Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Presentation (December 2015)
50 slides from Sanoma Oyj's investor presentation, December 2015
Slide 1: Sanoma Corporate Presentation
Sanoma Corporate Presentation December 2015
Slide 2: Agenda
1. Sanoma in brief 2. Sanoma’s strategy 3. Q3 2015 Interim Report 4. Appendix 2 December 2015
Slide 3: Sanoma in a Nutshell
Sanoma in a Nutshell 2014 figures 1,902 118.8 EBIT excluding non- Net sales, EUR million recurring items, EUR million 7,583 FTEs
Slide 4: Strong Brands, Great Content, Loyal Customers and Consumers
Strong Brands, Great Content, Loyal Customers and Consumers 4 December 2015
Slide 5: Market Leader in Consumer Media
Market Leader in Consumer Media Finland Netherlands Sanoma Sanoma Yle De Persgroep NL Alma Media Telegraaf Media MTV #1 Wegener #1 TS-Yhtymä RTL NL Keskisuomalainen Audax Otavamedia STER EUR million 0 200 400 600 800 EUR million 0 200 400 600 800 #1 in newspapers #1 in consumer magazines #1 in magaz
Slide 6: Market Leader in Learning
Market Leader in Learning Finland Sweden Netherlands Market position: Market position: Market position: #1 #2 #2 Net sales: Net sales: Net sales: ~ EUR 50 million ~ EUR 25 million ~ EUR 100 million Belgium Poland Global market Market position: Market position: Market position: a #1 #1 leading player
Slide 7: Sanoma – The Big Picture
Sanoma – The Big Picture Media Finland Media BeNe Learning Turnaround Domain approach Digital ahead gaining momentum transformation proceeding well TV & radio • FTA profitability at good level Net sales* Net sales* Net sales* • VOD offering to be widened EUR 590 million EUR 840 million EUR 290 milli
Slide 8: CEO’s First Impressions of Sanoma
CEO’s First Impressions of Sanoma New CEO Susan Duinhoven started 1 October 2015 Sanoma’s strengths: Dedicated people Strong local brands Great content Superior reach Opportunities: Fulfil customer needs in selected brands/domains Data-driven advertising solutions Cost innovation 8 Dec
Slide 9: Sanoma’s strategy
1. Sanoma in brief 2. Sanoma’s strategy 3. Q3 2015 Interim Report 4. Appendix 9 December 2015
Slide 10: Quick Look at Sanoma’s Strategy
Quick Look at Sanoma’s Strategy Mission: Get the world – Sanoma helps people access and understand the world Our strategic aspiration Market leader in consumer media and learning in our countries of operation Our strategic goals Growth and transformation Renewal of products and services Profitabilit
Slide 11: Strategic Implementation
Strategic Implementation Mission: Get the world – Sanoma helps people access and understand the world Our strategic aspiration Market leader in consumer media and learning in our countries of operation Our strategic goals Growth and transformation Renewal of products and services Profitability & bal
Slide 12: Share of New Media Sales Growing
Share of New Media Sales Growing New media sales +6% in Q3 2015 Media BeNe & Media Finland Learning Share of rolling 12 month net sales Share of rolling 12 month net sales New Digital, hybrid media sales and services 40% 46% 12 December 2015
Slide 13: Unique Cross-Media Position – Fulfil Customer Needs in Selected Domains
Unique Cross-Media Position – Fulfil Customer Needs in Selected Domains Consumers Examples of brands Targets Quality and Growth in video Largest reach Expanding Leadership in digital reach and digital and high-quality partnerships classifieds’ leadership entertainment B2B products market in news mar
Slide 14: Media BeNe – SBS Has Positive Momentum
Media BeNe – SBS Has Positive Momentum Viewing share in June and July highest for SBS since August 2011 Viewing share on improving path Prime-time share – Viewing share increased to 22.6% in Q3 of viewing in 20-54 target group TV advertising market improved by 11% in Q3 22.6 – June first growth
Slide 15: Domain Approach Paying Off – Case vtwonen
Domain Approach Paying Off – Case vtwonen Sundays 18:30-19:30 on SBS6 10 episodes in 2014 Viewers per episode Leading Dutch home deco brand (in thousands) Voiko näitä jotenkin yhdistää? 550 New sales built around magazine brand 470 475 485 505 380 6: 550k 415 375 7: 330k 330 260 (TV show / E-com
Slide 16: Good Growth in Digital Sales of News Brands
Good Growth in Digital Sales of News Brands Ilta-Sanomat and Helsingin Sanomat Ilta-Sanomat continues strong Growth in digital sales growth in digital Very strong position in mobile. Mobile sales developing extremely well +8% ISTV weekly video starts record high in September at over 3 million Q3
Slide 17: Learning – Highlights of Success
Learning – Highlights of Success Organic sales growth in 2014 + 1.0% Teacher Online Services platform in Finland reaches 90% Successful new digital tools and services penetration of teachers 1–9/2015 organic growth slightly negative partly Of primary school pupils in due to increased savings by
Slide 18: Strategic Implementation
Strategic Implementation Mission: Get the world – Sanoma helps people access and understand the world Our strategic aspiration Market leader in consumer media and learning in our countries of operation Our strategic goals Growth and transformation Profitability & balance sheet Cost-savings programme
Slide 19: Significant Cash Flow from Sale of Real Estate and Non-Core Operations
Significant Cash Flow from Sale of Real Estate and Non-Core Operations Sold media operations Cash flow from divestments (cumulative) • Belgium (TV & 3 magazine titles) • Bulgaria (all operations) 500 EUR million • Croatia (all operations) Media operations Other operations 450 • Czech Republic (all o
Slide 20: Cost Savings Programme Implemented
Cost Savings Programme Implemented EUR 50 million savings programme announced on 25 August 2015 – Vast majority of savings in Media Finland and to be realised by end of 2016 Savings programme will cover following areas: – Distribution and Printing – Content creation – Marketing and Sales – Suppo
Slide 21: Strategic Implementation
Strategic Implementation Mission: Get the world – Sanoma helps people access and understand the world Our strategic aspiration Market leader in consumer media and learning in our countries of operation Our strategic goals Growth and transformation Profitability & balance sheet – ”fund the journey” O
Slide 22: Major Changes in Organisation
Major Changes in Organisation Finnish organizations combined, restructuring and new operation model in multiple business units New talents secured in top management layers New Digital unit + new Head of Digital Renewal of commercial operations, new CCOs in Netherlands and Finland Centralis
Slide 23: Key Priorities
Key Priorities Fulfil customer Utilise growth Accelerate Increase needs in and digital cost innovation financial selected transformation flexibility brands/ opportunities domains in Learning 23 December 2015
Slide 24: Q3 2015 Interim Report
1. Sanoma in brief 2. Sanoma’s strategy 3. Q3 2015 Interim Report 4. Appendix 24 December 2015
Slide 25: Q3 2015 in Brief – Profitability at Prior Year’s Level
Q3 2015 in Brief – Profitability at Prior Year’s Level Net sales, organic growth -0.4%, EUR 458.8 million (477.8) EBIT excluding non-recurring items, EUR 62.5 million (62.1) – Media BeNe – Cost savings, smaller portfolio and domain approach pay off. In addition, strong TV market supported improv
Slide 26: Challenging Advertising Markets
Challenging Advertising Markets Good improvement in Dutch advertising market – Finland continues to be subdued Netherlands FY/’14 Q1/’15 Q2/’15 Q3/’15 Newspapers -4 -4 -4 -4 Magazines -12 -15 -18 -18 TV +2 -4 -6 +11 Radio +3 +1 +1 +1 Online +11 +10 +4 +9 Total market* +4 +2 -1 +4 Finland FY/’14 Q1/’
Slide 27: Net Sales Development
Net Sales Development Q3 2015 7–9/2015 7–9/2014 7–9/2015 EUR million EUR million organic growth, % Media Good growth in TV sales. Net sales grew BeNe: when normalised for the current portfolio. Group 458.8 477.8 -0.4 Absolute sales impacted by divestments Media BeNe 196.4 203.6 -0.3 and closures of
Slide 28: EBIT Excluding Non-Recurring Items Development
EBIT Excluding Non-Recurring Items Development Q3 2015 EUR million 7–9/2015 7–9/2014 Media + Solid quarter for SBS in positive TV BeNe: advertising market Group 62.5 62.1 + Cost efficiency as a result of smaller portfolio and domain approach Media BeNe 20.1 13.9 - Divestment of magazines in Belgium
Slide 29: Income Statement
Income Statement Reported figures impacted by multiple divestments EUR million 7–9/2015 7–9/2014 1–9/2015 1–9/2014 1–12/2014 Net sales 458.8 477.8 1,307.8 1,449.1 1,901.6 EBITDA excl. non-recurring items 125.5 119.3 300.6 318.2 392.0 of net sales 27.4% 25.0% 23.0% 22.0% 20.6% Amortisations related t
Slide 30: Free Cash Flow
Free Cash Flow Cash flow from operations less cash CAPEX EUR million 7–9/2015 7–9/2014 1–9/2015 1–9/2014 1–12/2014 EBITDA excl. non-recurring items 125.5 119.3 300.6 318.2 392.0 TV programme costs -60.5 -51.5 -151.5 -137.7 -184.7 Prepublication costs -7.4 -7.2 -21.7 -21.5 -28.5 Change in working cap
Slide 31: Capital Structure
Capital Structure 30 September 2015 Net debt: EUR 852 million (Q3 2014: 825) Key figures – Net debt / EBITDA adjusted 6.1 times (4.5) Net debt (lhs) Net debt / EBITDA* (rhs) *EBITDA adjusted: 12-month rolling EBITDA excl. non- 1000 950 7 920 930 recurring items, where acquired operations are inc
Slide 32: Additional Amortisations of TV rights in Q4 2015
Additional Amortisations of TV rights in Q4 2015 As part of ongoing review of TV rights, initial valuation done for programme rights in the Netherlands Changes in competitive environment and consumer habits will lead to devaluation especially of international fiction – In the beginning of 2015 S
Slide 33: Group Outlook for 2015 Unchanged
Group Outlook for 2015 Unchanged Outlook 2014 1–9/2015 2015 actuals actuals Outlook (published on 16 July 2015) Net sales growth EUR 1,901.6 million, EUR 1,307.8 million, “Around previous year’s (organic) organic growth organic growth development -3.7% -3.7% (2014: -3.7%)” Operating profit margin, E
Slide 34: Appendix
1. Sanoma in brief 2. Sanoma’s strategy 3. Q3 2015 Interim Report 4. Appendix 34 December 2015
Slide 35: Net Sales Split
Net Sales Split Rolling 12 months Media operations Learning Netherlands and Finland 87% of net sales Diversified portfolio with several key markets 46% 34% 41% 27% 15% 12% 12% 8% 4% 1% Netherlands Finland Belgium Other Netherlands Poland Finland Belgium Sweden International Consumer media (BeNe and
Slide 36: Consumer Confidence
Consumer Confidence 30 8.8 20 10 0 7.5 -10 -20 -30 -40 Sep Sep Sep Sep Sep May May May May May Mar Nov Mar Nov Mar Nov Mar Nov Mar Jan Jul Jul Jul Jul Jul Jan Jan Jan Jan 2011 2012 2013 2014 2015 Netherlands Finland Source: Eurostat 36 December 2015
Slide 37: Summary of Operating Performance
Summary of Operating Performance Last 12 months* – New media sales: EUR 570 million in Media Finland and Media BeNe Three Strategic Business Units Media Finland Media BeNe Learning Other** TV & Radio Net sales EUR 340 million Magazines Net sales EUR 560 million Online & Mobile Net sales Q4/2014 – Q3
Slide 38: Sanoma Group
Sanoma Group Net sales EUR 1,902 million, EBIT excl. nri EUR 118.8 million Net sales by type of sales, FY 2014 Cost structure FY 2014* Other & elim. Transport and distribution 10 % 5% TV & Radio 18 % Paper, raw materials, supplies, printing 10 % Learning 15 % Other cost of sales 10 % Total cost of s
Slide 39: Media BeNe
Media BeNe Net sales EUR 870.8 million, EBIT excl. nri EUR 71.2 million Net sales by type of sales, FY 2014 Cost structure FY 2014* Transport and distribution 15 % Other 17% Print circulation Paper, raw materials, supplies, printing 10 % 42% Other cost of sales 15 % TV & radio 22% Total cost of sale
Slide 40: Media Finland
Media Finland Net sales EUR 637.2 million, EBIT excl. nri EUR 23.5 million Net sales by type of sales, FY 2014 Cost structure FY 2014* Other 10% Transport and distribution 15 % TV & radio 15% Paper, raw materials, supplies, printing 10 % Print circ. 42% Other cost of sales 10 % Online & mobile Total
Slide 41: Learning
Learning Net sales EUR 292.0 million, EBIT excl. nri EUR 51.4 million Net sales by type of sales, FY 2014 Cost structure FY 2014* Pure 33% Transport and distribution 5% digital 14% 25% Paper, raw materials, supplies, printing 10 % 16% 12% Other cost of sales 10 % 9% Print 4% Hybrid 52% Total cost of
Slide 42: Media BeNe Key figures
Media BeNe Key figures 2015 2014 2013 EUR million Q3 Q2 Q1 FY 2014 Q4 Q3 Q2 Q1 FY 2013 Net sales 196.4 216.0 189.5 870.8 241.5 203.6 231.7 194.0 896.8 Digital 70.6 83.9 67.1 308.6 90.3 67.8 84.6 65.9 305.3 Online & mobile 19.8 21.6 20.9 87.2 24.9 20.1 21.8 20.4 90.3 TV 50.8 62.3 46.2 221.4 65.4 47.7
Slide 43: Media Finland Key figures
Media Finland Key figures 2015 2014 2013 EUR million Q3 Q2 Q1 FY 2014 Q4 Q3 Q2 Q1 FY 2013 Net sales 131.9 145.7 143.0 637.2 165.5 148.0 164.6 159.0 675.4 Digital 46.6 56.9 50.0 198.7 53.2 43.5 53.4 48.6 185.9 Online & mobile 22.1 25.7 21.9 84.8 23.2 18.3 22.1 21.3 74.7 TV & radio 24.6 31.2 28.0 113.
Slide 44: Learning Key figures
Learning Key figures 2015 2014 2013 EUR million Q3 Q2 Q1 FY 2014 Q4 Q3 Q2 Q1 FY 2013 Net sales 121.8 97.9 37.4 292.0 30.9 113.0 106.9 41.2 304.6 Netherlands 27.5 39.9 21.5 98.1 8.3 24.6 40.7 24.5 95.3 Poland 57.2 12.8 6.6 86.8 12.6 51.1 17.8 5.2 83.8 Finland 11.0 25.5 3.8 48.3 4.1 10.6 28.8 4.8 53.5
Slide 45: Dividend Per Share EUR 0.20
Dividend Per Share EUR 0.20 Dividend per share and dividend yield* Payout ratio (DPS / EPS excluding non-recurring items, %) 6.8% 8.1% 0.60 0.60 77 69 61 4.3% >50% 1.6% 0.20 23 0.10 2011 2012 2013 2014 2011 2012 2013 2014 Dividend policy Sanoma conducts an active dividend policy and primarily pays o
Slide 46: Sanoma – Largest Shareholders
Sanoma – Largest Shareholders % of shares 31 November 2015 and votes 23.2% 1. Jane and Aatos Erkko Foundation 23.18 2. Antti Herlin (Holding Manutas Oy: 11.02%, 11.04 personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 48.4% 5. Helsingin Sanomat Foundation 3.50 11.0% 6. Ilmarinen Mut
Slide 47: Analyst Coverage
Analyst Coverage Carnegie Investment Handelsbanken Pohjola Bank Capital Markets Kimmo Stenvall Matti Riikonen Rasmus Enberg tel. +358 10 252 4561 tel. +358 9 6187 1231 tel. +46 8 701 5116 Pohjola.fi Carnegie.fi Handelsbanken.com/ capitalmarkets SEB Enskilda Danske Markets Equities Jutta Ra
Slide 48: Sanoma’s IR Contact
Sanoma’s IR Contact Mr Pekka Rouhiainen tel. +358 40 739 5897 pekka.rouhiainen@sanoma.com 48 December 2015
Slide 49: Important Notice
Important Notice The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of
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