Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Shareholder Meeting (March 2013)
31 slides from Alma Media Oyj's shareholder meeting presentation, Mar 14, 2013
Slide 1: Alma Media Corporation Annual General Meeting
Alma Media Corporation Annual General Meeting Review by the President & CEO March 14, 2013
Slide 2: Contents of the review
Contents Contents ofofthe the review review Contents of the review • • • Alma AlmaMedia Mediatoday today Alma Media today Theadvertising • • • The advertisingmarket market2012 2012 • The advertising Strategic actionsmarket 2012 2012 • • • Strategic Financialactions result 2012 2012 Strategic actions
Slide 3: Alma Media today
Sn Alma Media today
Slide 4: Alma Media is a dynamic media company focusing on digital services and publishing
NORDICS BALTICS CENTRAL EUROPE Alma Media is a dynamic media company focusing on digital services and publishing. 01. NEWS 02. LIFESTYLE 03. CAREER 04. BUSINESS 4 5.7 .2015
Slide 5: Operating profit, revenue and employees 2012
OPERATING PROFIT MEUR 33.5 REVENUE ALMA EMPLOYEES approximately 2012 MEUR 1,950 320 (excluding newspaper deliverers) 5 5.7 .2015
Slide 6: Alma Media goes international
Alma Media goes international 01. Recruitment services in the Baltic countries, Czech Republic, Slovakia and Croatia. 02. News agency and home marketplace in the Baltic countries. 03. Commercial premises marketplace in Sweden. 04. Marketplace for used heavy machinery in 35 countries. Outside Finland
Slide 7: Reporting segments
DIGITAL CONSUMER SERVICES MEUR 56.5 Other NEWSPAPERS KAUPPALEHTI GROUP Digital MEUR Consumer Services Kauppalehti Group MEUR 206.6 Newspapers 56.9 REPORTING SEGMENTS 7 5.7 .2015
Slide 8: Newspapers
NEWSPAPERS 6% Iltalehti Alma Regional Media 12.4% Share of Operating margin digital revenue Revenue 2012 (2011): excluding in segment’s non-recurring total revenue MEUR 206.6 items (218.3) 8 5.7 .2015
Slide 9: Kauppalehti Group
KAUPPALEHTI GROUP BNS 26% Alma360 Kauppalehti 10.1% Kauppalehti Information Share of Services Operating margin digital revenue Revenue 2012 (2011): excluding in segment’s non-recurring total revenue MEUR 56.9 items (56.7) 9 5.7 .2015
Slide 10: Digital Consumer Services
DIGITAL CONSUMER SERVICES Alma 100% Diverso 13.1% Share of Marketplaces Operating margin digital revenue excluding Revenue non-recurring in segment’s 2012 (2011): items total revenue MEUR 56.5 (42.1) 10 5.7 .2015
Slide 11: The advertising market 2012
The advertising market 2012
Slide 12: Cyclical changes affect advertising volume
Cyclical changes affect advertising volume 15% 10% 5% 0% -5% -10% -15% -20% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Annual GDP change Annual advertising volume change Sources: Statistics Finland, Finnish Advertising Council,
Slide 13: Only online advertising grew in 2012
Only online advertising grew in 2012 Change % Q4/2011 vs. Q4/2012 Newspapers -8.8 Magazines -14.0 Television -3.4 Radio -7.1 Online +13.9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total change -5.3 Newspapers Online adv ertising 13 1 1 /5/12 Nordea Media Seminar
Slide 14: Strategic actions 2012
LIVING INFORMATION AL MA
Slide 15: International acquisitions
International acquisitions 60 Revenue from Liikevaihto Suomen 50 outside Finland ulkopuolella 40 Growth of digital 30 business accelerated through international 20 acquisitions in 2012. 10 0 CV Online Investment in 2009 2010 2011 2012 LMC acquisitions totalled EUR 72 million. Profesia Average EBITDA
Slide 16: Strong in recruitment
Strong in recruitment NUMBER ONE IN 50% market share FINLAND AND ESTONIA Largest market actor LATVIA in all countries of LITHUANIA 40–70% operation. CZECHIA SLOVAKIA CROATIA Synergies between countries: 75% - Product development 95% - Product offering - Competence 80% exchange - Customer relations -
Slide 17: Acquisitions accelerate digital growth
Acquisitions accelerate digital growth Profesia Tau-online LMC E-Kontakti CV Online 24% Telkku Kotikokki 6% Alma Media’s most significant digital business acquisitions and share of digital revenue in consolidated revenue. 2005 2006 2007 2008 2009 2010 2011 2012 17 1 1 /5/12 Nordea Media Seminar
Slide 18: Digital content through subscription
Digital content through subscription Kauppalehti overhauled the content of its print version in May 2012. At the same time, the content was separated from the digital offering. Kauppalehti.fi was the first to introduce a paywall in Finland. Paywalls will become more common in Alma’s media in 2013.
Slide 19: Efficient operating model for Regional Media
Efficient operating model for Regional Regional paper Media Nationwide joint Subscription-based editorial desks local paper produce, for example: - Sports news - Foreign news - Political news Cooperating with: Ilkka - Utility content Pohjalainen Local editorial offices genuinely focus on content.
Slide 20: The world's best printing press
The world’s best printing press Replacement investment in Tampere printing facility is being commissioned. Production will start in April. The new press is capable of printing three newspapers simultaneously. The new printing facility in Tampere operates 50% more efficiently than the old one, being
Slide 21: Financial result 2012
Financial result 2012
Slide 22: Revenue and operating profit 2011–2012
Revenue and operating profit 2011–2012 Revenue MEUR Operating profit MEUR Non-recurring items
Slide 23: Cash flow remained good
Cash flow remained good 30,0 25,0 20,0 Cash flow remained 15,0 at normal average level. MEUR 10,0 5,0 VAT increase for print 12,3 20,3 newspapers at end of 11,3 0,0 2011 brought in -5,0 advance payments. -10,0 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Veronpalautus ja ennakon
Slide 24: Investment phase reflected in increased net debt
Investment phase reflected in increased net debt Acquisitions of digital businesses increased gearing to 73.7% and decreased equity ratio to 36.7%. 24 1 1 /5/12 Nordea Media Seminar
Slide 25: Balance sheet liabilities increase through new printing press
Balance sheet liabilities increase through new printing press MEUR Q42012 Q42011 Intangible assets 118.2 40.5 Tangible assets 41.3 23.0 Share of associated 31.3 35.0 companies Current assets 0.7 1.0 Receivables 36.4 40.6 Cash 17.1 57.8 Assets 245.1 198.0 Equity 84.5 96.7 Compulsory provisions 0.5 1.
Slide 26: Dividend history 2005–2012
Dividend history 2005–2012 Dividend1 and effective dividend yield 2005-2011 2005 2006 2007 2008 2009 2010 2011 2012 Proposed Dividend1, EUR 0.65 0.65 0.90 0.30 0.40 0.70 0.40 0.10 distribution of Effective 7.0 % 7.7 % 6.1 % 5.3 % 5.3 % 8.5 % 6.5 % 2.2 % profit for 2012 dividend yield EUR 0.10 per sh
Slide 27: Alma Media's year 2013 and ahead
Alma Media’s year 2013 and ahead 27 1 1 /5/12 Nordea Media Seminar
Slide 28: Significant changes in business structure
Significant changes in business structure Source of revenue Share of revenue Change in revenue 2012 2011–2012 Advertising 50% + 4% Effects on change: • Print 30% - 12% • Digital 19% + 43% • economic cycle • shift of advertising Circulation 37% - 6% and media consumption from print to digital channel
Slide 29: Accelerating growth of digital media
Accelerating growth of digital media MEUR 30 90 Share of print media % 80 in Alma Media 25 70 revenue now 68%, but declining. 20 60 50 Digital services and 15 online advertising 78 40 have a significant, 10 30 rapidly growing share 57 49 in Alma Media’s 44 40 20 36 revenue and financial 5 27 10 resu
Slide 30: Strategy implementation 2013
Strategy implementation 2013 DIGITAL AGILE NEW LIFE GROWTH GROUP FOR PRINT Strategic flexibility. Ensuring cash flow Growing service businesses. from multi-media Leadership competence. Integrating businesses publishing. Understanding of outside Finland. Exploiting new digital business. Data systems.
Slide 31: Thank you!
Thank you!