Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Day (October 2009)
12 slides from Sanoma Oyj's investor day presentation, Oct 12, 2009
Slide 1: Solid Financial Position – Improving Efficiency
Solid Financial Position – Improving Efficiency Kim Ignatius CFO, Sanoma Group Sanoma Capital Markets Day 12 October 2009
Slide 2: Solid financial performance – improving efficiency
Solid financial performance – improving efficiency • Cost reductions • Reshaping operations to improve efficiency in longer term • Exit loss-making units and operations • Significantly lower interest expenses • Tax management • Focus on managing net working capital • Focus on capital expenditure Tar
Slide 3: Cost reductions & efficiency improvements
Cost reductions & efficiency improvements Operating expenses decreased by over 5% in 1H09 1H09 1H08 Net sales EUR 1,333.2 million Net sales EUR 1,452.8 million Operating expenses EUR 1,189.8 million Operating expenses EUR 1,265.1 million 12.1 87.2 67.5 14.6 85.5 77.4 41.3 41.9 41.1 38.6 75.4 91.9 52
Slide 4: Cost reductions & efficiency improvements
Cost reductions & efficiency improvements Operating expenses • Cost of goods sold adjusting well to changes in net sales • Immediate savings from lower marketing expenditure • At the end of June, FTE’s lowered by 1,144 from year-end 2008 and by 1,021 compared to June 2008 – impact getting more visib
Slide 5: Net working capital
Net working capital EUR million 500 400 6% 300 4% 200 2% 100 0 0% -100 -2% -200 -4% -300 -400 -6% -500 -8% -600 -10% -700 -800 -12% Jan08 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan09 Feb Mar Apr May Jun Total current receivables Inventories Total current liabilities NET WORKING CAPITAL NWC/NS •
Slide 6: Capital expenditure
Capital expenditure • Group target to keep annual EUR million 60 capex level below EUR 100 million 50 • In 2009, the Group is aiming at clearly lower levels 40 • Capex consists mainly of 30 maintenance and developing operational ICT 1H09 1H08 20 10 0 Sanoma TOTAL Magazines News Entertainment Learnin
Slide 7: Capital structure
Capital structure Net debt development Acquisitions EUR million Capex & Disposals Net debt 1200 Dividends 41.8 17.3 1,161.0 Net debt Acquisitions 145.8 1,058.4 & disposals Net debt Other Capex 77.3 971.6 8.1 1000 63.4 Other Cash flow 14.4 800 from Cash flow operations from 7.5 operations 600 213.1 4
Slide 8: Capital structure
© Disney Capital structure Equity development EUR million Profit for Profit for Equity the period* the period 1400 Equity 1,297.1 1.1 51.6 1,237.1 Equity Acquisition 1200 1,127.6 of treasury Other shares Translation Dividends Other 1000 -1.1 -145.8 Translation -6.4 differencies -0.7 differencies -53
Slide 9: Reshaping operations and exiting loss-making businesses and units
Reshaping Exiting loss-making operations businesses and units • Sanoma News • Discontinuing some 30 magazines • Sanoma Magazines Belgium • Closing down some 120 kiosks • Sanoma Uitgevers • Dutch marketing organisation (Felicitas) • Estonian retail operations • Multi-volume books • Language services
Slide 10: Dividend over the years
Dividend over the years EUR 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2004 2005 2006 2007 2008 Dividend/share Earnings/share Cash flow from operations/share • EPS in 2008 impacted by impairment • Cash flow from operations very stable over the years • Dividend payout impacted by both earnings/share and
Slide 11: Conclusions
Conclusions • Internal focus continues to be in safeguarding profitability and stable cash flows; also in 2010 • Keeping a solid capital structure is a must – Strengthening profits and cash flow will provide additional financial flexibility, allowing us to invest in growth areas • Dividend policy to
Slide 12: Inspires, Informs, Connects
Inspires, Informs, Connects