 59,8 % 40 13,1 % 84 15% 78 30 57 10% 44 49 20 40 5% 10 Regional Media National Consumer Media 0 0% Financial Media and Bu
Slide 9: Market development in Finland
Market development in Finland
Slide 10: Change in advertising 12/2013 – 12/2014
Change in advertising 12/2013 – 12/2014 30% 25% Change % 20% 2014 vs. 2013 15% Newspapers -8.3 10% Magazines -15.6 5% TV -3.5 0% Radio +9.4 -5% Internet +12.3 -10% Total -3.5 -15% Advertising sales total, chg % Newspaper advertising, chg % Internet advertising, chg % Source: TNS Media Intelligence 1
Slide 11: Advertising declined across all industries
Advertising declined across all industries Total market, change from Q1-Q4 2013 Advertising in Q1-Q4 14 MEUR -4,3 % Retail Retail 228 -5,9 % Motor v. Motor vehicles 89 -0,4 % Food & bev. Food & beverages 88 -2,6 % Houses Houses and premises 45 -3,1 % Entert Entertainment 43 -0,7 % Tourism Tourism an
Slide 12: Financial review
Financial review Juha Nuutinen, CFO
Slide 13: Long-term financial targets
Long-term financial targets Alma Media’s 2011 2012 2013 2014 Target financial targets level Digital business 16.3% 36.8% 8.4% 11.9% > 15% growth Return on 26.1% 13.8% 10.0% 9.7% > 15% Investment (ROI), % Dividend payout 103% 45% 50% 63%** > 50% ratio* * Includes capital repayment to shareholders. **
Slide 14: Operating profit decreased in the fourth quarter
Operating profit decreased in the fourth quarter Revenue, MEUR Operating profit, MEUR 90 8 80 7 7,0 77,3 76,6 6 6,4 70 75,7 6,3 72,7 70,5 5 5,6 60 4 50 3 0,7 40 2 2,5 30 1 0 -0,2 20 -0,5 -0,8 -1 10 -2,0 -2 0 -3 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Non-recurring items 14
Slide 15: Content revenue decreased, advertising sales unchanged from the previous year
Content revenue decreased, advertising sales unchanged from the previous year Content revenue, MEUR Advertising revenue, MEUR 0,0 1,0 -0,2 -0,4 0,0 0,2 -0,6 +0,6% -0,8 -1,0 -1,0 -1,0 -1,7% -1,2 -1,2 -2,0 -1,4 -3,5% -1,6 -3,0 -3,9% -1,8 -3,8 -2,0 -4,0 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q4 13 Q1 14 Q2 14 Q
Slide 16: Digital Consumer Services Q4/2014
Digital Consumer Services Q4/2014 • Revenue grew by 14.1% to MEUR 14.7. • Revenue from operations in Finland was on a par Revenue and operating profit, with the comparison period. MEUR & % Excluding non-recurring items • Recruitment service revenue increased by 23.4% and accounted for 69.5% of the s
Slide 17: Digital Consumer Services in 2014
Digital Consumer Services in 2014 • Revenue grew by 6.1% to MEUR 55.8. Revenue and operating profit, • The devaluation of the Czech koruna in November 2013 decreased the euro revenue by MEUR 1.1. MEUR & % Excluding non-recurring items • The revenue for the comparison period includes +6,1% 60,0 30% M
Slide 18: Financial Media and Business Services Q4/2014
Financial Media and Business Services Q4/2014 • Revenue declined by 9.0% to MEUR 14.0. Revenue and operating profit, • The divestment of the BNS business had an MEUR & % effect of MEUR 1.1 on the decrease in revenue. Excluding non-recurring items 17,0 -9,0% 30% • Digital business accounted for 42.5%
Slide 19: Financial Media and Business Services in 2014
Financial Media and Business Services in 2014 • Revenue declined by 6.7% to MEUR 53.0. Revenue and operating profit, • The divestment of the BNS business had an effect MEUR & % of MEUR 2.1 on the decrease in revenue. Excluding non-recurring items • Digital business accounted for 43.0% of revenue. 70
Slide 20: National Consumer Media Q4/2014
National Consumer Media Q4/2014 • Revenue declined by 9.6% to MEUR 11.2. Revenue and operating profit, • Online business accounted for 26.6% of the MEUR & % segment’s revenue. Excluding non-recurring items 14,0 -6,0% -9,6% 30% • Content revenue decreased by 6.3% due to a decline in Iltalehti’s circu
Slide 21: National Consumer Media in 2014
National Consumer Media in 2014 • Revenue declined by 4.2% to MEUR 46.9. Revenue and operating profit, • The share of online business of the MEUR & % Excluding non-recurring items segment’s revenue grew to 27.0%. 60,0 30% -4,2% • Content revenue declined by 7.8%. • Advertising sales increased by 4.8
Slide 22: Regional Media Q4/2014
Regional Media Q4/2014 • Revenue increased by 0.2% to MEUR 38.3. • Digital business accounted for 2.8% of revenue. Revenue and operating profit, MEUR • Content revenue decreased by 2.8% due to the Excluding non-recurring items declining circulations of printed newspapers. 45,0 30% -1,5% +0,2% • Adve
Slide 23: Regional Media in 2014
Regional Media in 2014 • Revenue decreased by 1.3% to MEUR 145.2. • Digital business accounted for 2.6% of revenue. Revenue and operating profit, • Content revenue decreased by 3.1% due to the MEUR declining circulations of printed newspapers. Excluding non-recurring items 200,0 30% • Advertising sa
Slide 24: Cash flow from operating activities
Cash flow from operating activities 16,7 20,0 15,0 10,0 11,3 8,7 MEUR 5,0 6,2 0,0 11,3 -5,0 -10,0 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 24
Slide 25: Interest-bearing liabilities
Interest-bearing liabilities Net debt Q2/2012-Q4/2014 Net debt distribution 120 Q4/2014 100 97,6 Financial leasing 69.6 80 82,1 79,7 80,3 Financial loans 8.5 MEUR 71,1 60 62,3 Commercial 5.0 papers 40 Cash and cash -12.0 equivalents 20 Total 71.1 0 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2
Slide 26: Key indicators
Key indicators Equity ratio, % Gearing, % 45 120 40 42,6 110,5 100 35 34,4 30 80 25 60 68,5 20 15 40 10 20 5 0 0 2013 2014 2013 2014 26
Slide 27: Earnings per share and equity per share
Earnings per share and equity per share 0,08 -0,03 1,4 0,05 0,06 1,2 1,14 1,17 0,04 0,07 0,06 0,02 1,0 0,44 0,47 0,00 -0,01 0,8 -0,02 0,6 -0,04 -0,09 -0,06 0,4 0,70 0,70 -0,08 0,2 -0,10 -0,12 0,0 Q4 2013 Q4 2014 Q4 2013 Q4 2014 Non-recurring items Retained earnings EPS wo non-recurring items Restric
Slide 28: Balance sheet
Balance sheet MEUR Q4 2014 Q4 2013 Intangibles and goodwill 107,9 110,9 Tangibles 76,2 86,3 Associated companies 25,7 25,5 Inventory 1,3 1,4 Receivables 33,1 34,3 Cash 12,0 12,3 Assets 256,1 270,7 Equity 103,7 88,3 Reserves-obligatory 0,4 4,2 Pension liabilities 2,7 2,6 Ib debt 83,0 109,9 Non-Ib deb
Slide 29: Dividend proposal
Dividend proposal Proposal by the Board of Directors to the Annual General Meeting of 17 March 2015. On 31 December 2014, the Group’s parent company had distributable funds totalling EUR 179,932,379 (23,905,611). No essential changes in the company’s financial standing have taken place after the end
Slide 30: Strategy and outlook
Strategy and outlook Kai Telanne
Slide 31: The focal points of the implementation of the strategy in 2014
The focal points of the implementation of the strategy in 2014 Multi-channel Marketing Resources and Digital services content solutions expertise We will build new capacities, seek efficiency and 31 accelerate growth in digital services and media.
Slide 32: Multi-channel content
Multi-channel content Multi-channel content
Slide 33: IL's new mobile applications well received
Multi-channel IL’s new mobile applications well content received • Iltalehti’s renewed mobile applications launched in Q3 have substantially increased the application-based consumption of Iltalehti’s content. • Feedback from users has been positive: the applications are perceived as more modern, fas
Slide 34: The new Kauppalehti online and on mobile
Multi-channel The new Kauppalehti online and on content mobile • Kauppalehti’s online service was redesigned at the beginning of January 2015 with regard to its content, visual style and technology. • The redesign shifts the focus of Kauppalehti’s content production increasingly to the online and mo
Slide 35: Aamulehti Hetki – a condensed digital news package for the afternoon
Multi-channel Aamulehti Hetki content – a condensed digital news package for the afternoon • Aamulehti launched its paid digital afternoon edition, Hetki (“Moment”) in January 2015. • Hetki is a summary of the day’s news and stories published online and on mobile. It always includes new stories, som
Slide 36: Digital services
Digital services Digital services
Slide 37: JM Tieto becomes part of Alma Media
Digital services JM Tieto becomes part of Alma Media • Alma Media acquired full ownership of JM Tieto in January 2015. The Group’s previous holding was 20%. • In spring 2015, JM Tieto will be reorganised to constitute part of the Kauppalehti Information Services business operations. • In addition to
Slide 38: The redesigned job search service of LMC in the Czech Republic
The redesigned job search service of Digital services LMC in the Czech Republic • LMC, which is part of Alma Career, redesigned its Job.cz service in October 2014. • The aim was to refresh the visual style of the website, improve its usability and attract more users to the service • The launch of th
Slide 39: City24 business sold to Estonian buyer
Digital services City24 business sold to Estonian buyer • In November 2014, Alma Media sold its City24 business to Koha Capital, an Estonian venture capital company. • Alma Media had acquired the Estonian operations of the City24 housing portal in 2005 and subsequently expanded its operations to sev
Slide 40: Resources and expertise
Resources and expertise
Slide 41: Regional Media goes digital with Etukeno
Resources and Regional Media goes digital with expertise Etukeno • Alma Regional Media’s Etukeno project, which is aimed at increasing digitality in the operations of regional and local newspapers, has progressed to the future workshop stage. • The first workshops were organised in January, and duri
Slide 42: Alma Manu joins distribution cooperation
Resources and Alma Manu joins distribution expertise cooperation • Alma Manu Oy is becoming a founding partner in a new network company established by early morning delivery companies. • The purpose of the new company is to sell and market the early morning delivery companies’ distribution network o
Slide 43: Outlook
Outlook 13 February 2015 Low interest rates, a weaker euro and lower oil price improve the chances for growth in the long run. However, in 2015, economic growth is still expected to remain weak in Europe and, in particular, in Finland. The weak overall economic growth has an impact on advertising vo
Slide 44: Thank you! Questions?
Thank you! Questions? Upcoming events in the investor calendar: - Q1 result 30 April 2015