Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Investor Presentation (February 2023)
27 slides from Alma Media Oyj's investor presentation, February 2023
Slide 1: Alma Media in the Digital Frontline
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST Q4 2022 1
Slide 2: Strong market position and leading brands in key areas
Strong market position and leading brands in key areas RECRUITING #1 Czech Republic prace.cz, jobs.cz #1 Slovakia profesia.sk 1 #1 Croatia mojposao.net #3 Finland jobly.fi 1 #1 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia v
Slide 3: Business Segments and drivers for growth
Business Segments and drivers for growth Expanding traditional job Offering market leading Leading business media boards and recruitment industry verticals for buyers and expanding to digital advertising to career sellers with comprehensive information services for development and staffing, digital
Slide 4: Q4 2022 Highlights
Q4 2022 Solid performance in a turbulent environment – FY 2022 Highlights was the best year in Alma Media's history REVENUE* (MEUR) ADJUSTED OPERATING PROFIT* (MEUR) (% OF REVENUE) 12.1% 20.2% 23.8 % 22.2 % 19.7 % 230 275 309 45.4 61.1 73.4 2020 2021 2022 2020 2021 2022 * Continuing operations • Sol
Slide 5: Alma Career: demand for labour remained strong in Q4
Alma Career The demand for labour remained strong in Q4 – completing the second to none FY 2022 REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY OPERATING MARGIN (%) Q4/2022 (REVENUE CHANGE IN BRACKETS) Czech Rep., 60% (+20.7%) 46.0 % 41.5 % 34.0 % 36.9 % 30.8 % Slovakia, 15% (+19.7%)
Slide 6: Invoicing & revenue recognition in Alma Career
Invoicing & revenue recognition in Alma Career 18,000 16,000 14,000 12,000 KEUR 10,000 8,000 6,000 4,000 2,000 - 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2019 2020 2021 2022 Revenue Invoicing KPIs (monthly averages in thousands) 2022
Slide 7: Alma Consumer: Stronger headwinds in Q4, but a solid full-year result
Alma Stronger headwinds in Q4, but a solid full-year result Consumer REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q4/2022 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 26.9 % Media and ad-financed 24.8 % 24.4 % 21.8 % services 52% (-1.8%) 20.4 % Mobility 24% (+0.3%) Housing 17% (
Slide 8: Alma Talent: progress on the strategic digital transformation
Despite the economic and market headwinds, good Alma Talent progress on the strategic digital transformation REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q4/2022 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 18.9 % 21.7 % 21.7 % 20.5 % 17.9 % Alma Talent Media 56% (-4.8%) Al
Slide 9: Continuing the renewal of portfolio – net investments of MEUR 200
Continuing the renewal of portfolio – net investments of MEUR 200 to digital transformation and growth INVESTMENTS OF WITH A STRONG FOCUS ON DIGITAL BUSINESS Alma Mediapartners (35%) Techloop AutoJerry Kolektiv Nettix Katsastushinnat.fi DIAS (80%) Alma Career (17%) Talosofta Suomen Tukkuautot Muutto
Slide 10: Alma Media strategy
Alma Media strategy TRANSFORM THE CORE 1. • Continue to diversify from media to marketplaces and digital services • Develop marketplaces towards advanced digital platforms • Maximise group synergies through efficient co-operation GROW IN DIGITAL 2. • Diversify and develop new revenue streams in curr
Slide 11: Digital business growth continued for the ninth consecutive quarter
Digital business growth continued for the ninth consecutive quarter SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 77% 69% 57 % 66% 61% 63% 58% 59% 41 % 53% ** 39 % 40 % 51% 46% 16 % 15 % 3% 3% 5% 1% 2% -4 % 75 82 91 100 125 146 160 165 158 212 250 -17 % 2012 2013 2014 2015
Slide 12: Operating Environment
OPERATING ENVIRONMENT
Slide 13: Challenging operating environment
Challenging operating environment Slowing Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Growth decelerates in all Digitalisation continues to Regulatory environment Russian aggression in Ukraine operating countries. High change consumer behaviour. complexe
Slide 14: Ukrainian crisis and our response
Ukrainian crisis • The black swan of FY 2022, Russia’s aggressive invasion to Ukraine, brought severe economic and business consequences: • Significantly higher energy prices and inflation • Lower economic growth in Europe • Increased volatility and insecurity • Disruptions in financial markets and
Slide 15: European Commission financial forecast for Alma's operating countries
European Commission financial forecast for Alma's operating countries Forecasts given on 13 February, 2023 – Unemployment forecasts unchanged from 11 November 2022 GDP change (%) Inflation (%) Unemployment (%) 2022 2023 2022 2023 2022 2023 Croatia 6.3 1.3 10.7 6.5 6.3 6.3 Czechia 2.5 0.1 14.8 9.3 2.
Slide 16: Finnish advertising market
Finnish advertising market MONTHLY CHANGE IN MEDIA ADVERTISING 12/2021–12/2022 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 2022 Source: Kantar TNS (2021)* Source: Kantar TNS A-LEHDET 20% 1% (1%) Other 15% 15% (16%) 10% Keskisuomalainen 5% 2% (2%) ALMA MEDIA 37% (35%) 0% Appr. -5% 235 MEUR -10%
Slide 17: Finnish housing market update
The Finnish housing market update: December sales volumes the lowest in recent history Housing Dec 2022 Etuovi.com Q4 2022 market/sales 2022 Used apartments -50.7% -17.5% Supply/ listings 10.6% -0.5% New apartments -67.3% -46.7% Demand/ searches -22.6% -17.6% Source: KvKL= Real Estate Industry Confe
Slide 18: Finnish mobility update
The Finnish mobility update: Production bottlenecks constrain the industry growth of new vehicles Cars & mobility Dec 2022 Nettiauto Q4 2022 market 2022 New cars Sold cars, total -5% -17% -6% -10% Used cars Gross Market -9% -11% -1% -1% value of sales Source: AKL=Automotive information Centre • AKL:
Slide 19: Solid Financial Position
SOLID FINANCIAL POSITION 16.2.2023 19
Slide 20: Financial position balancing fast and deleveraging ongoing
Financial position balancing fast and deleveraging ongoing NET DEBT (MEUR) AND GEARING (%) Q4/2019–Q4/2022 EQUITY RATIO Q4/2019–Q4/2022 160.0 % 71.0 % 72.7 % 132.0 % 63.1 % 109.2 % 54.1 % 56.0 % 102.4 % 93.7 % 80.8 % 69.3 % 45.8 % 40.5 % 41.6 % 38.8 % 33.3 % 34.7 % 33.0 % MEUR 29.4 % 31.2 % 11.7 % 1
Slide 21: Strong cash flow enables rapid deleveraging
Strong cash flow enables rapid deleveraging Capital expenditure and acquisitions, MEUR OPERATING CASH FLOW 10-12/2022 10–12/2021 2022 2021 Capex 2.9 3.0 13.2 6.1 75.6 79.2 71.1 Acquisitions 2.8 0.0 5.2 241.0 56.0 Total 5.7 3.0 18.3 247.1 MEUR • Cash flow from operating activities was MEUR 17.6 (24.5
Slide 22: EPS picked up to 20 cents in Q4 2022
EPS picked up to 20 cents in Q4 2022 0.28 • Earnings per share were EUR 0.20 (0.14) in Q4 and 0.88 0.18 0.19 0.20 0.20 EUR (0.53) in FY22 0.14 • Earnings per share were improved by the change of EUR 0.12 0.09 4.0 million in the fair value of contingent liabilities (from 0.08 business acquisitions) r
Slide 23: Alma Media's long-term financial targets
Alma Media's long-term financial targets* * https://www.almamedia.fi/en/newsroom/ REVENUE GROWTH (%) ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO** 19.6 2.3 23.8 22.2 12.1 18.7 19.8 19.7 1.6 2.4 0.3 0.0 -0.2 -1.8 -8.0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Slide 24: Outlook for 2023
Outlook For 2023 Announced on 16 February, 2023 • Alma Media expects its full-year revenue and adjusted operating profit of 2023 to remain at the 2022 level or to decrease from 2022 level. • The full-year revenue for 2022 was MEUR 308.8 and the adjusted operating profit was MEUR 73.4. • The outlook
Slide 25: Closing remarks
Closing remarks • Digital transformation has led to a well-balanced and synergistic business mix and to market leadership in chosen areas • The digital journey continues towards advanced platforms • Leveraging the best of current Alma Career products by expanding into new markets: Building one unifi
Slide 26: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Annual General Meeting on Tuesday 4 April 2023 • Interim report for January–March 2023 on Friday, 21 April 2023 • Interim report for January–June 2023 on Wednesday, 19 July 2023 • Interim report for January–September 2023 on Thursda
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