Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Shareholder Meeting (2023)
29 slides from Sanoma Oyj's shareholder meeting presentation, 2023
Slide 1: 2022: Continued growth in a challenging economic environment
Pictures to be changed 2022: Continued growth in a challenging economic environment AGM 2023 Susan Duinhoven, President and CEO
Slide 2: We have an ambitious strategy for sustainable, profitable growth
We have an ambitious strategy for sustainable, profitable growth… We are one of the global leaders in K12 education serving 25 million students ▪ Producing inclusive learning materials and platforms to promote equal learning opportunities Our purpose ▪ Strengthening our #1 position in European K12 l
Slide 3: Built on a well-balanced portfolio: year 2022 at a glance
…built on a well-balanced portfolio Year 2022 at a glance Net sales More than Free cash flow 1,298m€ 85% 112m€ 53% 47% of users pay for Learning Media digital services Finland Operational EBIT excl.PPA Operating in More than 189m€ Margin 14.6% 12 5,600 73% 27% European countries employees Learning M
Slide 4: We strengthened our position as a global K12 education leader
1 We strengthened our position as one of the global leaders in K12 education ▪ The acquired Italian and German business had a positive earnings and cash flow contribution − Increased Learning’s share of Group’s net sales to 53% and of operational EBIT excl. PPA to 73% ▪ In Spain, solid net sales gro
Slide 5: Sanoma entered Italy with the acquisition of Pearson's K12 business
Sanoma entered Italy with the acquisition of Pearson’s local K12 learning business Key market factors in 2022 ▪ Italy is one of the largest K12 learning services markets in Europe – Sanoma is the 3rd largest educational publisher with a 7.0m 2.8% market share of 15% K12 student Public spend on K12 p
Slide 6: In Spain, educational reform and curriculum renewal increased demand
In Spain, major educational reform and curriculum renewal increased demand Key market factors Spain in 2022 ▪ With Santillana acquired end of 2020, we are the leader in Spain’s fragmented K12 learning content market ▪ The integration was successfully finalised during 2022 6.2m 2.7% K12 student Publi
Slide 7: In Learning, we have built strong digital competencies
In Learning, we have built strong digital competencies that we can leverage across the business ▪ Digitalisation within education is accelerating and 85% offers better scalability and opportunities for of customers market consolidation pay for a digital ▪ Our best-in-class digital platforms and expe
Slide 8: We continued our successful digitalisation in Media Finland
2 We continued our successful digitalisation in Media Finland 60% 1.4m pay for a subscriptions digital in total component ▪ Solid on average ≈ 5% growth in the digitally active subscriptions of both Helsingin Sanomat and regional news media ▪ Growing net sales and paying subscriber base of SVOD serv
Slide 9: Case Ilta-Sanomat: stable net sales driven by digital advertising
CASE ILTA-SANOMAT Stable net sales driven by 188m 46m digital advertising page views site visits a week 3m a week readers ▪ Digitalisation has increased the reach significantly a week – IS reaches the whole of Finland and often audiences Net sales split print vs. digital who don’t currently subscrib
Slide 10: Improved sustainability performance reflected in higher ESG ratings
3 Improved sustainability performance and reporting reflected in higher ESG ratings… ▪ Further improvement in key ESG ratings, especially ISS ESG rating to Prime C+ and the leading global climate rating CDP to the leadership level score of A- ▪ As a result of the improved ISS ESG rating, inclusion i
Slide 11: Sustainability Strategy emphasising the positive impact of learning and media
…with our Sustainability Strategy emphasising the positive impact of learning and media on society Trustworthy data Valued people Target: Continuous Target: Employee privacy and security Engagement Index (EEI) training for our above 7.5 employees No Inclusive learning major data Empowering learning
Slide 12: Annual European Teacher survey on learning materials
Our Ourannual annualEuropean EuropeanTeacher Teachersurvey surveycontinues shows showsour ourto show learning that our materials learninglearning materials materialssupport supportthe support theteachers teachers and teachers save Data points to be time chosen Data points to be chosen and confirmed,
Slide 13: Increasing awareness of sustainability issues with independent journalism
Increasing awareness of global and local sustainability issues with fact-based and independent journalism Kids news 2022 was the first year Promoting media for HS Environment 1,500 literacy among tens of thousands articles of young readers in schools and at 62m home article views Two years in August
Slide 14: Passionate, diverse and dedicated people are key to our success
Passionate, diverse and Personnel by country % at the end of 2022 dedicated people are key to 3% 3% 6% Media Finland 44% our success Finland The Netherlands 13% Poland Total ▪ We employ more than 5,600 people in 12 5,611 50% Spain countries 13% Belgium Italy ▪ Hybrid work has become the new normal a
Slide 15: Responsible business practices are part of our sustainability priorities
Responsible business practices are part of our sustainability priorities ▪ Sanoma Code of Conduct outlines our shared ethical standards for employees and business partners – All employees are required to apply the Code in full in their day-to-day conduct and business decisions – 98% (2021: 97) of em
Slide 16: We support Ukraine – indirect impacts of the war increased our costs
We support Ukraine – indirect impacts of the war have increased our costs ▪ We are shocked and appalled by the unprovoked Russian invasion of the Ukraine and we stand with the people of Ukraine ▪ We have supported the relief work in Ukraine with several initiatives ▪ News media plays a central role
Slide 17: Financial overview 2022 and Outlook 2023
Financial overview 2022 and Outlook 2023
Slide 18: Net sales continued to grow while EBIT was affected by inflation
FY 2022 Net sales continued to grow while EBIT was affected by inflation Net sales Operational EBIT Reported EBIT Result for the Operational EPS Reported EPS excl. PPA period 1,298m€ 189m€ 112m€ 77m€ 0.65€ 0.47€ (2021: 1,252) (2021: 197) (2021: 142) (2021: 101*) (2021: 0.69) (2021: 0.62) ▪ Growth in
Slide 19: Learning: net sales grew while earnings were stable
LEARNING FY 2022 Net sales and operational EBIT excl. PPA m€ Net sales grew while earnings were stable ▪ Net sales grew to 681m€ (2021: 637) 800 25% – The acquired Italian and German business made a 37m€ 700 20% contribution to the net sales growth for September−December 600 – In Learning, organic g
Slide 20: Media Finland: net sales stable, earnings impacted by lower advertising
MEDIA FINLAND FY 2022 Net sales and operational EBIT excl. PPA m€ Net sales remained stable, earnings impacted by lower advertising sales and higher costs 700 20% ▪ Net sales amounted to 618m€ (2021: 615) 15% 600 – Total advertising sales declined despite growing digital 10% and radio advertising sa
Slide 21: Net debt and leverage increased with the acquisition in Italy and Germany
Net debt and leverage Net debt m€ increased with the acquisition in Italy and Germany Long-term 3.1 3.2 3.3 3.2 target < 3.0 2.8 ▪ Net debt / Adj. EBITDA was 3.2 (2021: 2.4), 2.6 2.6 above the long-term target of <3.0 2.5 2.4 ▪ Interest-bearing net debt totalled 823m€ (2021: 616) ▪ Equity ratio was
Slide 22: Free cash flow was lower in 2022
Free cash flow was lower Free cash flow m€ in 2022 ▪ Free cash flow amounted to 112m€ 200 – Significantly lower from the underlying business 150 due to major investments made – Large positive contribution from the working 100 capital of the Italian business due to timing ▪ In 2023, underlying FCF ex
Slide 23: The Board proposes a reduced dividend of 0.37€
The Board proposes a Dividend per share € Yield Total reduced dividend of 0.37€ dividend approx. 3.8% at the end of 60m€ 2022 ▪ The Board proposes a dividend of 0.37€ (2021: 0.54) per share to be paid for 2022 ▪ The proposal balances the capital use between dividend 93% and continuing growth investm
Slide 24: In 2023, we continue building the long-term strengths of our businesses
In 2023, we continue building the long-term strengths of our businesses Expected 2023 Long-term targets Learning financial impact for SBUs unchanged ▪ Organic growth driven by the continued implementation of the new curriculum ▪ Organic growth in Spain and Poland returning to growth with the next re
Slide 25: Outlook for 2023
Outlook for 2023 ▪ In 2023, Sanoma expects that the Group’s reported net sales will be 1.35‒1.4bn€ (2022: 1.3) ▪ The Group’s operational EBIT excluding PPA is expected to be 150‒180m€ (2022: 189) ▪ Regarding the operating environment Sanoma expects that: – The economies in the Group’s operating coun
Slide 26: We issued a 150m€ hybrid bond in March 2023
We issued a 150m€ hybrid bond in March 2023 ▪ The bond was seen as the best way to strengthen the balance sheet to – Increase our financial flexibility – Support the execution of our strategic plan at all times during the year ▪ The growing learning business follows the cycle of a school year – Incr
Slide 27: Our long-term targets are unchanged
Our long-term targets are unchanged (FY 2022 in brackets) Net debt / Equity Increasing Adj. EBITDA ratio dividend < 3.0 35−45% 40−60% (3.2) (35.8%) of free cash flow (93%1)) Annual emission Employee Experience Management reductions of Index gender balance −4.2% ≥7.5 50/50 in line with SBTi by 2030 b
Slide 28: We have an ambitious strategy for sustainable, profitable growth
We have an ambitious strategy for sustainable, profitable growth ▪ We are one of the global leaders in K12 Our purpose education serving 25 million students and Through learning and want to grow through M&A media, we have a positive impact on the lives of millions of people ▪ We are Finland’s #1 cro
Slide 29: Thank You!
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