Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q1 2021 Earnings Presentation
24 slides from Alma Media Oyj's earnings presentation, Jun 1, 2021
Slide 1: Q1 2021: A Positive Start For The Year
Q1 2021: A Positive Start For The Year CEO Kai Telanne and CFO Juha Nuutinen
Slide 2: Solid Performance in Q1, Better Than Expected
Solid Performance in Q1, Better Than Expected • Despite COVID-19 and continued uncertainty in • Significant, strategic transactions during the last two the operating environment, a good start for the quarters. year as rebound continues. • Increased leverage – net debt to change significantly, • Rela
Slide 3: Revenue Impacted By The Decline In Recruitment, And Weak Development Of Print Media
Revenue Impacted By The Decline In Recruitment, And Weak Development Of Print Media Content And Advertising Sales Revenue* Q1 2021 (MEUR) Adjusted operating profit* Q1 2021 (MEUR) Q1: 0.7 -0.9 Q1: -2.2 -1.1 -1.5 1.5 -1.1 % -0.4 -6.1 % 61.9 58.1 11.2 11.1 Q1 2020 Alma Alma Alma Q1 2021 Q1 2020 Alma A
Slide 4: Digital Business Recovery Continues
Digital Business Recovery Continues Share of digital business of Group revenue* Digital business growth* 20 % 74% 69% 15 66% 12 % 12 % 63% 61% 59% 58% 10 8% * 6% 53% 51% 4% 4% 3% 46% 5 3% 3% 1% 2% 36% 0 -5 -4 % -10 -15 54 75 82 91 100 125 146 160 165 158 43 -17 % -20 2011 2012 2013 2014 2015 2016 20
Slide 5: Development By Business Segments
Development By Business Segments 5
Slide 6: Alma Career: Revenue And Profit Under Pressure Due To COVID-19
Alma Career: Revenue And Profit Under Pressure Due To COVID-19 And Delay In Revenue Recognition As Expected • Revenue -12.1 % to MEUR 16.2. Revenue (MEUR) and adjusted Share of segment revenue by country • Due to revenue recognition, the operating margin (%) (revenue change rates in brackets) sharp
Slide 7: Alma Talent: Performance Strong Across The Board
Alma Talent: Performance Strong Across The Board • Revenue -4.5 % to MEUR 24.5. Revenue (MEUR) and adjusted Revenue split by business unit Revenue of continuing operations operating margin (%) (revenue change rates in brackets) +6%, excluding divested Swedish 0% 20% 40% 60% 80% 100% media businesses
Slide 8: Alma Consumer: Growth Driven By Marketplaces, A Sluggish Start For Print Media
Alma Consumer: Growth Driven By Marketplaces, A Sluggish Start For Print Media • Revenue -2,3% to MEUR 17.5. Revenue (MEUR) and adjusted Revenue split by vertical operating margin (%) (revenue change rates in brackets) • In marketplaces e.g., housing and 27.5 % 0% 20% 40% 60% 80% 100% comparison ser
Slide 9: Financial Position
Financial Position 9
Slide 10: Increased Leverage – Net Debt to Change Significantly
Increased Leverage – Net Debt to Change Significantly INTEREST-BEARING NET DEBT, MEUR 3/2021 12/2020 IFRS16 -leasing liabilities 36.7 38.9 Loans from financial institutions 50.0 Commercial papers 5.0 Cash and cash equivalents 52.3 48.0 Interest-bearing net debt 39.4 -9.1 Net debt (MEUR) and gearing
Slide 11: Cash Flow
Cash Flow • Cash flow from operating activities was MEUR 15.4 (26.9). Operating cash flow and capital expenditure Decrease came from divested business units, higher paid income taxes and lower EBITDA from continued 80 operations. 70 • Cash flow from investment activities was MEUR -63.6 60 (-4.8) due
Slide 12: Revenue & Invoicing Recognition In LMC
Revenue & Invoicing Recognition In LMC 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 2019 2020 2021 Revenue Invoicing 12
Slide 13: EPS
EPS • Earnings per share from 0.14 Continuing operations were EUR 0.09 (EUR 0.10). Adjusted items 0.12 MEUR -0.3 (MEUR 1.0). 0.10 • Redemption of minority shares 0.08 EUR in Alma Career will increase EPS starting from Q2. 0.06 0.04 0.02 0.09 0.09 0.12 0.11 0.10 0.04 0.12 0.08 0.09 0.00 Q1 19 Q2 19 Q
Slide 14: Long-Term Financial Targets
Long-Term Financial Targets* Financial target Long-term target level Performance Q1/2021 Digital business growth, %* >12% 3% ROI, %** >17% 15% Dividend payout ratio >50% * Includes continued and discontinued operations ** Includes adjusted items such as capital gain on the sale of the regional news
Slide 15: Operating Environment
Operating Environment 15
Slide 16: European Commission: Challenging Times Ahead, But Light At The End Of The Tunnel
European Commission: Challenging Times Ahead, But Light At The End Of The Tunnel GDP forecasts in Alma’s operating countries 2020–2022E Finland Czech Republic Slovakia Croatia Estonia 5.00% 5.40% 5.30% 4.60% 4.00% 3.80% 2.80% 3.20% 2.60% 2.00% -3.10% -2.90% -5.70% -5.90% -8.90% Latvia Lithuania Swed
Slide 17: Finnish Advertising Market: Overall In Negative Territory, Digital Advertising Positive
Finnish Advertising Market: Overall In Negative Territory, Digital Advertising Positive Monthly change in media advertising 2/2020–2/2021 Online advertising by media companies in Finland Source: Kantar TNS 1-2/2021 (1-2/2020)* Source: Kantar TNS 20% A-Lehdet 10% 1 % (1%) Other 18% (7%) 0% Alma Media
Slide 18: Strategy And Outlook
Strategy And Outlook 18
Slide 19: Alma Media Transformational Strategy
Alma Media Transformational Strategy • Accelerate the digitalization of print media TRANSFORM THE CORE • Activate co-operation within group and business units • Divest or discontinue unprofitable / low-profitable businesses • Diversify from media to marketplaces and digital services • Concentrate on
Slide 20: Transactions In Q1
Transactions In Q1 Alma Media acquired Alma Media acquired 60% Alma Career Oy acquired a remaining shares 16.7% in of Netello Systems Oy, a Czech start-up Quantiq s.r.o. Alma Career Oy. company that provides The company’s SaaS-based digital marketing solutions recruitment service especially to SMEs.
Slide 21: Alma Media Strengthens Its Position In Digital Marketplaces In Finland
Alma Media Strengthens Its Position In Digital Marketplaces In Finland • On March 5 2021, Alma Media signed an • Digitalisation of mobility services and the agreement to acquire Nettix business from automotive ecosystem is expected to accelerate Otava. The agreed enterprise value of the acquired fur
Slide 22: Alma Consumer: A Strong Local Partner With A Unique Combination Of Digital Content & Commerce
Alma Consumer: A Strong Local Partner With A Unique Combination Of Digital Content & Commerce #1 in households’ pivotal investments Reaches every Finnish household 1 250 000 ** registered users Market leader in housing marketplaces Market Leader in motor vehicles marketplaces Revenue Adj. Operating
Slide 23: Outlook For 2021
Outlook For 2021 • The uncertainty in Alma Media’s operating Assumptions behind the outlook environment is continuing due to the COVID-19 • The Nettix acquisition. pandemic in 2021. • In recruitment business the delay between invoicing and the • Alma Media expects its full-year revenue and recogniti
Slide 24: Thank you! Questions?
Thank you! Questions? Upcoming events in the investor calendar: • H1 2021, 21 July 2021 • Q3 2021, 21 October 2021 24