Alma Media Oyj · OMXHEX:ALMA

Alma Media Oyj — Shareholder Meeting (March 2019)

29 slides from Alma Media Oyj's shareholder meeting presentation, Mar 15, 2019

  1. Slide 1: CEO's statement

    Annual General Meeting of Alma Media Corporation, 15 March 2019 CEO’s statement Kai Telanne, President and CEO

  2. Slide 2: Financial Statements 2018

    Financial Statements 2018

  3. Slide 3: Revenue and adjusted operating profit

    Revenue and adjusted operating profit 16.2% 13.9% 10.0% 8.0% 353 367 355 7.2% 295 57 292 51 35 21 23 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Revenue 2014–2018 Adjusted operating profit 2014–2018

  4. Slide 4: Revenue split

    Revenue split Q4/18 48.4% MEUR MEUR 400 50% 45% 350 38 36 40% 300 23 35% 250 17 157 Services 30% 170 200 25% Digital 20% 150 247 Print 15% 100 172 10% Digital, share of 149 revenue 50 5% 0 0% Revenue 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

  5. Slide 5: Digital business revenue

    Digital business revenue 48.0% 170 157 133 95 104 % 78 84 5.8% 49 57 36 44 40 17 27 MEUR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Share of digital business of Group revenue Digital growth expected to continue, however GDP growth predicted to slow down

  6. Slide 6: International operations

    International operations Revenue 2018 % 25/75 Croatia Baltics Slovakia 2 % 3% Operatings profit 2018 % 3% Czech Reb. 12 % 41/59 Sweden 5% Revenue Personnel 2018 % by country 33/67 Finland 75 % 89 37 262 265 2013 2014 2015 2016 2017 2018 Finland International Operations Not Allocated

  7. Slide 7: M&A and divestments

    M&A and divestments In the years 2010–2018, the annual pre-tax return on investments has been 12% of the invested capital. Jobote AutoJerry Mediuutiset Talentum UusiSuomi Katsastushinnat.fi Monster Urakka- JMTieto NettiKoti Talosofta Alkali maailma.fi AutoSofta Rantapallo 2014 2015 2016 2017 2018 Co

  8. Slide 8: Cash flow, EPS and dividend

    Cash flow, EPS and dividend 0,80 0,70 Cash flow fr.operat.activities per share EPS Dividend per share 0,60 0,50 EUR 0,40 . 0.68 0,30 0.63 0.51 0.51 0,20 0.43 0.39 0.32 0.35 0.35 0.24 0,10 0.20 0.19 0.20 0.13 0.12 0.16 0.10 0.12 0,00 2013 2014 2015 2016 2017 2018 Effective dividend yield 2018: 6.3%

  9. Slide 9: Gearing and equity ratio

    Gearning and equity ratio Net debt, MEUR and gearing, % Equity ratio, 2014–2018 2014–2018 68.5% 57.5% 59.4% 50.9% 45.7% 42.6% 42.5% MEUR 41.1% 71.1 76.2 25.4% 57.1 40.2 1.1% 2.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

  10. Slide 10: Digital marketplaces, multichannel content

    DIGITAL MULTICHANNEL CONTENT MULTICHANNEL CONTENT MARKET PLACES AND B2C SERVICES AND SERVICES FOR PROFESSIONALS

  11. Slide 11: Revenue and adjusted operating profit by segment

    Revenue and adjusted operating profit by segment Revenue (MEUR) Q4/2018 Adjusted operating profit (MEUR) Q4/2018 0.9 0.8 1.7 2.3 -1.1 -5.8 2.4 17.1 97.1 91.9 11.3 Q4 2017 Alma Alma Talent Alma Q4 2018 Q4 2017 Alma Alma Alma Group Q4 2018 Markets Consumer Markets Talent Consumer operations

  12. Slide 12: Alma Markets

    Alma Markets Revenue Adjusted operating profit 35.7% 34.1% 27.8% 96.4 34.4 83.2 28.3 69.4 19.3 MEUR 2016 2017 2018 2016 2017 2018

  13. Slide 13: Alma Talent

    Alma Talent Revenue Adjusted operating profit 14.2% 12.9% 10.9% 114.0 113.2 108.9 14.6 15.5 12.4 MEUR 2016 2017 2018 2016 2017 2018

  14. Slide 14: Alma Consumer

    Alma Consumer Revenue Adjusted operating profit 9.7% 9.0% 9.5% 16.7 170,2 171.2 15.4 14.4 151.7 2016 2017 2018 MEUR 2016 2017 2018

  15. Slide 15: Quality of work life – Alma personnel survey

    Quality of work life – Alma personnel survey • A QWL study measuring the quality of Quality of work life (QWL) index work life (the performance and 80,0 % productivity) is carried out within Alma 75,0 % 75.3% 76.7% Media annually. 70,0 % • Alma’s quality of work life (QWL) index is 65,0 % high compa

  16. Slide 16: Total share return

    Total share return Alma Media vs. 350 peer group index 1/2014–12/2018 Osakkeen kokonaistuotto Tammikuu 2014 - Joulukuu 2018 300 250 200 150 100 50 1.1.2014 1.1.2015 1.1.2016 1.1.2017 1.1.2018 1.1.2019 Indeksi Alma Media Oyj data: Factset

  17. Slide 17: Operating environment

    Operating environment

  18. Slide 18: GDP growth and publishing

    GDP growth and publishing Publishing differentiated from GDP growth in 2012 120 110 100 90 80 70 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005=100, seasonally adjusted production trend indicator 2005=100, seasonally adjusted publishing Source: Finnmedia, Statistics Fi

  19. Slide 19: Media advertising investments in Finland in 2018

    Media advertising investments in Finland in 2018 Source: Kantar TNS

  20. Slide 20: Online advertising in Finland

    Online advertising in Finland A-LEHDET OTHER FINNISH MEDIA Share of international operators of Finnish digital 2 % (2%) COMPANIES advertising market, % 11 % (12%) 60% 53% 48% 49% 49% ALMA MEDIA 50% 42% 42% 44% Appr. 30 % (30%) 40% 30% 29% 186 20% SANOMA MEUR 10% 39 % (38%) MTV MEDIA 7 % (7%) 0% OTAV

  21. Slide 21: Growth in Alma's digital customer base

    Growth in Alma’s digital customer base Alma Media digital subscription customer base 2013–2018 Year 2018 Kauppalehti + 44% Aamulehti + 47 % Satakunnan Kansa +48 %

  22. Slide 22: GDP forecasts in Alma's operating countries 2018-2020E

    GDP forecasts in Alma’s operating countries 2018- 2020E 2018 2019 2020 4,7 % 5% 4,2 % 4,1 % 3,5 % 3,6 % 3,5 % 3,1 % 2,7 % 2,6 % 2,7 % 2,5 % 3% 2,4 % 2,4 % 1,9 % 1,7 % 1% -1% Estonia Latvia Lithuania Slovakia Finland 2018 2019 2020 5,1 % 4,8 % 5% 3,4 % 3,5 % 3,2 % 2,9 % 2,9 % 2,7 % 2,8 % 2,7 % 3% 2,6

  23. Slide 23: Strategy

    Strategy 23

  24. Slide 24: Long-term financial targets - updated at the end of 2018

    Long-term financial targets - updated at the end of 2018 Digital business growth (%) Return on investment Dividend payout ratio (%) 30% ROI (%) 25% 100% 25% New target: 20% New target: Unchanged: 50% 80% 20% >12% >17% 15% 60% 15% 10% 40% 10% 5% 20% 5% 12% 10% 28% 17% 9% 10% 7% 10% 18% 22% 63% 92% 78

  25. Slide 25: How we build value

    How we build value CUSTOMER- OPERATIONAL FINANCIAL CENTRIC AGILITY SOLIDITY LOCALITY Strong brands and market Successful digital transformation. Trimmed business operations. position. Audience. Focus on profitability and strong Market proximity and Reach. balance sheet. understanding local customers

  26. Slide 26: Expanding our offering from media to related digital services

    Expanding our offering from media to related digital services. Fullfilling the needs of our users’ everyday life as consumers and as professionals in business.

  27. Slide 27: Moving along the value chain

    Moving along the value chain: from buying a car Find or sell/ Take care/repair lease a car your car to mobility Manage your sales or renting Inspect your car a fleet

  28. Slide 28: Outlook

    Outlook In 2019, Alma Media expects its full-year revenue to remain at the previous year’s level and its adjusted operating profit to increase compared to 2018. The full-year revenue for 2018 was MEUR 354.6 and the adjusted operating profit was MEUR 57.3.

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