Slide 1: Alma Media in the Digital Frontline
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST Q2 2023 1
Slide 2: Strong market position and leading brands in key areas
Strong market position and leading brands in key areas RECRUITING #1 Czech Republic prace.cz, jobs.cz #1 Slovakia profesia.sk 1 #1 Croatia mojposao.net #3 Finland jobly.fi 1 #1-2 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia
Slide 3: Business Segments and drivers for growth
Business Segments and drivers for growth Expanding traditional job Offering market leading Leading business media boards and recruitment industry verticals for buyers and expanding to digital advertising to career sellers with comprehensive information services for development and staffing, digital
Slide 4: Q2 2023 Highlights
Q2 2023 Adjusted operating profit in Q2 was on par with the Highlights comparison period, while revenue decreased slightly REVENUE (MEUR)* ADJUSTED OPERATING PROFIT* -1.4 % (MEUR) (% OF REVENUE) 0.7 % 24.3 % 24.8 % 23.2 % 72 79 78 16.6 19.2 19.4 Q2 2021 Q2 2022 Q2 2023 Q2 2021 Q2 2022 Q2 2023 • Soli
Slide 5: Alma Career: All-time second-best performance in segment's history
Alma Career All-time second-best performance in segment's history REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY OPERATING MARGIN (%) Q2/2023 (REVENUE CHANGE IN BRACKETS) Czech Rep., 57% (+1.5%) 41.5 % 43.1 % 36.9 % 39.9 % Slovakia, 18% (+5.9%) 30.8 % Croatia, 10% (+14.8%) Baltics,
Slide 6: Invoicing & revenue recognition in Alma Career
Invoicing & revenue recognition in Alma Career 18,000 16,000 14,000 12,000 KEUR 10,000 8,000 6,000 4,000 2,000 - 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 2020 2021 2022 2023 Revenue Invoicing KPIs (monthly averages in thousands) 1-6/2023 2022 2021
Slide 7: Alma Consumer: Profitability weighed down by the decline of advertising
Profitability weighed down by the decline of advertising Alma revenue in media and marketplaces Consumer REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q2/2023 ADVERTISING SALES REVENUE OPERATING MARGIN (%) (REVENUE CHANGE RATES IN (MEUR)* BRACKETS*) 13.0 12.8 24.4 % 26.9 % Media and ad-finan
Slide 8: Alma Talent: Adjusted operating profit increased
Adjusted operating profit increased, driven by the stellar Alma Talent performance in Talent Services REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q2/2023 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 21.7 % 20.5 % 20.3 % 17.9 % 20.1 % Alma Talent Media 53% (-7.4%) Alma Tale
Slide 9: Digital business growth on par with the comparison period
Digital business growth on par with the comparison period SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 82% 77% 69% 57 % 66% 61% 63% 58% 59% 53% ** 41 % 51% 39 % 40 % 16 % 15 % 3% 5% 2% 1% 0% -4 % 82 91 100 125 146 160 165 158 212 250 126 -17 % 2013 2014 2015 2016 2017 201
Slide 10: Digital transformation and change in business mix driving operational gearing
Digital transformation and change in business mix driving operational gearing REVENUE ADJUSTED OPERATING PROFIT MEUR MEUR 2022* 80.9 % 90% 2022* 25.0 % 80% 23.8 % 13 22 70% 20.0 % 95 60% 15.0 % 50% 250 40% 2014 10.0 % 32.0 % 30% 2014 7.2 % 20% 5.0 % 179 10% 45 21 73 0% 0.0 % 2014 2022* 2014 2022* Pr
Slide 11: Alma Media strategy
Alma Media strategy TRANSFORM THE CORE 1. • Continue to diversify from media to marketplaces and digital services • Develop marketplaces towards advanced digital platforms • Maximise group synergies through efficient co-operation GROW IN DIGITAL 2. • Diversify and develop new revenue streams in curr
Slide 12: Alma Media Strategy: Synergy creation
Alma Media Strategy Synergy creation Alma Media concentrates on recruitment, housing and commercial property, mobility, media and information services with synergies: • By utilising the reach of media platforms, directing user Shared traffic and commercialising the user data for growing high AUDIENC
Slide 13: From classified advertising to transactions
From classified advertising to transactions Entering larger potential market and enabling new revenue sources B U Y E R S SEARCH EVALUATE NEGOATIATE OWNERSHIP & & & Close & PROVIDE MARKET CLOSE CRM S E L L E R S , B 2 B PA R T N E R S ADVERTISING TRANSACTIONS We further develop and We help to stream
Slide 14: Sustainability as an integral part of our strategy
Sustainability as an integral part of our strategy Alma Media has gained international recognisitionby its ambitious work for climate and responsible business. ENVIRONMENTAL Alma Media halved its carbon footprint Scope 1&2 in 2016–2022 - Minimising CO2 emissions in own operations and in subcontracti
Slide 15: Continuing the renewal of portfolio – net investments over MEUR 200
Continuing the renewal of portfolio – net investments over MEUR 200 to digital transformation and growth INVESTMENTS OF WITH A STRONG FOCUS ON DIGITAL BUSINESS Techloop Alma Mediapartners (35%) Nettix AutoJerry Kolektiv Alma Career (17%) Toimitilat.fi Katsastushinnat.fi DIAS (80%) Netello (60%) DOKS
Slide 16: Operating Environment
OPERATING ENVIRONMENT
Slide 17: Challenging operating environment
Challenging operating environment Slowing Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Growth decelerates in all Digitalisation continues to Regulatory environment Russian aggression in Ukraine operating countries. High change consumer behaviour. complexe
Slide 18: Ukrainian crisis
Ukrainian crisis • Russia’s aggressive invasion to Ukraine, brought severe economic and business consequences: • Significantly higher energy prices and inflation • Lower economic growth in Europe • Increased volatility and insecurity • Disruptions in financial markets and supply chains due to sancti
Slide 19: Challenging operating environment
Challenging operating environment Slowing Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Growth decelerates in all Digitalisation continues to Digital legislation increases. Geopolitical tensions are operating countries. High change consumer behaviour. Grow
Slide 20: European Commission financial forecast for Alma's operating countries
European Commission financial forecast for Alma's operating countries Forecasts given on 15 May, 2023 GDP change (%) Inflation (%) Unemployment (%) 2022 2023 2022 2023 2022 2023 Croatia 6.2 1.6 10.7 6.9 7.0 6.6 Czechia 2.5 0.2 14.8 11.9 2.2 2.8 Estonia -1.3 -0.4 19.4 9.2 5.6 6.2 Finland 2.1 0.2 7.2
Slide 21: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 7/2022–7/2023 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-7/2023 Source: Kantar TNS (1-7/2022)* Source: Kantar TNS 15% A-LEHDET Other 1% (1%) 10% 15% (15%) 5% Keskisuomalainen 0% ALMA MEDIA 3% (3%) 36% (38%) -5% Appr. -
Slide 22: The Finnish housing market update
The Finnish housing market update: In Q2, a total of 12,041 apartments sold — 35.7% below the five-year average Trade volumes Q2 1-12/ Etuovi.com Q2 1-12/ Vuokraovi.com Q2 2023 2023 2022 (Housing marketplace) 2023 2022 (Rental housing) Used apartments Active listings Active listings -31.7% -17.5% 10
Slide 23: The Finnish mobility update
The Finnish mobility update: Easening component shortages – registrations still behind the long-term averages Cars & mobility Q2 1-12/ Nettiauto Q2 2023 1-12/ market 2023 2022 2022 New cars Sold cars, total 19.0% -17% 4.5% -10% Used cars Gross Market 4.0% -11% 2.6% -1% value of sales Source: AKL=Aut
Slide 24: Solid Financial Position
SOLID FINANCIAL POSITION 1.9.2023 24
Slide 25: Financial position balancing and deleveraging continuing in H2
Financial position balancing and deleveraging continuing in H2 NET DEBT (MEUR) AND GEARING (%) Q2/2020–Q2/2023 EQUITY RATIO Q2/2020–Q2/2023 160.0 % 71.0 % 72.7 % 132.0 % 63.1 % 109.2 % 102.4 % 93.7 % 82.4 % 80.8 % 69.3 % 45.8 % 47.6 % 58.7 % 41.6 % 43.0 % 40.5 % 38.8 % 33.3 % 34.7 % 33.0 % MEUR 29.4
Slide 26: Good cash flow enables deleveraging
Good cash flow enables deleveraging Capital expenditure and acquisitions, MEUR OPERATING CASH FLOW 1-6/2023 1–6/2022 2022 88.5 Capex 5.6 4.0 13.2 Acquisitions 4.2 2.4 5.2 65.3 57.0 57.3 Total 9.8 6.4 18.3 MEUR • In April, Alma Media acquired a majority stake in 19.6 24.5 27.3 20.7 10.5 15.3 15.4 16.
Slide 27: EPS to 23 cents in Q2
EPS to 23 cents in Q2 0.28 0.23 • Earnings per share were EUR 0.23 (0.28). 0.19 0.20 0.20 0.18 EUR • In Q2/23 Earnings per share were improved by a 0.14 0.14 change of MEUR 4.0 in the fair value of contingent 0.12 consideration liabilities recognized in financial items. • In Q2/22 Earnings per share
Slide 28: Alma Media's long-term financial targets
* https://www.almamedia.fi/en/newsroom/ Alma Media's long-term financial targets* REVENUE GROWTH (%) ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO** 19.6 2.3 23.8 23.7 22.2 12.1 19.8 19.7 1.8 1.6 0.3 -1.8 -1.3 -0.2 -8.0 2019 2020 2021 2022 1-6 2019 2020 2021 2022 1-6 2019 2020 2021 2022 1-6 20
Slide 29: Outlook For 2023
Outlook For 2023 Announced on 16 February, 2023 • Alma Media expects its full-year revenue and adjusted operating profit of 2023 to remain at the 2022 level or to decrease from 2022 level. • The full-year revenue for 2022 was MEUR 308.8 and the adjusted operating profit was MEUR 73.4. • The outlook
Slide 30: Closing remarks
Closing remarks • Digital transformation has led to a well-balanced and synergistic business mix and to market leadership in chosen areas • The digital journey continues towards advanced platforms • Leveraging the best of current Alma Career products by expanding into new markets: Building one unifi
Slide 31: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Interim report for January–September 2023 on Thursday, 19 October 2023 31
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