Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Q1 2017 Earnings Presentation
23 slides from Sanoma Oyj's earnings presentation, Apr 26, 2017
Slide 1: Sanoma Q1 2017 Results
Sanoma Q1 2017 Results Susan Duinhoven - President and CEO Markus Holm – CFO and COO
Slide 2: Highlights of Q1 2017
Highlights of Q1 2017 Operational EBIT improved to EUR 11 million (2016: 2) mainly due to cost innovations and one-off corrections Organic net sales reduced by 2% due to decreased single copy sales and timing difference in Learning in seasonally small quarter Divestment of SBS, Dutch FTA TV bu
Slide 3: Continuous performance improvement
Sanoma Q1 2017: Q1 Operational EBIT EUR million Continuous performance improvement 19* 11 9 Sanoma Group Q1/17 Q1/16 7 EUR million Net sales 343.8 353.1 Organic growth -2.4% -0.1% -2 Operational EBIT 11.4 1.9 -6 -11 -15 Media BeNe Media Learning Other Finland 1-3 / 2016 1-3 / 2017 3 26 April 2017 Q1
Slide 4: Media Advertising Markets
Media Advertising Markets Preliminary estimate on Netherlands Q1/16 FY/16 Q1/17* Magazines -8% -7% -7% TV +6% -2% -3% Online* +10% +10% +7% Total market* +4% +3% +3% Sanoma’s outlook for 2017 is based on the assumption of the advertising market development Finland Q1/16 FY/16 Q1/17* in Finland and t
Slide 5: Sanoma Divests SBS to Talpa
Announcement April 10: Sanoma Divests SBS to Talpa SBS is #3 free-to-air TV business in the Dutch market with four TV channels (SBS 6, NET 5, SBS 9 and Veronica) Sanoma to receive a net cash consideration of EUR 237 million for its 67% stake and 100% ownership of the TV guide business Veronica U
Slide 6: Key Benefits of Transaction
Key Benefits of More balanced composition of net sales Transaction Group net sales 2016, pro forma for SBS divestment 100 % 14% 14% 90 % Improved financial and strategic flexibility 80 % 17% 20% to grow and create value in stronghold 70 % businesses – Reduced leverage with Net debt / adj. EBITDA 6
Slide 7: Media BeNe Q1
Composition of Media BeNe net sales 2016: Media BeNe Q1 EUR 544 million, pro forma for SBS divestment Continuous cost innovations improving profitability 26% 22% Focus on strongholds: cross media expansion of our leading media brands in Non-print key domains media Organic net sales down -4%. Sub
Slide 8: Media Finland Q1
Number of Helsingin Sanomat Media Finland Q1 digital subscribers Stable sales, cost innovations and one-offs improving profitability Q1 2017: Stable organic net sales with TV and 58% paying for digital online sales developing positively (54%) Operational EBIT significantly up mainly due to conti
Slide 9: Learning Q1
Number of users in digital learning platforms Learning Q1 Seasonally small first quarter at somewhat lower level Q1 2017: Changes in ordering pattern moving sales into +28% Q2 decreased sales by 4% in a typically small quarter New curriculum development in Poland progressing well though impactin
Slide 10: Group Outlook for 2017
Announcement April 10: Group Outlook for 2017 Net sales, adjusted for structural changes including SBS divestment, will be stable and Operational EBIT margin will be above 10% The outlook is based on the assumption of the advertising market development in Finland and the Netherlands being in l
Slide 11: Financials
Financials
Slide 12: Operational EBIT Improved Significantly
Operational EBIT Improved Significantly Q1/2017 Media BeNe: + Cost innovations EUR million - Higher seasonal loss in SBS +8.0 -4.1 - Lower sales +3.7 11.4 Media + One-off corrections (EUR 4.4 million) Finland: + Cost innovations + Improved sales mix Learning: - Lower sales - New methods in Poland -
Slide 13: Free cash flow improved
Free cash flow* improved 0 -10 -20 -51 -30 -62 10 -8 -40 -10 1 -50 21 -3 -60 -70 2016 Q1 EBITDA** Financial Net working TV rights Taxes Cash capex 2017 Q1 items capital * Free cash flow = cash flow from operations less capex ** EBITDA adjusted for SBS, capital gains/losses of businesses and share of
Slide 14: Income Statement
Income Statement EUR million 1-3/2017 1–3/2016 1–12/2016 Net sales 343.8 353.1 1,639.1 Operational EBITDA 82.4 73.5 452.4 Depreciation and amortisations -71.0 -71.6 -284.6 Amortisations related to TV programme rights -51.3 -51.4 -180.9 Amortisations related to prepublication rights -5.8 -5.2 -20.4 O
Slide 15: Financial impacts of SBS divestment
Capital loss related to SBS, Q1 and FY estimate Financial impacts of SBS divestment Following the announcement, all assets and liabilities relating to SBS are classified as held for sale in accordance with IFRS5 resulting in a -287 non-cash capital loss for Sanoma -425 The net impact on Sanoma’s
Slide 16: Lower Financing costs
Debt structure as of 31 March 2017, EUR million Lower Financing costs (Including SBS loans) 49 19 6 200 EUR 200 million of Bond 2017 paid back, using commercial papers and bank financing 75 Net financial items EUR -6.6 million (-8.7) 42 Average interest rate down to 2.5% (3.1%) 477 in Q1 50 Bo
Slide 17: Deleveraging continues with typical seasonal uplift
Deleveraging continues 1000 950 930 7 with typical seasonal uplift 900 825 802 845 852 801 823 855 864 6 786 800 766 700 5 Net debt/EBITDA adjusted* 3.5 times (4.7) 600 4 Net debt: EUR 864 million (823) 500 – Cash flow Q1 improved by EUR 12 million 3 400 – Hybrid bond of EUR 100 million redeemed
Slide 18: Q&A
Q&A
Slide 19: Sanoma pro forma 2016 excluding SBS
Sanoma pro forma 2016 excluding SBS: Net sales EUR 1,407 million – non-print sales in media and learning 38% (EUR 540 million) Operational EBIT margin above 10% Three Strategic Business Units TV & Radio Net sales EUR 130 million Media Media BeNe Learning Finland Magazines Net sales EUR 460 million 2
Slide 20: Seasonality in SBS
Seasonality in SBS 2016 Net sales split Operational EBIT in relative terms 21% 30% 27% 22% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20 26 April 2017 Q1 2017 Result
Slide 21: Sanoma – Largest Shareholders
Sanoma – Largest Shareholders % of shares 31 March 2017 and votes 24,5 % 1. Jane and Aatos Erkko Foundation 24.46 2. Antti Herlin 11.49 (Holding Manutas Oy: 11.47%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 46,7 % 5. Helsingin Sanomat Foundation 3.50 6. Ilmarinen Mutual Pen
Slide 22: 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
Slide 23: sqnomd
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