Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Investor Presentation (May 2015)

46 slides from Sanoma Oyj's investor presentation, May 2015

  1. Slide 1: Sanoma Corporate Presentation

    Sanoma Corporate Presentation May 2015

  2. Slide 2: 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

  3. Slide 3: Strong Brands, Great Content, Loyal Customers and Consumers

    Strong Brands, Great Content, Loyal Customers and Consumers 3 May 2015

  4. Slide 4: 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

  5. Slide 5: 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

  6. Slide 6: Summary of Operating Performance

    Summary of Operating Performance 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 & mobil

  7. Slide 7: Sanoma's Strategy

    Sanoma’s Strategy SAN OM CMecaueaelile|

  8. Slide 8: Quick Look at Sanoma's Strategy in 2014

    Quick Look at Sanoma’s Strategy 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 Renewal of products and services Grow

  9. Slide 9: 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 Renewal of products and services Growth 2016

  10. Slide 10: 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

  11. Slide 11: 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 Voiko näitä jotenkin 550 yhdistää? 470 475 485 505  New sales built around magazine brand 260 380 6: 550k 415 7: 330k 330 375 (TV show / E-commerce / Events)

  12. Slide 12: 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

  13. Slide 13: Good Growth in Digital Sales of News Brands Ilta-Sanomat and Helsingin Sanomat

    Good Growth in Digital Sales of News Brands Ilta-Sanomat and Helsingin Sanomat IS the largest digital service Growth in digital sales in Finland  Very strong position in mobile. Mobile sales developing extremely well +19%  Strong growth in ISTV video starts and sales 2013 2014 HS on good growth pa

  14. Slide 14: 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

  15. Slide 15: Learning – Highlights of Success in 2014

    Learning – Highlights of Success in 2014 Organic sales growth + 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

  16. Slide 16: 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 Cost-savings p

  17. Slide 17: 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 was EUR 70 61 93 million 60 50  Outsourcing of ICT and f

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Key Priorities in 2015

    Key Priorities in 2015 Improve performance of core brands and domains - Commercial excellence, cross-media and data analytics Boost SBS TV operations - Increase revenue and EBIT based on new content, cost savings and market share gains Integration of BeNe operations - Find synergies and leverage ope

  21. Slide 21: Q1 2015 Interim Report

    Q1 2015 Interim Report

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Financials

    Financials SQN OM CMecauteaelile|

  27. Slide 27: 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

  28. 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

  29. Slide 29: Net Sales Development – FY 2014

    Net Sales Development – FY 2014 1–12/2014 1–12/2013 1–12/2014 Media Decline is related to weaker print sales, EUR million EUR million organic growth, % Netherlands: a major part resulting from the sale of Group 1,901.6 2,083,5 -3.7 23 titles Media 652.7 685.8 -2.5 Netherlands Media Decline in net sa

  30. Slide 30: EBIT Excl. Non-Recurring Items Development – FY 2014

    EBIT Excl. Non-Recurring Items Development – FY 2014 EUR million 1–12/2014 1–12/2013 Media + Improved profitability in TV, partly Netherlands: supported by lower programming Group 118.8 154.6 costs Media Netherlands 65.0 73.2 - Lower profitability in digital business Media Finland 23.5 30.7 - Invest

  31. 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

  32. 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

  33. Slide 33: Appendix

    Appendix ry ERM aeMiKe] get the world

  34. Slide 34: 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) Rea

  35. 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 May 2015

  36. 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

  37. 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

  38. 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

  39. Slide 39: 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. 39 May 2015

  40. Slide 40: 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’. **

  41. Slide 41: 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. 41 May 2015

  42. Slide 42: 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. 42 May 2015

  43. Slide 43: Sanoma – Largest Shareholders

    Sanoma – Largest Shareholders % of shares 31 March 2015 and votes 1. Jane and Aatos Erkko Foundation 23.18 23.2% 2. Antti Herlin (Holding Manutas Oy: 10.46%, 10.53 personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 48.9% 6. Ilmarinen Mutual Pensi

  44. Slide 44: 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 44 May 2015

  45. Slide 45: 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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