Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Shareholder Meeting (March 2015)
37 slides from Alma Media Oyj's shareholder meeting presentation, Mar 17, 2015
Slide 1: From the President and CEO
From the President and CEO Kai Telanne Annual General Meeting of Alma Media Corporation 17 March 2015
Slide 2: Agenda
Agenda • Alma Media’s business operations in 2014 • A review of the Finnish media market • Alma Media’s financial performance in 2014 • Alma Media’s strategy and outlook 2 1 7 March 2015
Slide 3: Alma Media's business operations in 2014
Alma Media’s business operations in 2014 REGIONAL MEDIA DIGITAL CONSUMER SERVICES Revenue MEUR 145, 3% digital Revenue MEUR 56, 100% digital EBIT MEUR 10 (7%) EBIT MEUR 9 (16%) 758 employees 491 employees Regional Digital Consumer Media Services NATIONAL CONSUMER MEDIA FINANCIAL MEDIA AND BUSINESS S
Slide 4: Geographical operating area 2014
Geographical operating area 2014 Finland • Alma Media operates in 12 countries in Northern • Population: 5.4 million Europe and Eastern Central Europe. • GDP growth 1% (2015E) • Internet access • International business operations are focused on 97% of the population the recruitment business and mark
Slide 5: Development and distribution of Alma Media's revenue 2008–2014
Development and distribution of Alma Media’s revenue 2008–2014 5 1 7 March 2015
Slide 6: Share of digital business in Alma Media's revenue 2008–2014
Share of digital business in Alma Media’s revenue 2008–2014 6 1 7 March 2015
Slide 7: A review of the Finnish media market
A review of the Finnish media market
Slide 8: Readership of national newspapers 2001–2014
Readership of national newspapers 2001–2014 1,400 1,200 1,000 Helsingin Sanomat Ilta-Sanomat 1000 pcs 800 Iltalehti 600 Kauppalehti 400 200 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8 1 7 March 2015 KMT Lukija, TNS Gallup Oy
Slide 9: Readership of regional newspapers 2009–2014
Readership of regional newspapers 2009–2014 400 350 Aamulehti 300 Turun Sanomat 250 Kaleva 1000 pcs 200 Keskisuomalainen 150 Satakunnan Kansa 100 Lapin Kansa 50 Kainuun Sanomat 0 Pohjolan Sanomat 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9 1 7 March 2015 KMT Lukija, TNS G
Slide 10: Combined reach still at a good level
Combined reach still at a good level Combined reach for newspaper and website (%) in its own market area 2010 2011 2012 2013 s13k14 100 80 80 79 80 76 78 75 77 75 74 76 77 78 74 76 78 74 72 72 73 73 72 73 73 70 69 69 70 70 71 69 69 69 70 70 71 60 % 40 20 0 Aamulehti Satakunnan Lapin Kansa Pohjolan K
Slide 11: Development of marketing communications 2008–2013
Development of marketing communications 2008–2013 Development of marketing Media advertising accounted for communications and media marketing communications advertising 50% Media advertising total Marketing media in total 40% 4000 3500 30% 3000 2500 Meur 20% 42% 41% 41% 41% 40% 2000 38% 1500 1000 10
Slide 12: Media advertising, share of GDP
Media advertising, share of GDP 1 0.9 0.9 0.85 0.81 0.85 0.82 0.82 0.8 0.8 0.78 0.81 0.81 0.8 0.76 0.75 0.78 0.76 0.74 0.760.74 0.75 0.73 0.7 0.73 0.75 0.7 0.6 0.6 0.6 0.5 *estimat e 0.4 12 1 7 March 2015 Finnish Advertising Council, Alma Media’s estimate
Slide 13: Development of media advertising by media, 1999–2014
Development of media advertising by media, 1999–2014 Meur 800 Newspapers 700 Magazines 600 Printed 500 directories Television 400 Online 300 Radio 200 100 Film 0 Outdoor and 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 transport 13 1 7 March 2015 • Printed director
Slide 14: Media advertising by channel, 1999–2014
Media advertising by channel, 1999–2014 100% Meur Outdoor 1% 1% 1% 1% 1% 2% 3% 6% 90% 8% 10% 14% 15% 16% 16% Cinema 20% 19% 18% 17% 17% 18% 18% 20% 23% 80% 17% 18% 18% 70% 18% 20% Radio 16% 17% 17% 20% 21% 60% 23% 15% 15% 15% 15% 14% 14% 23% Online media 50% 14% 12% 11% 11% 10% 9% 40% 8% Television
Slide 15: Alma Media's financial performance in 2014
Alma Media’s financial performance in 2014
Slide 16: Alma Media's revenue and operating profit 2013–2014
Alma Media’s revenue and operating profit 2013– 2014 Liikevaihto, Revenue, MEURMEUR Operating profit, Liikevoitto, MEUR MEUR IFRS IFRS -6,2% -27,8% -1,6% -11,5% 350 30 300 25 2,8 300,2 295,4 24,2 250 20 21,4 200 15 150 10 100 5 50 0 -0,7 0 -5 2013 2014 2013 2014 Non-recurringerät Kertaluonteiset ite
Slide 17: Digital Consumer Services segment 2013–2014
Digital Consumer Services segment 2013–2014 Revenue, MEUR Operating profit, MEUR Liikevaihto, MEUR Liikevoitto, MEUR Non-recurring items Non-recurring items ilman kertaluonteisia eriä ilman kertaluonteisia eriä +6,1% +1,3% +23,6% -2,3% 60 10 55,8 9 9,4 50 52,6 9,2 8 40 7 6 30 5 4 20 3 10 2 1 0 0 201
Slide 18: Financial Media and Business Services segment 2013–2014
Financial Media and Business Services segment 2013–2014 Revenue, MEUR Liikevaihto, MEUR Operating Liikevoitto, MEURprofit, MEUR Non-recurring ilman items kertaluonteisia eriä Non-recurring items ilman kertaluonteisia eriä -3,7% -6,7% +19,3% -14,5% 60 9 56,8 8 50 53,0 7,8 7 40 6 6,7 5 30 4 20 3 10 2
Slide 19: National Consumer Media segment 2013–2014
National Consumer Media segment 2013–2014 Revenue, MEUR Liikevaihto, MEUR OperatingMEUR Liikevoitto, profit, MEUR Non-recurring ilman kertaluonteisiaitems eriä Non-recurring ilman items kertaluonteisia eriä -10,1% -4,2% -39,5% -22,0% 60 5,0 4,5 4,7 50 49,0 4,0 46,9 40 3,5 3,7 3,0 30 2,5 2,0 20 1,5 1
Slide 20: Regional Media segment 2013–2014
Regional Media segment 2013–2014 Revenue, MEUR Operating profit, MEUR Liikevaihto, MEUR Liikevoitto, MEUR Non-recurring items Non-recurring items ilman kertaluonteisia eriä ilman kertaluonteisia eriä -10,7% -1,3% -54,1% -1,7% 160 12 140 147,1 145,2 10 120 9,8 9,6 100 8 80 6 60 4 40 20 2 0 0 2013 201
Slide 21: Investment stage debt has been paid off to a significant extent
Investment stage debt has been paid off to a significant extent Net debt 2010–2014 120 100 97,6 80 60 71,1 62,3 MEUR 40 20 0 -20 -32,4 -32,3 -40 2010 2011 2012 2013 2014 21 1 7 March 2015
Slide 22: The equity ratio has improved considerably
The equity ratio has improved considerably Equity ratio, % Gearing, % 45 120 40 42,6 110,5 100 35 34,4 30 80 25 60 68,5 20 15 40 10 20 5 0 0 2013 2014 2013 2014 22 1 7 March 2015
Slide 23: Earnings per share at the previous year's level
Earnings per share at the previous year’s level 0,25 0,20 1,4 0,19 1,2 1,14 1,17 0,20 1,0 0,15 0,44 0,47 0,23 0,8 0,10 0,20 0,6 0,05 0,4 0,70 0,70 0,00 -0,01 0,2 -0,03 -0,05 0,0 2013 2014 2013 2014 non-recurring erät Kertaluonteiset items Retained earnings Kertyneet voittovarat Tulos/osake ilman ker
Slide 24: Dividend proposal takes debt servicing and investments into account
Dividend proposal takes debt servicing and investments into account Dividend * and effective dividend yield 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dividend*, EUR 0.65 0.90 0.30 0.40 0.70 0.40 0.10 0.10 0.12 Effective dividend 7.7% 6.1% 5.3% 5.3% 8.5% 6.5% 2.2% 3.3% 4.4% yield *dividend and cap
Slide 25: Alma Media's strategy and outlook
Alma Media’s strategy and outlook
Slide 26: Alma Media's long-term financial targets
Alma Media’s long-term financial targets Alma Media’s 2011 2012 2013 2014 Target financial targets level Digital business 16.3% 36.8% 8.4% 11.9% > 15% growth Return on 26.1% 13.8% 10.0% 9.7% > 15% Investment (ROI), % Dividend payout 103% 45% 50% 63%** > 50% ratio* * Includes capital repayment to sha
Slide 27: Alma Media's strategic themes
Alma Media’s strategic themes • Paid content on all channels selected by the consumer MULTI-CHANNEL CONTENT • Development of mobile content • Closer co-operation in content production • Increasing the digital offering, including mobile and instream MARKETING SOLUTIONS • Growing content marketing sol
Slide 28: Robust Regional Media
Robust Regional Media Businesses to be continued: Businesses to be divested: • The regional newspapers • Regional newspaper Aamulehti, Satakunnan Kainuun Sanomat Kansa, Pohjolan Sanomat and Lapin Kansa • Local papers Sotkamo- lehti, Ylä-Kainuu and • 21 town papers and local Kuhmolainen papers • Town
Slide 29: On the way to becoming a Europe-wide provider of recruitment services
On the way to becoming a Europe-wide provider of recruitment services 2 0 1 2 –20 13 2014 GROWING THE ALMA CAREER OY RECRUITMENT BUSINESS MEUR 72 ACQUISITIONS 85% 15% 29 1 7 March 2015
Slide 30: The market leader in almost all of its markets
The market leader in almost all of its markets FINLAND 11 operating countries ESTONIA, LATVIA AND LITHUANIA POLAND 400 employees CZECH REPUBLIC MEUR SLOVAKIA 35 in revenue HUNGARY >30% CROATIA EBITDA SERBIA AND BOSNIA (MINORITY INTERESTS) 30 1 7 March 2015
Slide 31: Development of GDP and media advertising
Development of GDP and media advertising GDP Advertising 25% 15% 5% -5% -15% -25% 31 1 7 March 2015 Finnish Advertising Council, Statistics Finland
Slide 32: Consumer confidence indicator in February below the long-term average
Consumer confidence indicator in February below the long-term average net change indicator net change indicator ow n ec onomy Fi nland’s economy 1 ) av erage 1 0/1995 – 02/2015 32 1 7 March 2015 Statistics Finland
Slide 33: The economic barometer indicates a subdued outlook in February
The economic barometer published by the Federation of the Confederation of Finnish Industries (EK) indicates a subdued outlook in February Net change Industry Construction Services 33 1 7 March 2015 Confederation of Finnish Industries
Slide 34: The economic situation and outlook in commerce remain exceptionally weak
The economic situation and outlook in commerce remain exceptionally weak Industry Construction Services Commerce Net change Econ omic situation Net change Econ omic situation Net change Net change Econ omic outlook Econ omic outlook Econ omic situation Ec onomi c situation Ec onomi c outlook Econ om
Slide 35: EUR-USD exchange rate
EUR-USD exchange rate 35 1 7 March 2015 Kauppalehti.fi
Slide 36: Oil price development
Oil price development 36 1 7 March 2015 Financial Times
Slide 37: Outlook February 2015
Outlook 13 February 2015 Low interest rates, a weaker euro and lower oil price improve the chances for growth in the long run. However, in 2015, economic growth is still expected to remain weak in Europe and, in particular, in Finland. The weak overall economic growth has an impact on advertising vo