Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — SanomaWSOY — Non-Deal Roadshow (November 2002)
29 slides from Sanoma Oyj's roadshow presentation, November 2002
Slide 1: SanomaWSOY Roadshow
SanomaWSOY Roadshow November 2002
Slide 2: Agenda
2 Agenda • Company overview • Strategic objectives • Divisional review • Financial highlights • Why SanomaWSOY?
Slide 3: SanomaWSOY – company overview
SanomaWSOY – company overview
Slide 4: A growing European Media Company
4 A growing European Media Company With a leading domestic multimedia portfolio • SanomaWSOY is a growing European media company with a presence in 14 European countries • Leading domestic multimedia portfolio in Finland (newspapers, magazines, books, television/cable TV, kiosk, press distribution,
Slide 5: Organizational Structure
5 Organizational Structure Five divisions led by experienced management Chairman: Jaakko Rauramo President: Hannu Syrjänen Age 60 SanomaWSOY SanomaWSOY Age 51 Joined Sanoma in 1966 Joined Rautakirja 1989 100% 100% 100% 100%* 100% Magazines Electronic Newspapers Media Consumer Media Services Books Sa
Slide 6: More than a century of publishing…
More than a century of publishing… History of SanomaWSOY <1900 1904-1910 1910-1989 1990-1999 2000-2001 2002- Domestic Beginning Founding Diversification Consolidation Internationalization Growth ?1878 – Werner ?1904 – WSOY ?1943-1944 – First ?1990’s – Several ?2000 – Division of ?March 2003 – Söders
Slide 7: Creating a platform for growth
7 Creating a platform for growth Acquisition of VNU's magazine business Sanoma Magazines Netherlands Belgium International Aldipress Finland The acquisition of VNU Magazines • More than 250 magazines with excellent strategic fit - leading positions in five European countries - opportunity to leverag
Slide 8: Delivering on our promises
8 Delivering on our promises • Established platform for international expansion - 5th largest consumer magazines publisher in Europe - 40% of revenue from outside Finland • Integration of CIG and Helsinki Media completed successfully - Management structure and organisations aligned - € 15m annualise
Slide 9: Simplifying the structure
9 Simplifying the structure Rautakirja to merge into SanomaWSOY in 2003 • SanomaWSOY Group’s pre-merger holding of separately listed Rautakirja is 57% • Rautakirja’s shareholders to receive a merger consideration of 5.3 new SanomaWSOY B-shares for each Rautakirja A- or B-share they hold • Key benefi
Slide 10: Shareholder structure after the Rautakirja merger
Shareholder structure after the 10 Rautakirja merger % of shares % of votes Aatos Erkko (Aatos Erkko + Oy Asipex Ab) 23.92 26.76 Patricia Seppälä’s estate 7.09 9.15 Werner Söderström Corporation 6.08 1.76 Sanoma Corporation 4.40 1.27 Robin Langenskiöld 4.30 4.67 Rafaela Seppälä 4.30 4.67 Tiikerijake
Slide 11: SanomaWSOY – strategic objectives
SanomaWSOY – strategic objectives
Slide 12: Combining strong and defensible market positions with growth potential
12 Combining strong and defensible market positions with growth potential Dominant domestic multimedia franchise Market leading International growth platform Newspapers Magazines • #1 national daily • Netherlands • #1 national tabloid • #1 magazine publisher in terms of • #1 regional publisher south
Slide 13: Balanced composition of revenues
13 Balanced composition of revenues Divisional 1-9/ 2002 Revenue Breakdown Geographic 2001A Revenue Breakdown Czech Republic & Slovakia 1% Sanoma Great Britain Magazines 24% 42.2% 1% Other EU 2% Hungary 2% Other 3% Rautakirja 30.9% Sanoma 49% 19.4% WSOY 8.9% Netherlands Finland 25% 60% 56% SWelcom 3
Slide 14: Dynamic and Profitable Growth
14 Dynamic and Profitable Growth 2,500 150 Est. 133.2 2,000 125 1,730 103.1 96.5 1,448 100 84.0 83.4 € million 1,500 1,321 71.7 75 1999 1,000 2000 50 2001 500 25 0 0 Figure for 2002 is Group’s estimate. Net sales Operating profit EBITA
Slide 15: Strategic objectives
15 Strategic objectives Continued growth and internationalisation • Continue building a balanced portfolio, both in terms of profitability and organic growth - Increase profitability - Sell non core assets • To be a market leader in our chosen markets and business areas • To be a leading European ma
Slide 16: New business opportunities
16 New business opportunities Achieving growth Strong in smaller and middle-sized markets and language areas • Emerging markets, e.g. Croatia • For instance: • New market openings, - Educational material e.g. Russia - Distribution • Acquisitions, mergers, alliances, partnerships
Slide 17: SanomaWSOY – divisional review
SanomaWSOY – divisional review
Slide 18: Finland’s largest news publisher
Finland’s largest news publisher 18 Still going very strong... Key Financials (€ million) Key Markets/Products Highlights Net Sales • Although financial performance is 140 119.9 118.3 120 110.3 113.2 108.5 112.6 Helsingin Sanomat down YoY due to advertising 102.8 100 environment, market share and to
Slide 19: International magazine publishing
19 International magazine publishing Clear leadership in chosen markets Key Financials (€ million) Key Markets/Products Highlights Net Sales #1 in Finland in Chosen Segments • Dramatic growth and margin 280 275.6 improvement due to the acquisition 252.1 240 232.1 227.4 of VNU-CIG 200 • Integration i
Slide 20: Commercial television challenger
20 Commercial television challenger Growing viewership and ad-share Key Financials (€ million) Key Markets/Products Highlights Net Sales “Challenger” commercial television station • Nelonen’s market share is 30 24.5 developing according to plan 25 20.8 21.5 21.6 21.1 (currently 25%) 19.2 20 18.0 • L
Slide 21: Leading Finnish book publisher
21 Leading Finnish book publisher Committed to publishing the best literature Key Financials (€ million) Key Markets/Products Highlights Net Sales 70 65.0 #1 book publisher in Finland • In the overall stable book 60 55.8 market, focus is on 51.9 52.2 50 52.0 maintenance of market position 40 42.1 42
Slide 22: Leading Nordic media distributor
22 Leading Nordic media distributor Bringing entertainment to the people Key Financials (€ million) Key Markets/Products Highlights Net Sales 204.6 #1 kiosk chain • R-Kioski is Finland’s most in Finland with 210 visited retail chain with around 176.0 170.4 179.0 714 kiosks 180 164.6 156.9 164.9 nati
Slide 23: SanomaWSOY – financial highlights
SanomaWSOY – financial highlights
Slide 24: SanomaWSOY Group By quarters 1/2
24 SanomaWSOY Group By quarters 1/2 NET SALES, € million OPERATING PROFIT (EBIT), € million 700 60 600 580.5 555.0 549.5 50 42.7 50.9 500 652.6 40 400 2001 2002 30 300 361.4 362.2 353.8 19.1 20 200 14.0 2001 2002 10 17.5 15.4 100 12.7 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 25: SanomaWSOY Group By quarters 2/2
25 SanomaWSOY Group By quarters 2/2 OPERATING PROFIT NET SALES, € million before amortisation (EBITA), € million 700 80.0 600 580.5 70.0 555.0 549.5 65.7 74.2 500 60.0 652.6 50.0 400 43.4 39.5 40.0 300 361.4 362.2 353.8 2001 2002 30.0 200 2001 2002 20.0 21.9 100 20.0 10.0 17.1 0 0.0 Q1 Q2 Q3 Q4 Q1 Q
Slide 26: Financial targets
26 Financial targets Heading for better profitability Operating profit (EBIT) of net sales, % 1999 2000 2001 average 2002–2005 target Sanoma 11.1 12.2 9.4 12.5 Sanoma Magazines 3.5* 6.4* 10.6 9.0 SWelcom -33.1 -21.3 -28.8 0.0 WSOY 11.1 9.0 8.6 12.5 Rautakirja 5.7 5.6 6.1 5.5 GROUP 5.4 5.8 5.6 9.0 *I
Slide 27: Means
27 Means Targets are challenging, but realistic: • unprofitable businesses will be restructured • heavy cost structures to be lightened • critical approach to investments • business model for eBusinesses • selling of non core assets: e.g. real estate&share portfolio (€ 400 million) • strengthening f
Slide 28: Why SanomaWSOY?
28 Why SanomaWSOY? • The Group’s successful history • Good positioning as full-service media house in Finland • Clear focus on specific business segments internationally • Strong track record of managing growth and profitability - Pursuing sustainable growth levels - Focusing on cost control • Poten
Slide 29: Committed to the Future
Committed to the Future