Slide 1: Alma Media Q4 and FY2012
Alma Media Q4 and FY2012 Kai Telanne, President and CEO Juha Nuutinen, CFO February 15, 2013 1
Slide 2: Agenda
Agenda Main points Q4 2012 Dividend proposal Outlook Market development Financial review Q&A 2
Slide 3: Main points Q4 2012
Main points Q4 2012 • The decline of advertising investment and the shift to digital media channels accelerated towards the end of the year in Finland. • Alma Media made a significant acquisition in eastern Central Europe expanding the company’s digital recruitment business. • The added revenue of a
Slide 4: Revenue Q4 2012
Revenue Q4 2012 • Revenue from the quarter grew to 82.7 MEUR. • Advertising sales grew by 3.8 % and was 42.2 (40.6) MEUR. • Digital advertising sales grew by 44.7 % to 16.1 (11.1) MEUR thanks to acquired companies. • Advertising sales of the printed media fell by 11.7 % to 25.8 (29.2) MEUR. • Circul
Slide 5: Revenue 2012
Revenue 2012 • Revenue grew to 320.1 (316.2) MEUR. • Advertising sales grew by 3.5 % and was 160.8 (155.3) MEUR. • Online advertising sales grew by 43.4 % to 61.8 (43.1) MEUR. • The advertising sales of printed papers declined by 12.2 % to 97.7 (111.3) MEUR. • Contents and service revenue grew by 10
Slide 6: Digital sales keep growing
Digital sales keep growing 25 30% 25% 20 20% 15 MEUR 15% 10 21 19 19 18 10% 14 15 15 13 13 13 11 11 5 5% 0 0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Online sales Share of Net Sales 6
Slide 7: Digital business keeps growing
Digital business keeps growing % 30,0 24,3 25,0 20,0 18,0 15,7 15,0 12,9 13,1 10,9 10,0 8,8 5,8 5,0 0,0 2005 2006 2007 2008 2009 2010 2011 2012 Online sales, % of Net Sales 7
Slide 8: Operating profit Q4 2012
Operating profit Q4 2012 • Total expenses grew by 4.2 % to 74.4 (71.4) MEUR due to the cost base of acquired companies, among other things. • Operating profit excl. non- recurring items declined by 15.8 % to 8.5 (10.1) MEUR, 10.3 % of revenue. • Operating profit declined by 7.6 (9.6) MEUR. • Non-rec
Slide 9: Operating profit 2012
Operating profit 2012 • Operating profit excl. non- recurring items was 33.5 MEUR, declining 22.0 % from 2011. • Operating profit declined by 36.9 % to 26.5 (42.0) MEUR. • Non-recurring items of 7.0 MEUR are related to reorganisation of the publishing business and impairment losses in the Marketplac
Slide 10: Dividend
Dividend The proposal by the Board of Directors to the AGM On December 31, 2012, the Group’s parent company had distributable funds totalling EUR 8,014,054 (51,941,032). No essential changes in the company’s financial standing have taken place after the end of the financial year. The Board of Direct
Slide 11: Outlook statement
Outlook statement Feb. 15, 2013 The general uncertainty prevailing in the Group’s principal markets, as well as the shift in media consumption from print media to electronic channels, make it difficult to forecast the development of the advertising and circulation revenues. The share of digital serv
Slide 12: Market development in Finland
Market development in Finland 12
Slide 13: Advertising sales changes Q4/2009 - Q4/2012
Advertising sales changes Q4/2009 - Q4/2012 50 % Change-% 40 % Q4/11 vs. Q4/12 News- 30 % papers -8.8 20 % Magazines -14.0 10 % Television -3.4 0% Radio -7.1 -10 % Internet +13.9 Yhteensä -5.3 -20 % Advertising sales total, chg % Newspaper advertising, chg % Internet advertising, chg % Source: TNS M
Slide 14: Advertising sales in printed newspapers declined further
Advertising sales in printed newspapers* declined further YTD change from previous year, % 12 % 10 % 8% 6% 4% 2% 0% -2 % -4 % -6 % -8 % -10 % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 2012 Source: TNS Media Intelligence * Newspapers, local and free issue papers 14
Slide 15: Advertising in digital media continued to grow
Advertising in digital media continued to grow YTD change from previous year, % 40 % 35 % 30 % 25 % 20 % 15 % 10 % 5% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct No v Dec 2011 2012 Source: TNS Media Intelligence 15
Slide 16: Advertising declined across branches
Advertising declined across branches Total market; change from Q4/2011 Advertising in Q4/12 MEUR Retail -4,2 % Retail 76 Motor v. -18,0 % Motor vehicles 22 Food & bev. -5,7 % Food & beverages 20 Houses 1,7 % Houses and premises 12 Entert 8,3 % Entertainment 12 Tourism -7,4 % Tourism and traffic 10 R
Slide 17: The decline continued for three quarters
The decline continued for three quarters Total market; change from previous year Q2 2012 vs 2011 Q3 2012 vs 2011 Q4 2012 vs 2011 Retail -4,2 % Retail -3,9 % Retail -4,2 % Mo tor v. -6,7 % Mo tor v. -9,1 % Moto r v. -18,0 % Foo d & bev. -2,4 % Fo od & bev. -8,4 % Food & bev. -5,7 % Houses 0,6 % Ho us
Slide 18: Steep decline for print ads since Q2 2012
Steep decline for print ads since Q2 2012 Newspapers total*; change from previous year Q2 2012 vs 2011 Q3 2012 vs 2011 Q4 2012 vs 2011 Retail -7,6 % Retail -9,1 % Retail -10,2 % Motor v. -10,9 % Motor v. -8,9 % Motor v. -18,6 % Houses 7,3 % Houses 6,4 % Houses 2,9 % Recru -22,3 % Recru -21,3 % Recru
Slide 19: Financial review
Financial review Juha Nuutinen, CFO 19
Slide 20: Revenue grew, operating profit declined
Revenue grew, operating profit declined Revenue, MEUR Operating profit, MEUR IFRS IFRS 20
Slide 21: Advertising sales grew due to acquisitions
Advertising sales grew due to acquisitions IFRS Circulation sales, MEUR Advertising sales, MEUR 21
Slide 22: Newspapers Q4 2012
Newspapers Q4 2012 • Revenue declined by 5.8 % to 52.6 Revenue and operating profit MEUR MEUR & % • Advertising sales declined by 4.0 % to excl. non-recurring items -6,8% -5,8% 26.1 (27.1) MEUR. 65,0 30 % • Digital advertising sales grew by 14.5 55,0 % and Iltalehti.fi strenghtened its 55,8 25 % pos
Slide 23: Newspapers full year 2012
Newspapers full year 2012 • Revenue declined by 5.4 % to 206.6 Operating profit, MEUR (218.3) MEUR. IFRS • Total expenses excl. non-recurring items were 181.1 (187.7) MEUR. • Operating profit excl. non-recurring items were 25.6 (30.7) MEUR, 12.4 % (14.1 %) of revenues. • The organisational change of
Slide 24: Kauppalehti Group Q4
Kauppalehti Group Q4 • Revenue grew by 1.9 % 15.5 MEUR Revenue and operating profit, • The share of digital sales of total MEUR & % excl. non-recurring items revenue was 26.4 %. 17,0 +1,0% +1,9% 30 % • Kauppalehti advertising sales declined by 13.1 % to 4.5 (5.1) MEUR. 15,0 15,2 15,5 25 % • Digital
Slide 25: Kauppalehti Group full year 2012
Kauppalehti Group full year 2012 • Revenue at the level of previous Operating profit, MEUR year 56.9 (56.7) MEUR. IFRS • Total expenses excl. non-recurring items were at 51.3 (49.3) MEUR. • Operating profit excl. non-recurring items was 5.7 (7.4) MEUR, 10.1 % (13.0 %) of revenue. • The renewal of th
Slide 26: Digital Consumer Services Q4
Digital Consumer Services Q4 • Revenue grew to 14.5 MEUR. Revenue and operating profit, • Source for growth were the acquired MEUR & % businesses the sales of which were 5.2 MEUR during the quarter. excl. non-recurring items +28,9% +37,7% • Revenue of the recruitment business 16,0 30 % continued to
Slide 27: Digital Consumer Services full year 2012
Digital Consumer Services full year 2012 • Revenue grew to 56.5 MEUR Operating profit, IFRS • Revenues from the businesses MEUR acquired 2012 were 20.8 MEUR. • Total expenses excl. non-recurring items were at 49.3 (35.9) MEUR. • The expenses from the acquired businesses were 18.0 MEUR. • Operating p
Slide 28: Other Operations Q4
Other Operations Q4 • Revenue was 21.5 MEUR of which Revenue and operating profit, external revenue was 1.7 (1.5) MEUR. MEUR excl. non-recurring items • Total expenses excl. non-recurring +5,8% +6,8% 25,0 items were 23.6 (21.7) MEUR. • The costs from preparing the new 20,0 21,2 21,5 printing facilit
Slide 29: Other Operations full year 2012
Other Operations full year 2012 • The renewal investment of the Operating profit, MEUR Tampere printing facility has IFRS proceeded according to plans. The financing liabilities of the investment will be visible in the balance sheet of Alma Media from the beginning of 2013. • Alma Manu widened its d
Slide 30: Cash flow from operating activities
Cash flow from operating activities IFRS 30
Slide 31: Cash flow and investments
Cash flow and investments IFRS 31
Slide 32: Net debt
Net debt IFRS , ] : 0,0 0 : ma || LJ ~ 32,3 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 32 LIVING INFORMATION
Slide 33: Key ratios
Key ratios IFRS Equity ratio, % Gearing, % 33
Slide 34: Key ratios
Key ratios IFRS ROE, % ROI, % 14 12 12 12,5 10 9,9 10 10,5 8 7,8 8 6 6 4 4 2 2 0 0 Q4 2011 Q4 2012 Q4 2011 Q4 2012 34
Slide 35: EPS and shareholders’ equity per share
EPS and shareholders’ equity per share IFRS 35
Slide 36: Balance Sheet
Balance Sheet 36 IFRS MEUR Q4 2012 Intangibles and goodwill 118,2 40,5 Tangibles 41,3 23,0 Associated companies 31,3 35,0 Inventory 0,7 1,0 Receivables 36,4 40,6 Cash 17,1 57,8 Assets 245,1 198,0 Equity 84,5 96,7 Reserves-obligatory 0,5 1,2 Pension liabilities 2,4 2,6 Ib debt 79,4 25,5 Non-lb debt 6
Slide 37: Profit and Loss
Profit and Loss MEUR 2012 2011 Change 2012 2011 Change Q4 Q4 % Q1-Q4 Q1-Q4 % Revenue 82,7 81,3 1,7 320,1 316,2 1,2 Total expenses excluding non- 74,4 71,4 4,2 287,0 273,6 4,9 Ebitda excluding non-recurring 10,6 12,3 -13,6 45,1 51,9 -13,1 Operating profit excluding non- 8,5 10,1 -15,8 33,5 42,9 -22,0
Slide 38: Thank You!
Thank You! Coming events for investors: - Annual General Meeting 14 March 2013 - Q1 2013 results 26 April 2013 38