Sanoma Oyj · OMXHEX:SANOMA
Sanoma Oyj — Investor Presentation (June 2015)
48 slides from Sanoma Oyj's investor presentation, June 2015
Slide 1: Sanoma Corporate Presentation
Sanoma Corporate Presentation June 2015
Slide 2: Agenda
1. Sanoma in brief 2. Sanoma’s strategy 3. Q1 2015 Interim Report 4. Appendix 2 June 2015
Slide 3: Sanoma in a Nutshell
Sanoma in a Nutshell 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 June 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's Structure and Key Figures
Sanoma’s Structure and Key Figures Last 12 months* – New media sales: EUR 560 million in Media Finland and Media BeNe Three Strategic Business Units Media Finland Media BeNe Learning Other** TV & radio Net sales EUR 340 million Russia Magazines Net sales Other operations EUR 600 million Online & mob
Slide 8: Sanoma's strategy
1. Sanoma in brief 2. Sanoma’s strategy 3. Q1 2015 Interim Report 4. Appendix 8 June 2015
Slide 9: 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 Growth 2016
Slide 10: 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 Growth 2016 Profita
Slide 11: Main Achievements in Growth Story
Main Achievements in Growth Story Target to return back to organic growth in 2016 Netherlands Sanoma Group - organic growth (%) (rolling 12 months) Sale of 23 titles improves growth profile 8 New sales generated around strong brands 6 Finland 4 Good growth in digital sales of news brands TV
Slide 12: Digital is Growing
Digital is Growing New media sales grew by 5% in Q1 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 38% 49% 12 June 2015
Slide 13: Media BeNe – Dutch Content Media
Media BeNe – Dutch Content Media Circulation sales in Q1 2015 Focus on top brands in the LINDA vtwonen Netherlands is paying off Circulation sales have increased for +18% +51% many brands, however organic circulation sales development for the focus portfolio was -1% in Q1 Advertising sales und
Slide 14: 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 15: 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 growth in digital Very strong position in mobile. Mobile sales developing extremely well +19% Strong growth in ISTV video starts and sales 2013 2014 HS on g
Slide 16: Nelonen Media – Growth in TV, VOD and Radio
Nelonen Media – Growth in TV, VOD and Radio New launches strengthen TV portfolio Main channel Nelonen rebranded and renewed New channel Hero reaching new target groups Ice hockey league growing but profitability unfortunately still negative Unique content boosts VOD Entertainment content dri
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 Emerging markets provide growth Of primary school pupils in opportunity Four deals > EUR 1 million in eme
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 (only TV) 450 EUR million • Bulgaria (all operations) • Croatia (all operations) Media operations Other operations 400 • Czech Republic (all operations) Real
Slide 20: Cost Savings Programme
Cost Savings Programme – EUR 100 Million will be Achieved in Advance EUR 100 million run-rate soon Cost savings - annual run rate accomplished 100 EUR million 93 91 90 Savings of around EUR 23 million in Q1 80 Run-rate at the end of March 70 61 EUR 93 million 60 50 Outsourcing of ICT and finan
Slide 21: Strategic Implementation in 2014
Strategic Implementation in 2014 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 jo
Slide 22: Major Changes in Organisation During 2014
Major Changes in Organisation During 2014 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
Slide 23: 2015 Business Priorities
2015 Business Priorities Growth Media Learning Improve perfomance of core Digital transformation brands and domains Secure ecosystem Grow media market share Extend to new markets Speed up digital growth Develop the enablers Boost performance of SBS Cost effectiveness Culture Inte
Slide 24: Q1 2015 Interim Report
1. Sanoma in brief 2. Sanoma’s strategy 3. Q1 2015 Interim Report 4. Appendix 24 June 2015
Slide 25: Q1 – Mixed Performance in Challenging Environment
Q1 – Mixed Performance in Challenging Environment Q1 in brief Organic growth trend improving Mixed performance across businesses - Media BeNe – stable development, underlying profitability flat - Media Finland – operating performance not satisfactory - Learning – solid, Q1 impacted by major chan
Slide 26: Advertising Market Change in % vs. Prior Year
Advertising Market* Change in % vs. Prior Year Netherlands FY/’14 Q1/’15 Newspapers -4 -3 Magazines -13 -17 TV +2 -4 Radio +6 +3 Online +11 +8 Total market** +4 +2 Finland FY/’14 Q1/’15 Newspapers -9 -7 Magazines -16 -14 TV -4 -2 Radio +9 -4 Online +12 +6 Total market -4 -3 *NL: Sanoma estimates, FI
Slide 27: Group Outlook for 2015 and Mid-Term Unchanged
Group Outlook for 2015 and Mid-Term Unchanged 2014 2015 Mid-term Outlook actuals outlook outlook (2016) Net sales growth EUR 1,901.6 million, ’Around previous year’s ’Return to organic growth’ (organic) organic growth -3.7% development (2014: -3.7%)’ Operating profit margin, EUR 118.8 million, ‘At o
Slide 28: Income Statement
Income Statement EUR million 1–3/2015 1–3/2014 1–12/2014 1-12/2013 Net sales 380.1 438.3 1,901.6 2,083.5 EBITDA excl. non-recurring items 51.9 65.5 392.0 436.6 of net sales 13.6% 14.9% 20.6% 21.0% Amortisations related to TV programme rights -48.9 -43.1 -159.9 -171.1 Amortisations related to prepubl
Slide 29: Net Sales Development
Net Sales Development Q1 2015 1–3/2015 1–3/2014 1–3/2015 Media BeNe: Sales decline is mainly related to EUR million EUR million organic growth, % divestments of non-focus magazine Group 380.1 438.3 -3.8 titles and lower sales in print business. TV distribution sales and Aldipress Media BeNe 189.5 19
Slide 30: EBIT Excluding Non-Recurring Items Development
EBIT Excluding Non-Recurring Items Development Q1 2015 EUR million 1–3/2015 1–3/2014 Media BeNe: + Cost efficiency Group -19.9 -4.0 + Aldipress performance supported by new clients Media BeNe 5.8 8.3 - Print sales, mainly due to divestments Media Finland -2.1 0.4 - Higher TV programming amortisation
Slide 31: Free Cash Flow
Free Cash Flow Cash flow from operations less cash CAPEX EUR million 1–3/2015 1–3/2014 1–12/2014 1-12/2013 EBITDA excl. non-recurring items 51.9 65.5 392.0 436.6 TV programme costs -46.4 -44.8 -184.7 -186.4 Prepublication costs -6.8 -7.1 -28.5 -31.2 Change in working capital -30.4 -27.8 22.9 19.8 In
Slide 32: Capital Structure
Capital Structure 31 March 2015 Net debt: EUR 846 million (Q1 2014: 920) Key figures – Net debt / EBITDA adjusted 4.7 times (4.1) Net debt (lhs) Net debt / EBITDA (rhs) EBITDA adjusted: 12-month rolling EBITDA excl. non- 1600 6 recurring items, where acquired operations are included 1408 and div
Slide 33: Appendix
1. Sanoma in brief 2. Sanoma’s strategy 3. Financials 4. Appendix 33 June 2015
Slide 34: Net Sales Split
Net Sales Split Rolling 12 months Media operations Learning Netherlands and Finland 86% of net sales Diversified portfolio with several key markets 44% 33% 42% 26% 16% 12% 12% 9% 4% 2% Netherlands Finland Belgium Other Netherlands Poland Finland Belgium Sweden International Consumer media (BeNe and
Slide 35: Consumer confidence
Consumer confidence Netherlands Finland 30 20 10.2 10 0 8.0 -10 -20 -30 -40 2011 2012 2013 2014 2015 35 June 2015
Slide 36: Media BeNe
Media BeNe Key figures 2015 2014 2013 EUR million Q1 FY 2014 Q4 Q3 Q2 Q1 FY 2013 Net sales 189.5 870.8 241.5 203.6 231.7 194.0 896.8 Digital 67.1 308.6 90.3 67.8 84.6 65.9 305.3 Online & mobile 20.9 87.2 24.9 20.1 21.8 20.4 90.3 TV 46.2 221.4 65.4 47.7 62.8 45.5 215.0 Print 105.6 479.4 123.2 115.6 1
Slide 37: Media Finland
Media Finland Key figures 2015 2014 2013 EUR million Q1 FY 2014 Q4 Q3 Q2 Q1 FY 2013 Net sales 143.0 637.2 165.5 148.0 164.6 159.0 675.4 Digital 50.0 198.7 53.2 43.5 53.4 48.6 185.9 Online & mobile 21.9 84.8 23.2 18.3 22.1 21.3 74.7 TV & radio 28.0 113.8 30.1 25.1 31.4 27.3 111.2 Print 90.5 432.5 110
Slide 38: Learning
Learning Key figures 2015 2014 2013 EUR million Q1 FY 2014 Q4 Q3 Q2 Q1 FY 2013 Net sales 37.4 292.0 30.9 113.0 106.9 41.2 304.6 Netherlands 21.5 98.1 8.3 24.6 40.7 24.5 95.3 Poland 6.6 86.8 12.6 51.1 17.8 5.2 83.8 Finland 3.8 48.3 4.1 10.6 28.8 4.8 53.5 Belgium 1.5 34.8 2.6 16.7 13.6 1.9 33.8 Sweden
Slide 39: 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 40: TV – Net Sales and EBIT Seasonality
TV – Net Sales and EBIT Seasonality 2010–2014 average for Dutch and Finnish TV* Net sales split EBIT** split 5% 22% 29% 30% 44% 29% 20% 20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. 40 June 2015
Slide 41: Magazines – Net Sales and EBIT Seasonality
Magazines – Net Sales and EBIT Seasonality 2010–2014 average for Dutch and Finnish Magazines* Net sales split EBIT** split 18% 23% 27% 29% 28% 26% 24% 24% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes Dutch and Finnish operations, excluding TV guides. 2010-2012 not restated with IFRS 11 ‘Joint Arrangements’. **
Slide 42: Newspapers – Net Sales and EBIT Seasonality
Newspapers – Net Sales and EBIT Seasonality 2010–2014 average for Newspapers (Finland) incl. digital business Net sales split EBIT* split 26% 25% 23% 30% 19% 24% 25% 29% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 42 June 2015
Slide 43: Learning – Net Sales and EBIT Seasonality
Learning – Net Sales and EBIT Seasonality 2010–2014 average for Learning Net sales split EBIT* split in relative terms 12% 13% 35% 40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 43 June 2015
Slide 44: Sanoma – Largest Shareholders
Sanoma – Largest Shareholders % of shares 31 May 2015 and votes 1. Jane and Aatos Erkko Foundation 23.18 23.2% 2. Antti Herlin (Holding Manutas Oy: 10.46%, 10.79 personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 48.7% 6. Ilmarinen Mutual Pension
Slide 45: Analyst Coverage
Analyst Coverage Carnegie Investment Handelsbanken Nordea Bank Capital Markets Sami Sarkamies Matti Riikonen Rasmus Enberg tel. +358 9 165 59928 tel. +358 9 6187 1231 tel. +46 8 701 5116 Nordea.com/markets Carnegie.fi Handelsbanken.com/ Pohjola Danske Markets Equities capitalmarkets Kimmo
Slide 46: Sanoma's IR Team
Sanoma’s IR Team Mr Olli Turunen tel. +358 40 552 8907 olli.turunen@sanoma.com Mr Pekka Rouhiainen tel. +358 40 739 5897 pekka.rouhiainen@sanoma.com Ms Katariina Hed tel. +358 50 412 5120 katariina.hed@sanoma.com 46 June 2015
Slide 47: 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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